Arkam Ventures, an Indian venture capital firm, is targeting $180 million for its second fund, which would nearly double the size of its initial fund. The firm aims to capitalize on the expanding ‘middle India’ opportunity by investing in the growing startup ecosystem. Arkam is hopeful of retaining support from high-profile international institutional investors and family offices for the new fund. With its second fund, Arkam plans to write larger early-stage checks to secure bigger stakes in emerging companies. The firm’s strategy is centered around addressing the needs of India’s wider populace, including families with lower incomes, by keeping costs of service and acquisition economical.
Arkam Ventures is known for its investments in startups such as Jar, Smallcase, Kreditbee, and Jai Kisan. The firm believes that startups are now capable of catering to the needs of the wider Indian population due to the emergence and adoption of digital platforms such as UPI, Aadhaar, and e-KYC. These platforms have created a more promising landscape for startups, enabling them to create new markets and disrupt established players.
However, the current market conditions have led to a reduction in deal activity, as investors have become increasingly cautious. Despite this, venture capital firms have a significant amount of available capital, indicating that dealmaking could gather momentum in the near future. The availability of locally sourced capital is expected to result in rational behavior, without any irrational exuberance driving up valuations.
Arkam Ventures is led by co-founders Bala Srinivasa and Rahul Chandra, who bring a wealth of experience to the table. Prior to Arkam, Srinivasa held positions at Kalaari Capital and worked at startups, while Chandra has had a diverse career including roles at SEBI and Helion. Both co-founders believe in the potential of India’s startup ecosystem and are optimistic about the investment opportunities in the country.
Overall, Arkam Ventures’ second fund aims to tap into India’s emerging startups and support their growth in the evolving market landscape. The firm’s focus on the ‘middle India’ opportunity and its belief in the potential of startups to address the needs of the wider populace reflect its long-term investment strategy.
