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US-based Alphatron Closes Maiden Fund at $30 Mn for Indian Startup Investments

US-based Alphatron Capital has closed its maiden fund at $30 million, aiming to provide US investors access to Indian tech startups. The fund will focus on sectors like SaaS, fintech, and healthtech.

Venture capital firm Alphatron Capital, headquartered in the US and formerly known as SMK Ventures, has successfully closed its maiden fund at $30 million (approximately INR 249 crore). The fund, which originally targeted $25 million (about INR 207 crore), was oversubscribed by 20%.

Gateway for US Investors

Founded by Suresh Vaswani, Karan Negi, Sudhir Pai, and Vishwesh Pai, Alphatron acts as a limited partner for India-focused venture capitalists (VCs) and private equity (PE) firms, pooling money from US-based investors. The firm aims to provide US investors with access to a diverse range of Indian tech companies, while minimizing entry barriers for them.

Focus Areas

The fund will primarily target startups in sectors such as Software as a Service (SaaS), fintech, healthtech, artificial intelligence/machine learning (AI/ML), digital content, and direct-to-consumer (D2C) businesses. Alphatron sees significant growth opportunities in the Indian economy driven by technological advancements.

Investment Strategy

Alphatron conducts thorough due diligence into its target funds and is keen on identifying tech-led funds and co-investment opportunities. The firm has already invested in 11 funds, including those managed by Blume Ventures, 3one4 Capital, Chiratae Ventures, and Speciale Invest, in addition to making five SPV/co-investments.

Thriving Investment Landscape

Alphatron's fund closure comes at a time when several VC and PE firms are raising capital despite the ongoing funding challenges. Recent announcements include Cedar Capital's first close of its INR 240 crore FinTech Venture Capital Fund and B Capital's closure of its 'Opportunities Fund II' at $750 million, primarily for follow-on investments in its existing portfolio companies in North America and Asia.