Artha India Ventures (AIV) has announced the first close of ₹250 crore for its second micro-VC vehicle, Artha Venture Fund II (AVF II), aiming for a final corpus of ₹500 crore including a green-shoe option. The fund will back early-stage startups, with an initial focus on premium consumption, fintech infrastructure, applied AI, and deep tech.

The new fund proposes to deploy initial cheques of ₹4 crore, with follow-on support up to ₹16 crore. AIV says it will target 36 seed-stage companies over a four-year deployment window, selectively backing post-seed, post-revenue founders even in challenging capital environments.

The first close is backed largely by domestic LPs (≈ 90%), supplemented by international capital. This move is seen as a strong signal amid a slowdown in seed investments—AIV’s leadership notes India has seen fewer than 100 seed deals per month in recent times.