Early-stage venture capital firm Together Fund has hit the first close of its $150-million second seed fund to invest in software-as-a-service and AI companies in India.
Together Fund said the first close drew commitments from institutional investors in the US and Asia.
The vehicle will continue to focus on seed and Series A investments with cheque sizes ranging from $1–5 million in Gen AI, SaaS, enterprise software, developer tools, open source software, cloud-native infrastructure, and API-first businesses.
The launch of the new fund comes two years after Together Fund’s $85 million debut vehicle. The firm claims that six (Kula, Privado, RevenueHero, Spendflo, Spry and Toplyne) of its 20-strong portfolio has raised follow-on funding rounds from global investors.
Together Fund’s fund launch comes amid rising investor interest in the SaaS and AI sectors. Similar to the sea changes seen previously in the mobile and cloud eras, the SaaS and AI segment is at an inflection point where entire industries will get disrupted or created from scratch, opening up innumerable opportunities for ambitious startups to create iconic companies, Together Fund said in a statement.
A report by Stellaris Venture Partners and International Finance Corporation claimed that Indian SaaS startups that integrate AI into their work could create $500 billion in market value by 2030.
Earlier this year, Nexus Venture Partners, which has backed unicorns like Unacademy, Postman and Delhivery, closed $700 million in a new fund to invest in sectors including AI and SaaS. Separately, US-based Golden Sparrow launched a separate fund to invest in AI and SaaS startups in India.
Over the last three months, Together Fund said it has already invested in three Gen AI companies in healthcare, developer infrastructure, and modern marketing stack.