Vijay Shekhar Sharma, the founder and CEO of Paytm, a prominent digital payments and financial services platform in India, has recently unveiled the ‘VSS Investments Fund,’ with an initial investment of ₹30 crore. This fund aims to support Indian startups working in the fields of artificial intelligence (AI) and electric vehicles (EV). In this article, we delve into the specifics of this exciting development and its potential impact on the Indian tech ecosystem.
Fund Structure and Objectives
This Sebi-approved fund operates as a Category II Alternate Investment Fund (AIF), commencing with an initial corpus of ₹20 crore, with a provision for a green-shoe option of ₹10 crore, which would subsequently increase the fund’s total size to ₹30 crore. The fund’s primary focus is to provide essential financial support to emerging startups engaged in AI and EV technologies, potentially catapulting India into a hub for groundbreaking innovations in these domains.
Diverse Investments by Vijay Shekhar Sharma
Vijay Shekhar Sharma’s visionary approach extends beyond the VSS Investments Fund. He has been an active investor in various consumer and B2B tech ventures. Some of the notable startups he has backed include Ola Electric, GoQii, Daalchini, Treebo Hotels, Josh Talks, KWH Bikes, LeverageEdu, and KAWA Space. His involvement in these diverse ventures underlines his commitment to fostering innovation across multiple sectors of the Indian tech landscape.
Vision for India’s Tech Ecosystem
Speaking about his latest venture, Vijay Shekhar Sharma emphasised the immense potential of the Indian startup ecosystem. He stated, “The Indian startup ecosystem has some of the brightest entrepreneurs in the world, and we have the potential to become a powerhouse of advanced technology and AI-driven innovations. India’s aspiration to be a $10 trillion atma nirbhar economy will be defined by the spirit of innovation and entrepreneurship. The launch of this fund is a continuation of my belief in supporting young and promising Indian founders, aligned with the fact that technology has a huge role to play in the development of the country.”
Funding Contributors and Sponsorship
While Vijay Shekhar Sharma himself will be one of the primary contributors to the fund, there are plans to involve a select group of external investors who share the same vision for the growth of the Indian tech startup ecosystem. Notably, the AIF has been sponsored by VSS Investco Private Limited, an entity owned and controlled by the Paytm founder, further solidifying his commitment to this venture.
Prior Initiatives – The ‘Massive Fund’
It’s worth mentioning that this is not the first time that Vijay Shekhar Sharma has ventured into supporting critical areas. In 2018, he, along with venture capitalist Shailesh Vickram Singh of Seedfund, launched the ‘Massive Fund,’ which focused on climate and sustainability. This fund sought to invest approximately $150 million in startups involved in crucial sectors such as food, agriculture, air and water pollution, renewable energy, recyclables, and mobility. Vijay Shekhar Sharma’s commitment to sustainable technology and innovation is evidently a longstanding one.
In summary, the establishment of the ‘VSS Investments Fund’ by Vijay Shekhar Sharma represents a significant milestone in his continued efforts to nurture and propel the Indian tech startup ecosystem forward. With a primary focus on AI and EV technologies, this fund is poised to be a game-changer for emerging entrepreneurs in India, aligning with the country’s ambition to become a global technology and innovation hub.
