US-Based VC Firm Looks to Leverage India’s Tech Growth Story with Diversified Investments
Alphatron Capital, a US-based venture capital (VC) firm formerly known as SMK Ventures, has announced the successful closure of its maiden fund at $30 million (INR 249 crore), surpassing its initial target of $25 million (approximately INR 207 crore) with a 20% oversubscription.
Founded by Suresh Vaswani, Karan Negi, Sudhir Pai, and Vishwesh Pai, Alphatron Capital operates by pooling funds from US-based investors and then acting as a limited partner for India-focused VCs and private equity firms investing in domestic startups.
The firm aims to provide its US investors with access to a diversified portfolio of India’s burgeoning tech companies while streamlining entry barriers for them. The fund will predominantly target startups operating in sectors such as Software as a Service (SaaS), fintech, healthtech, artificial intelligence/machine learning (AI/ML), digital content, and direct-to-consumer (D2C) segments.
“We see immense growth opportunities for investors in the Indian economy driven by technological advancements. We are thrilled to serve as a conduit for US-based investors to participate in India’s promising future over the coming decades,” stated Suresh Vaswani, founding partner of Alphatron Capital.
Alphatron Capital conducts rigorous due diligence into its target funds and intends to actively seek out tech-led funds and co-investment opportunities. The firm has already invested in 11 funds, including prominent names like Blume Ventures, 3one4 Capital, Chiratae Ventures, and Speciale Invest, in addition to making five special purpose vehicle (SPV) or co-investments.
This announcement coincides with a broader trend of increased fundraising activities among VC and private equity firms, despite the prevailing funding constraints. Cedar Capital recently revealed the first close of its INR 240 crore FinTech Venture Capital Fund, while B Capital, led by Facebook cofounder Eduardo Saverin, concluded its ‘Opportunities Fund II’ at $750 million, with a focus on follow-on investments in its existing portfolio of high-performing companies across North America and Asia.
According to Inc42’s Startup Investor Landscape Report 2023, Indian VC firms raised over $11 billion last year and deployed investments worth $9.4 billion in 2023, underscoring the continued growth and attractiveness of the Indian startup ecosystem.
