Pavestone VC, a Hyderabad-based venture capital firm, has secured INR 15 Cr (approximately $1.8 Mn) from Colruyt Group India, the engineering arm of Belgian retail giant Colruyt Group, for its maiden fund aimed at boosting growth-stage startups in deeptech and enterprise tech sectors.
Pavestone VC’s Vision and Fund Details
Founded in 2021 by Sridhar Rampalli, Srikanth V J Tanikella, and Laxmikanth V, Pavestone VC focuses on backing promising startups through its Pavestone Technology Fund. This SEBI-registered alternative investment fund (AIF) targets a corpus of INR 900 Cr (approximately $107.7 Mn).
The fund, already boasting an impressive INR 800 Cr in capital, plans to finalize its fundraising in the coming months, with an ambitious investment strategy targeting 12-15 growth-stage startups.
Investment Strategy and Focus Areas
Pavestone VC’s investment strategy includes an average ticket size ranging between INR 25-60 Cr, with a keen eye on sectors such as spacetech, 5G infrastructure, blockchain, quantum computing, and EV components. The firm also intends to support five early-stage firms, amplifying its impact across diverse technology verticals.
Strategic Partnership with Colruyt Group India
Welcoming Colruyt Group India as a strategic investor, Pavestone VC acknowledges the invaluable expertise and industry insights the collaboration brings. Colruyt Group India’s commitment to digitalization and automation aligns seamlessly with Pavestone VC’s vision to capitalize on promising investment opportunities in the evolving tech landscape.
Thriving Deeptech and Enterprise Tech Ecosystem
The investment milestone arrives amidst a flourishing landscape for deeptech and enterprise tech startups in India. Rapid digitalization, tech adoption, and supportive government policies have fueled remarkable growth in these sectors.
Impressive Funding Trends
The period from 2014 to 2023 witnessed a remarkable surge in deeptech startups, with funding exceeding $1.5 Bn across 343+ deals. Similarly, enterprise tech startups saw substantial investment inflows, with $1.3 Bn raised in 2023 alone, indicative of sustained investor confidence and sector resilience.
