JSW Ventures, the venture capital arm of Mumbai-based conglomerate JSW Group, is planning to raise ₹400–₹450 crore for its third investment fund, according to sources familiar with the matter.
This new corpus will be sourced exclusively from domestic investors, marking a continued push by corporate-backed VC firms to deepen their presence in India’s fast-evolving startup ecosystem.
JSW Ventures launched its second fund in 2020, with a total size of ₹300 crore. That fund is now fully deployed and included contributions from a diversified pool of institutional and family office backers, including SIDBI, NABARD, and the family office of Ranjan Pai, Chairman of Manipal Education and Medical Group.
Focus Areas & Key Bets
JSW Ventures focuses on early-stage technology companies across key sectors such as consumer, healthcare, financial services, enterprise tech, sustainability, and agriculture. In addition to capital, the fund provides startups with operational support, strategic insights, and access to the broader JSW Group ecosystem.
Investments from Fund II included follow-on capital into Purplle, alongside new bets on startups like Cureskin (dermatology-focused healthtech), Vetic (pet care), and Growcoms (agritech platform).
The firm’s first fund, launched in 2016 with approximately ₹75 crore—entirely backed by the JSW family office—delivered nearly 3x returns. A significant portion of this came from its early investment in Purplle, which raised ₹1,500 crore last October in a round led by the Abu Dhabi Investment Authority (ADIA). JSW Ventures continues to hold a minority stake in the company.
Other notable exits from the first fund include Indus OS, which was acquired by PhonePe in 2022, and HomeLane, which recently acquired DesignCafe through a share-swap.
Growing Domestic Momentum
Sachin Tagra, Managing Partner at JSW Ventures, is currently leading the firm’s efforts as it prepares to hit the market with its third fund.
JSW Ventures joins a growing list of domestic VC firms raising capital this year. Accel launched a $650 million early-stage fund in January, while A91 Partners closed its third fund at $665 million. Other firms, including Capital A and PixelSky Capital, are also targeting funds in the ₹400 crore range, focused on verticals such as deep tech, climate, manufacturing, and late-stage secondaries.
“Capital is increasingly available locally. Domestic LPs like SIDBI are stepping up, and family offices are actively deploying into VC funds. Raising funds from India is now far easier than making repeated international trips,” said Vikram Chachra, Founding Partner at 8i Ventures.
Rise of Corporate-Backed VC Arms
JSW Ventures’ fundraise also highlights the growing role of corporate-sponsored VC vehicles in India. Alongside JSW, other conglomerates such as Wipro Consumer Ventures, ICICI Venture, and Info Edge Ventures are ramping up investments in startups aligned with their core strategic areas.
These corporate-backed funds often bring domain expertise, patient capital, and distribution scale, enabling founders to unlock enterprise value beyond just financial investment.
A recent report by Bain & Company noted that 95% of India’s VC fundraising in 2023 (excluding Accel’s mega fund) was led by domestic players, reinforcing India’s position as the second-largest venture capital destination in Asia-Pacific.
