Bat VC, founded by Indian tech veterans, launches its second fund worth $100 million to invest in early-stage AI, fintech, and enterprise startups across the US and India. The fund aims to capitalize on the growing AI ecosystem and the strategic shift of tech operations to India amid US-China tensions.
Bat VC, a venture capital firm founded by Indian tech veterans from Yahoo, X India, and Intuit, has launched a second fund with a target close of $100 million. The New York-headquartered firm is doubling down on its strategy to invest in early-stage startups in the US and India, particularly those working in artificial intelligence (AI), fintech, and enterprise technology. With investment sizes ranging between $3 million to $5 million, Bat VC aims to support startups that show strong signs of product-market fit.
Aditya Mishra, Managing Director and General Partner at Bat VC, explained that the firm evaluates early-stage startups by balancing the strength of their teams with go-to-market capabilities. Fund II is positioned as a follow-on to the firm’s first $8.2 million fund, which has posted a 29% internal rate of return and already delivered two successful exits. Bat VC is currently in discussions with more than 10 limited partners, including institutional investors, family offices, fund of funds, and high-net-worth individuals, for the first close of the fund.
The decision to operate across India and the US reflects Bat VC’s belief in the bilateral potential of startups between the two nations. With the ongoing US-China trade tensions, India is emerging as a preferred destination for tech investment, manufacturing, and innovation. The shift is already visible with companies like Apple producing $22 billion worth of iPhones in India over the last fiscal year, and Meta considering its first data center in the country.
India’s startup landscape is thriving. The Ministry of Commerce and Industry recently reported over 159,000 recognized startups, collectively creating around 1.7 million direct jobs since 2016. Alongside this growth, a new wave of Indian-origin professionals working in US tech firms are returning home to build companies, further accelerating the startup ecosystem.
Bat VC believes this dynamic makes India the next global innovation hub, especially in the AI space. According to Ravi Metta, the firm’s US-based General Partner, more companies are offshoring AI and technology operations to India. He expects this will foster a new generation of global entrepreneurs based out of India, working on solutions ranging from robotics to logistics.
Manish Maheshwari, General Partner and India Head at Bat VC, added that the US-India tech corridor is rapidly growing and could soon rival the scale and significance of the US-Israel startup relationship. With deepening economic ties and shared strategic interests, Maheshwari believes India will be a central player in the global tech economy, especially in enterprise software and AI.
As Bat VC continues fundraising for Fund II, the firm is positioning itself as a cross-border enabler of innovation. The goal is to support visionary founders on both sides of the world, helping them scale with capital, guidance, and access to both the Indian and American markets.
