BizDateUp launches Rs 200Cr Category I AIF Fund with a focus on startups in Tier 2 & Tier 3 cities

BizDateUp Technologies today announced the launch of a Category I Alternative Investment Fund (AIF) valued at Rs 200 crore.

The strategic fund is specifically tailored to foster innovation and entrepreneurship in Tier 2 & Tier 3 cities across India, with a strong emphasis on sectors promoting Sustainability and Social Impact through technology utilization, as per the release.

BizDateUp Technologies growth

With The Category I AIF Fund, BizDateUp aims to democratize access to funding and resources for promising startups, regardless of their geographical location. 

During the fiscal year of 2023-24, the firm made significant strides in the startup ecosystem, funding over 25 startups in Tier 2 and Tier 3 cities, raising a $10 million fund, engaging with more than 1,000 active angel investors, and realizing an average return of 3.5X. 

So far, It has supported startups, including PDRL - Passenger Drone Research Pvt. Ltd., ZEVO, Twyn, Immersive Labz, BattRe, InfinityX, Myints, Revamp Moto, AroLeap, BharatRohan, among others. 

The rise of tier 2 & tier 3 cities

India has surged to become the third-largest startup ecosystem globally, largely attributed to the escalating investments in tier 2 and tier 3 cities. By December 31, 2023, the Department for Promotion of Industry and Internal Trade (DPIIT) registered over 115,000 startups, with nearly half originating from these burgeoning regions.

Furthermore, recent estimations indicate a diversification of entrepreneurial focus across 56 different industrial sectors, including 13% in IT services, 9% in healthcare and life sciences, 7% in education, 5% in agriculture, and 5% in food and beverages, respectively.

Aiming to support diverse range of startups

The Rs 200 crore fund will provide startups in Tier 2 & Tier 3 cities with much-needed capital infusion, mentorship, and access to a vast network of industry experts and investors. BizDateUp aims to support a diverse range of startups spanning various sectors, including technology, healthcare, education, agriculture, and more.

Leadership comments

"Our mission at BizDateUp has always been to catalyze innovation and drive socioeconomic growth through strategic investments and support for budding entrepreneurs,” commented Jeet Chandan, Co-founder of BizDateUp Technologies.

He further emphasized, “With the launch of our INR 200 Crore Category I AIF Fund, we are reaffirming our dedication to empowering startups in Tier 2 & Tier 3 cities, unlocking their potential to become the next engines of growth and innovation in India." 

"India now boasts the world’s 3rd largest startup ecosystem, trailing only behind the USA and China. Recent reports highlight the significant potential of Tier-II and III cities as new growth drivers in India," stated Meet Jain, Co-founder of BizDateUp Technologies.

"For us, empowering startups in Tier 2 and Tier 3 cities is not just a mission; it's our passion. Through tailored support and resources, we're not just leveling the playing field; we're igniting untapped potential across India," Jain added.