Jaipur, June 2025 — In a bold move poised to disrupt the current venture capital landscape, Swishin Ventures has secured SEBI Category-I AIF (Alternative Investment Fund) approval to launch a $20 million fund, with an additional $5 million greenshoe option, targeted exclusively at startups from India’s Tier II and III cities.
🔍 The Focus
Led by Mahavir Pratap Sharma, Swishin Ventures aims to back early-stage startups outside the traditional metros. The fund will prioritize sectors such as:
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BFSI (Banking, Financial Services & Insurance)
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Healthcare
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Consumer Services
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Deeptech
This strategy directly challenges the historical concentration of VC funding in India’s top metros like Bengaluru, Mumbai, and Delhi-NCR.
📊 The Problem: Capital Mismatch
While innovation is decentralizing, venture capital still isn’t.
| Metric | Value |
|---|---|
| Share of startups from Tier II/III | 51% (as of 2024) |
| Share of VC capital received | <4% |
| Metro cities’ share of VC investments | >96% |
| Average deal size in metros (2024) | $2.1M |
| Average deal size in Tier II/III (2024) | $450K |
Despite accounting for more than half of India’s startup base, non-metro founders remain capital-starved. Swishin Ventures is one of the few institutional investors targeting this gap with a structured, regulated fund vehicle.
🧠 Strategic Implication
By focusing on smaller cities, Swishin not only accesses lower valuations and high founder commitment, but also leverages:
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Cheaper talent and operations cost
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Untapped niche markets
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Founders who are solving hyperlocal problems at scale
This aligns with emerging trends, including:
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Government support for regional incubation (Startup India, Atal Innovation Mission)
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Increasing digital and financial literacy in smaller towns
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Infrastructure growth through BharatNet and 5G rollouts
🧩 Competitive Edge
Unlike metro-focused VCs, Swishin Ventures plans to:
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Build local networks and mentorship cells
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Deploy capital in smaller tranches but to a wider base
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Offer operational support for scale
⏭ What Next?
Swishin’s fund is expected to make its first investments by Q4 2025. Given India’s growing digital inclusion and regional startup maturity, the firm’s contrarian bet might soon become mainstream.
If successful, this fund could become a blueprint for regional VC models, proving that real Bharat is not just a market — it’s a source of innovation.