- BAT VC plans to invest up to $100 million in Indian startups through its second fund, focusing on AI, deeptech, fintech, and B2B SaaS.
- India's AI sector is projected to reach $17–$22 billion by 2027, growing at an annual rate of 25–35%.
New York-headquartered venture capital firm BAT VC has formally entered the Indian market, announcing plans to invest up to $100 million (approximately Rs 834 crore) in startups focused on artificial intelligence (AI), deeptech, fintech, and B2B SaaS.
The capital will be deployed through its second fund, Fund II, which builds on the firm's global track record of backing high-potential early-stage ventures.
Fund II will target startups developing AI-first solutions with global relevance. The move aligns with India's booming AI sector, which is growing at an annual rate of 25–35% and is projected to reach $17–$22 billion by 2027, according to a 2024 Nasscom–BCG report.
Additionally, according to Grand View Research, the enterprise SaaS segment, which generated $11.5 billion in revenue in 2024, is expected to grow at a CAGR of 15% over the decade.
To anchor its India operations, BAT VC has onboarded a leadership trio with deep entrepreneurial and technical roots. Former Twitter India head and Fanory.ai founder Manish Maheshwari will lead the India initiative from Bengaluru.
He is joined by Aditya Mishra, ex-FaceLogique founder with stints at Yahoo!, EY, and Accenture, and Ravi Metta, former CTO of Finastra and engineering head at Intuit.
Fund II builds on BAT VC’s early investments in Wand AI, Uptiq AI, and StockGro, along with exits from Nickelytics and Accern. In 2023, U.S.-India cross-border AI investments surged 180% to $4.7 billion, further validating BAT VC’s thesis.
Despite having 20% of the world’s population, India receives under 5% of global VC funding.
BAT VC sees this as an arbitrage opportunity, aiming to provide strategic capital and domain expertise to India’s rapidly maturing tech ecosystem.
Edited by Annette George
