Sanjay G Kothari, who previously worked as a partner at consulting firm RedSeer and as a general partner at Wyser, said his experience working closely with founders highlighted a gap between early capital availability and structured venture support.AudTen Ventures has launched its debut sub-₹50 crore fund to back AI-led and technology-enabled startups in India, betting on a growing need for structured capital and faster decision-making at the angel and pre-seed stages.
The firm plans to invest ₹50 lakh to ₹1.5 crore in 18–21 startups, with a focus on enterprise software, fintech, BFSI, healthcare and manufacturing applications where artificial intelligence is driving measurable productivity gains.
AudTen is positioning itself as a nano VC, an emerging category of early-stage funds characterised by smaller fund sizes, solo general partner models and tightly defined investment theses.
“India’s angel ecosystem has grown rapidly, but founders still face the highest friction when they need capital the most,” founder Sanjay G Kothari told ETEntrepreneur. “Angel rounds often involve fragmented investors, slow decision cycles and limited accountability after the cheque is written.”
The firm has secured regulatory approvals and is in the final stages of its first close, with investments expected to begin in the coming months.
Kothari, who previously worked as a partner at consulting firm RedSeer and as a general partner at Wyser, said his experience working closely with founders highlighted a gap between early capital availability and structured venture support.
“Stitching together an angel round can take months, and founders spend disproportionate time managing investors instead of building,” he said. “We are trying to bring venture-style discipline and speed into that stage.”
Nano VC model targets early-stage gap
Nano VCs, which have gained traction in the US, typically operate with smaller funds, focused portfolios and higher involvement with founders. AudTen is adopting a similar approach while operating within India’s framework.The fund follows what it calls a “friction removal capital” strategy, combining early-stage funding with operational and strategic support for startups navigating the zero-to-one phase.
Kothari said the firm will adopt a high-conviction, low-frequency investment approach rather than deploying capital across a broad portfolio.
“This is not a spray-and-pray strategy. The idea is to work closely with founders, help them build financial discipline, support go-to-market execution and assist in future fundraising,” he said.
The firm expects to move from initial pitch to investment agreement within roughly three weeks.
AudTen’s limited partner base primarily comprises CXOs and experienced operators, many of whom are entering startup investing for the first time. According to Kothari, these LPs are expected to play a hands-on advisory role.
“Many of our LPs want to contribute beyond capital. They bring domain expertise, customer access and operating experience, which becomes valuable as companies start scaling,” he said.
Betting on vertical AI and agentic applications
AudTen’s investment thesis centres on vertical AI and enterprise-focused applications, as the firm believes horizontal AI tools risk commoditisation with rapid advances in foundational models.
“Large language models will provide base infrastructure, but long-term value will come from companies solving deep workflow problems within specific industries,” Kothari said. “Otherwise, startups risk becoming wrappers that can be replaced as core models evolve.”
The firm sees strong opportunities emerging in agentic AI, healthcare and financial services, where automation and decision intelligence are reshaping enterprise operations.
B2B focus shaped by fund size and scalability
“For consumer businesses, capital requirements and scaling dynamics are very different. With our fund size, we believe we can create more impact by working closely with enterprise-focused startups and helping them scale globally,” Kothari said.
The firm expects international market expansion and go-to-market strategy to become key support areas for portfolio companies as they mature.
The fund is structured as a nine-year vehicle and AudTen plans to reserve capital for follow-on investments in high-performing startups.
Kothari said the broader investment outlook remains strongly aligned with artificial intelligence across sectors.
“Over the next few years, every new startup will have an AI layer in some form. The question is not whether AI will be part of the business, but how deeply it is integrated into solving real industry problems,” he said.
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