Together Fund to Close $150M AI Fund-II by June, Driving India's AI Innovation

Together Fund Poised to Close $150 Million AI-Focused Fund-II by June

Venture capital is evolving rapidly in India, and together fund Together Fund is positioned at the forefront of the AI investment wave. Founded by tech visionaries Girish Mathrubootham (Freshworks) and Manav Garg (Eka Software), the firm is set to finalize its $150 million Fund-II by June, with an intensified focus on artificial intelligence startups.

A Strategic Leap into the AI Ecosystem

Since its establishment in 2021 with an initial $85 million corpus, Together Fund has built an impressive track record with 31 investments across its funds. Looking ahead, Manav Garg revealed plans to back an additional 19–20 startups in the AI space. The emphasis is clear: to support companies developing AI applications, particularly those targeting the lucrative U.S. market. This comes as Indian startups increasingly demonstrate substantial revenue potential, bolstered by the nation’s deep pool of technical talent.

Key Growth Metrics and Future Outlook

Garg underscored that the hallmark of a successful AI venture lies in robust user adoption and high revenue trajectories. He highlighted how, on a global scale, AI software companies are capable of reaching $100 million in revenue within just two years. This metric-driven approach is vital in an environment where perceived hype must give way to sustaining measurable impact.

Moreover, as the market matures, seven of Together Fund’s portfolio companies are expected to enter their Series A rounds within the next four to six months. The firm’s portfolio features a diverse set of companies including:

• Thesys: A design copilot platform
• Metaforms: Developers of AI agents for market research
• Composio: Specialists in integrating AI with large language models
• Chaotix: A generative AI platform reshaping the gaming landscape

Navigating Market Dynamics and Global Trends

Although the pace of AI investments in India appears tempered—with 200 startups emerging monthly and a 26% dip in capital raised compared to the previous year—the volume of deals has surged, signaling significant underground activity. Garg explained that while major early-stage investments in the U.S. already captured global attention, India’s robust startup scene is quietly building momentum, setting the stage for a more dynamic investment cycle.

A Story of Leadership and Vision

The journey of Together Fund has accelerated since mid-2024. After Girish Mathrubootham stepped down as CEO of Freshworks to assume the role of executive chairman, and following the acquisition of Eka Software by STG, the firm welcomed ex-Google executive Lakshmi Shankar as a general partner to head the San Francisco office. This bolstering of leadership with top industry talent, including former Matrix Partners India executive Shubham Gupta, has further solidified Together Fund’s position in the AI arena.

In summary, Together Fund's strategic focus on high-growth AI companies, combined with its strong leadership and deep operational expertise, positions it not just as an investor, but as a catalyst in the evolving global tech landscape. The next few months promise exciting developments as early investments complete Series A rounds and innovative AI solutions continue to emerge from India.