Bengaluru-based GrowX Ventures launches Fund II with target corpus of Rs 400 crore

GrowX Ventures, a Bengaluru-based venture capital firm focusing on deeptech and B2B innovation, has announced its second fund, targeting a corpus of Rs 400 crore ($47.1 million).

The fund will support early-stage startups at the seed level and early-growth businesses at the Series B level. It plans to invest Rs 10 crore in seed funding rounds and between Rs 20 crore and Rs 30 crore in Series B stages.

Expanding focus to growth-stage startups

Since its founding in 2008, GrowX has primarily concentrated on seed-stage investments in sectors such as semiconductors, space technology, robotics, and AI.

With Fund II, the firm is expanding into growth-stage funding, a strategic move reflecting the growing interest in scaling startups with established products and customer bases.

Ashish Taneja, Founder and CEO of growX ventures, said, "With Fund II, we're doubling down on our belief in India's DeepTech and B2B sectors. The next wave of unicorns, building for global markets, will emerge from this space. This is India's decade, and the transformative power of Indian innovation is undeniable."

The firm aims to invest in 20 to 24 startups across industries like defence technology, spacetech, alternative materials, advanced manufacturing, fintech, healthtech, and supply chain logistics.

GrowX Ventures also plans to provide hands-on support to its portfolio companies, helping them scale their operations, optimize revenue growth, and achieve sustainable business models.

Growing investor confidence in Indian startups

This move aligns with a broader uptick in growth-stage investments in India. By November 2024, these investments reached $3.5 billion across 209 deals, demonstrating strong investor confidence in startups with proven models.

GrowX Ventures is capitalizing on this momentum by broadening its portfolio and targeting high-potential sectors.

The firm has backed notable companies such as Pixxel, Locus, Progcap, Bellatrix Aerospace, and RACE Energy. The first close of Fund II is expected by the end of 2024