BAT VC Launches $100M Fund to Fuel Indo-U.S. AI and SaaS Startups

New York-headquartered venture capital firm BAT VC has marked its entry into India with the rollout of its second fund, allocating up to $100 million to support early-stage startups operating across India and the United States. The fund will target companies in key sectors such as artificial intelligence (AI), deep tech, fintech, and B2B SaaS, with a focus on enabling breakthrough innovation.

Founded by Manish Maheshwari, former head of X India, alongside Aditya Mishra and Ravi Metta, BAT VC’s second fund continues the firm’s strategy of backing high-potential startups at an early stage. Its previous portfolio includes companies such as StockGro, Uptiq AI, Accern (acquired), Nickelytics (acquired), and Wand AI, reflecting a focus on innovative, AI-driven ventures.

BAT VC’s Fund II will concentrate on backing early-stage, AI-first startups with operations across India and the United States. The firm is particularly interested in ventures that are pre-product-market fit, offering hands-on support to help de-risk execution. Through internal frameworks and founder-focused tools, BAT VC aims to accelerate access to customers, capital, and talent across both geographies. The fund prioritizes companies embedding AI at the core of their product and business model.

The firm’s strategic focus on cross-border startups stems from data that suggests Indo-US ventures raise more capital and grow faster than their single-market peers. According to BAT VC, SaaS companies with a presence in both India and the US show 1.8 times higher median revenue growth.

The timing of BAT VC’s expansion aligns with rapid growth in India’s AI and enterprise software ecosystem. The AI sector in India is expanding at 32% annually and is projected to reach $23 billion by 2027. At the same time, the enterprise SaaS market has reached $8.7 billion and continues to grow at a pace more than double the global average. Cross-border AI investment between India and the US surged 180% year-on-year to $4.7 billion in 2023, highlighting a strong demand for innovation spanning both regions.

“Our move into India reflects a long-term belief in the country’s ability to lead in AI innovation,” said Maheshwari. “We’re focused on supporting founders building globally competitive technologies,” Mishra added, adding that BAT VC’s bi-continental presence gives it a unique edge in mentoring startups for cross-border expansion. Metta emphasized that the firm’s deep technical knowledge allows it to spot transformative startups early and support them through scale-up and commercialization.

BAT VC launched its first fund in 2022, delivering a reported internal rate of return (IRR) of 30% and a 1.61x multiple on invested capital (MOIC). Portfolio startups from that fund achieved an average revenue growth of 210% within just 18 months. Building on this performance, the firm now aims to deepen its presence in India through Fund II, bringing its hands-on, AI-first investment strategy to a broader pool of early-stage ventures.

The firm has attracted strong interest from institutional investors and family offices in both the US and India. BAT VC believes India, home to nearly 20% of the global population but receiving less than 5% of global venture capital, represents a key growth opportunity. As global investors shift attention away from China, India is increasingly viewed as a core destination for venture capital allocation. BAT VC positions itself as a strategic partner for startups looking to scale across Indo-U.S. markets, offering operational support and market access in both regions.