New York's BAT VC enters India, plans to invest $100 million in AI and deeptech startups

New York-headquartered venture capital firm BAT VC has announced its formal entry into the Indian market with plans to invest up to $100 million (approximately Rs 834 crore) in startups operating at the intersection of artificial intelligence (AI), deeptech, fintech and B2B SaaS. 

The investments will be channelled through the firm's second fund, which builds on its global track record of backing high-potential early-stage ventures.

Fund II will specifically target India-linked startups building AI-first solutions with global relevance. This strategic expansion comes as India's AI sector surges at an annualised growth rate of 25-35% and is projected to reach $17-$22 billion (roughly Rs 1.4-1.8 lakh crore) by 2027, according to a 2024 Nasscom–BCG report.

The enterprise SaaS market, meanwhile, generated about $11.5 billion (Rs 95,800 crore) in revenue in 2024 and is forecast to grow at roughly 15% CAGR over the rest of the decade, Grand View Research estimates.

High-calibre team anchors India strategy

BAT VC’s India initiative will be led by three General Partners with deep entrepreneurial and technical credentials. Former Twitter (now X) India head and Fanory.ai founder Manish Maheshwari will serve as India Head, relocating to Bengaluru to spearhead operations on the ground. Maheshwari is also a Mason Fellow from Harvard University and has held executive roles at Flipkart and Network18.

He is joined by Aditya Mishra, who previously exited FaceLogique and held leadership roles at Yahoo!, EY and Accenture, and Ravi Metta, who brings product-engineering expertise from his stints as CTO of Finastra and engineering head at Intuit.

“My move to Bengaluru underscores our conviction in India’s potential to lead the next wave of AI-driven global growth,” Maheshwari said.

Mishra added, “We aim to back Indian founders building globally relevant AI products, supported by capital and perspective from both the US and India.” 

Metta noted that BAT VC’s edge lies in its ability to identify high-impact startups early and guide them through global scale-up. “Our technical depth enables us to understand what's truly transformative, especially in complex AI-led domains.”

Building on a proven track record

Fund II builds on BAT VC's portfolio of successful early bets, including Wand AI, Uptiq AI, StockGro, and two exits—Nickelytics and Accern—via acquisitions. The firm’s experience in bridging US and Indian ecosystems is expected to be a strong differentiator as cross-border AI investments continue to rise. In 2023, U.S.-India cross-border AI investment volume jumped 180% to $4.7 billion, according to the firm.

The firm has already attracted strong interest from institutional investors and family offices across both the US and India, who are increasingly seeking exposure to India’s tech-forward innovation economy amid concerns over China-centric risks.

Underserved yet high-potential market

India, which accounts for nearly 20% of the global population, still receives less than 5% of the world's venture-capital allocation. BAT VC sees this gap as an arbitrage opportunity, and its new fund aims to fill the white space with strategic capital and domain expertise.

India’s startup ecosystem has matured rapidly. Total venture-capital funding rebounded to $13.7 billion in 2024, according to Bain & Company, after peaking at $36 billion in 2021. Private-equity and venture-capital exits totalled $24.8 billion in 2023, EY-IVCA data show, underscoring improving liquidity.

“India is no longer a frontier—it’s a core allocation for forward-looking global LPs,” BAT VC said in a statement, underlining its long-term commitment to the region.