Next Bharat Ventures has embarked on its initial fund-raising campaign with a total corpus of $40-45 million (approximately Rs 330-370 crore). This fund is anchored by Japan's Suzuki group, as reported by sources .
The fund will be based in Gujarat's GIFT City and will focus on investing in startups from there.
Apart from direct investments in companies, Next Bharat Ventures 2.0 will also act as a fund sponsor (limited partners) and invest in smaller VC firms. The process is ongoing, and details of the fund may change slightly.
The International Financial Services Centres Authority (IFSCA) has The Next Bharat Venture Fund - 1 listed as a Category II fund. Like other Alternative Investment Funds (AIFs), it will be governed by the Securities and Exchange Board of India (SEBI), but will receive special dispensations available to AIFs based in GIFT City.
These dispensations include higher operational flexibility, special tax incentives, and exemptions from certain regulatory requirements, which help lower operational costs.
Vipul Nath Jindal, head of the Suzuki Innovation Centre at Suzuki Motor Corporation, will lead Next Bharat Ventures. The fund aims to support impact entrepreneurs focused on solving problems for non-metro cities, or Bharat 2.0.
The company's website highlights its mission to address income disparities in India by uplifting the informal and rural sectors, positioning them as key drivers of Bharat's growth.
As internet penetration increases, more companies are targeting the customer base in non-metro cities, where people are increasingly open to trying new brands. Next Bharat Ventures aligns with this trend, aiming to support businesses that cater to this expanding market.
The launch of Next Bharat Ventures' fund adds to the available capital, or "dry powder," in the Indian startup ecosystem. Industry estimates suggest that venture funds collectively have at least $12 billion ready to be deployed in India, the world's third-largest startup ecosystem.
This amount is expected to grow with the introduction of new funds.
Several other funds have been launched in recent months, adding to the capital pool for startups:
Oister Global launched a Rs 440 crore fund.
Sauce.vc introduced its third fund with a corpus of Rs 250 crore.
Titan Capital is preparing a new Rs 300 crore fund.
Former BharatPe CEO Suhail Sameer started OTP Ventures, aiming to raise Rs 400 crore.
Larger funds have also been introduced, such as Cornerstone Ventures' second fund with a total capital pool of $200 million (around Rs 1,600 crore) and Synapses' $125 million (around Rs 1,000 crore) fund.
The accumulation of dry powder is also a result of existing funds becoming more selective, choosing to back only the most promising startups. This approach ensures that available capital is deployed effectively, supporting the best opportunities in the market.