Next Bharat Ventures is set to launch its first fund-raising initiative, aiming for a total corpus of $40-45 million (approximately Rs 330-370 crore). This venture is backed by Japan’s Suzuki Group, sources informed Moneycontrol. The fund will establish its base in Gujarat’s GIFT City, focusing on investments in startups.
In addition to direct company investments, Next Bharat Ventures will also function as a fund sponsor (limited partner), investing in smaller VC firms. The final structure of the fund is still being finalized.
Registered as a Category II fund with the International Financial Services Centres Authority (IFSCA), Next Bharat Ventures will operate under the purview of the Securities and Exchange Board of India (Sebi). However, it will benefit from the special dispensations afforded to AIFs in GIFT City, such as higher operational flexibility, tax incentives, and exemptions from certain regulatory requirements, which reduce overall operational costs.
The fund will be managed by Vipul Nath Jindal, head of Suzuki Innovation Centre at Suzuki Motor Corporation. The focus of Next Bharat Ventures is to support impact entrepreneurs targeting non-metro cities, termed as Bharat 2.0. The company’s mission is to address significant income disparities in India by enhancing the informal and rural sectors.
Next Bharat Ventures, a subsidiary of Suzuki Motor Corporation, aims to support the next billion in India by promoting impact entrepreneurs dedicated to making a significant difference, as stated on the company’s website.
With increasing internet penetration and a growing willingness among non-metro consumers to try new brands, more companies are targeting this customer base.
Next Bharat Ventures did not respond to Moneycontrol’s queries.
The introduction of a new VC fund will add capital to the existing dry powder available for the Indian startup ecosystem. Venture funds currently have at least $12 billion in capital waiting to be deployed in India, the world’s third-largest startup ecosystem, according to industry estimates.
Recently, several other funds have also been launched. Oister Global introduced a Rs 440 crore fund, Sauce.vc launched its third fund with a Rs 250 crore corpus, and Titan Capital is preparing a new Rs 300 crore fund. Additionally, former BharatPe CEO Suhail Sameer has initiated OTP Ventures with a target of Rs 400 crore.
Larger funds have also been introduced, such as Cornerstone Ventures’ second fund with $200 million (around Rs 1,600 crore) and Synapses’ $125 million (around Rs 1,000 crore) fund, adding to the total capital available for startup founders.
The combination of new fund launches and a selective approach by existing funds in backing only the best startups has contributed to the accumulation of dry powder, according to industry executives.
