Pavestone VC Closes Maiden Fund At INR 816 Cr

Hyderabad-based venture capital firm Pavestone VC, which counts E42, NewSpace Research & Technologies, LivNSense and Bellatrix Aerospace among its portfolio companies, has marked the final close of its Pavestone Technology Fund at INR 816 Cr (around $97 Mn).

In response to Inc42’s queries, Srikanth Tanikella, managing partner at Pavestone, said that through this fund, the firm is looking to invest in about 8-10 early growth stage companies with an average ticket size of $5-10 Mn.

Tanikella added that the company will additionally infuse capital into 5-6 frontier tech platforms with an average cheque size of $2 Mn.

The fund saw participation from The Self-Reliant India (SRI) Fund, family office of Mankind Pharma promoters, and Colruyt Group India, among others.

Pavestone Technology Fund is a SEBI-registered alternative investment fund (AIF), which initially targeted raising INR 600 Cr, later revised it to INR 900 Cr (around $107.7 Mn).

The VC firm said that the fund targets companies with proven market traction, established product-market fit, and solid partnerships with anchor clients. 

Furthermore, Pavestone also looks to invest in select early-stage ventures working on high-impact technologies aimed at transformative breakthroughs in enterprise solutions.

The fund initially targeted companies focused on spacetech, 5G infrastructure, blockchain, quantum computing and EV components.

“We’re delighted with the final close exceeding our initial target, and we are grateful for the support and trust of our investors. This outcome reflects our vision and commitment to rigorous analysis and strong governance in our investment approach,” said V Laxmikanth, managing partner at Pavestone.

Founded in 2021 by Tanikella, Laxmikanth and Sridhar Rampalli, Pavestone VC primarily makes its bet on growth-stage startups across deeptech and enterprise tech sectors via its maiden fund Pavestone Technology Fund.

Earlier in June, the maiden fund secured INR 15 Cr (around $1.8 Mn) from Colruyt Group India, the engineering arm of Belgian food and grocery retailer Colruyt Group.

Updated at 01:38 PM

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.