Kotak-backed seed fund Banyan Ventures closes ₹400 crore second fund

Banyan Ventures, based in Mumbai, is the latest example of how funding in India is maturing. The ₹400 crore deal puts the company among the better-funded players in its segment.

Banyan writes first cheques of ₹2 crore to ₹6 crore and reserves more than half of the fund for follow-on rounds.

Why it matters

Investors across Asia have become more selective since 2023, backing companies that can show paying customers and a clear path to profit. Founders in India told ASN that the bar for a new round now includes at least a year of steady revenue growth.

We built for the customer who was already paying, not the one we hoped would show up.

The company said it will use the next year to deepen its existing markets before expanding further.

The numbers

• Market: India
• Headquarters: Mumbai
• Sector: Funding
• Latest round: ₹400 crore

What comes next

Competitors are watching closely, and at least two rivals are said to be in talks to raise fresh capital. ASN will keep tracking Banyan Ventures and the wider funding market in India.

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