A91 Partners Joins Big League with $665M Fund as India’s VC Scene Shifts

A91 Partners, a Mumbai-based venture capital firm, has closed its third and largest fund at $665 million (over ₹5,600 crore), signaling strong investor confidence despite a cautious funding environment. Founded in 2018 by former Sequoia Capital India executives, A91 has rapidly scaled its capital base, having previously raised $350 million for its debut fund and $550 million for its second in 2021.

The homegrown investment firm, recognized for its backing of companies such as Digit Insurance, Atomberg, Rare Rabbit, Blue Tokai Coffee, Paperboat, and Sugar Cosmetics, is set to strengthen its commitment to India’s rapidly growing startup ecosystem. With this new funding, A91 Partners aligns itself with other global investors, including Accel, as they continue to capitalize on the opportunities within the world’s third-largest startup market.

A91 Partners was established in 2018 by VT Bharadwaj, Abhay Pandey, and Gautam Mago, who were all former managing partners at Sequoia Capital India. The firm focuses on investing in small to mid-sized companies across sectors like technology, consumer goods, healthcare, and financial services. The firm’s previous funds, raised in 2019 and 2021, secured $350 million and $550 million, respectively. With its third fund, aiming to invest between $10 million and $50 million in up to 15 companies, A91 sees increasing interest from limited partners in the potential of India’s market.

The International Finance Corporation (IFC), an arm of the World Bank, has been a key investor in A91’s third fund, committing $35 million. IFC’s support extends beyond financial backing; it also plans to help A91 set up gender committees at the investee level, fostering inclusive business practices. The fund’s growing support from global LPs is a testament to A91’s successful strategy of backing businesses with strong growth potential in key sectors.

The firm is known for its patient capital approach, providing long-term support to founders aiming to build enduring businesses. A91’s investment strategy focuses on companies that are poised for scale, with the firm typically making investments between $20 million and $50 million.

The Indian venture capital landscape is seeing a notable surge in fund closures, with significant players such as Matrix Partners India (now Z47) raising $550 million in 2023 and several others, including IvyCap Ventures and Sorin Investments, following suit in 2024. 

This trend highlights the growing confidence in the country’s startup ecosystem, even amid broader market caution. However, smaller VC firms like Eximius Ventures and SamVed VC have raised more modest funds, ranging between $30 million and $50 million. Despite the increased number of fundraises, overall venture capital activity has slowed, with fundraising down 35% in 2024 to $2.7 billion, compared to $4 billion in 2023.