Aroa Venture Partners Gets INR 40 Cr Commitment From SIDBI & UP Startup Fund

Venture capital firm Aroa Venture Partners, which counts CRED, Unacademy and Urban Company among its portfolio companies, has secured an investment commitment of INR 40 Cr ($4.8 Mn) from Small Industries Development Bank of India (SIDBI) under the Government of India’s Fund of Funds for Startups and Uttar Pradesh government’s UP Startup Fund schemes.

This endorsement from two prominent sovereign schemes reflects Aroa’s strong vision and strategic approach to building a robust startup ecosystem in India, the company said in a statement.

Founded in 2020 by Gaurav Gulati, Aroa Venture Partners is a venture capital firm with a multi-sector and multi-stage investment strategy. It focuses on early to growth-stage businesses across sectors.

The Aroa Opportunities Fund, a Category-II AIF, has secured over INR 400 Cr in in-principle commitments from family offices and institutions, with a final close planned for March 2025 (FY25).

Gaurav Gulati, founder and managing partner of Aroa Venture Partners, said, “With the demographic flywheel in full motion, we are eager to invest in groundbreaking ideas that will address the evolving needs and aspirations of the people of our nation in the coming decade and beyond.”

He further added that the investment will help the VC firm to support entrepreneurs who are developing innovative business ideas in sectors which fall within “Cradle-to-Care”. Besides, the proceeds will be deployed across healthcare, child development and care, insurance, financial services, deeptech, and other sectors.

In line with this, the VC firm has roped in Sekhar Puli as a general and managing partner. Sekhar, with nearly three decades of experience as a founder, entrepreneur, executive, and investor, previously served on the operating advisory board at BV Investment Partners. 

He cofounded REAN Cloud, acquired by Hitachi Vantara in 2018, and has been pivotal in scaling companies and achieving successful exits, including Rafter One, Flux7, and NUCON Aerospace.

Puli said, “The firm’s mission to drive transformative growth in India’s rapidly evolving startup landscape resonates deeply with my own passion for empowering entrepreneurs. I look forward to collaborating with this dynamic team to help shape the future of India’s next industry leaders.”

The development comes months after the VC firm reportedly launched a new fund targeting a corpus of INR 400 Cr ($50 Mn). The Aroa Opportunities Fund, which obtained registration as a Category II Alternative Investment Fund (AIF) with the Securities and Exchange Board of India (SEBI) in October 2022, garnered in-principle commitments exceeding INR 400 Cr to date.