Oval Building, HITEC City, HyderabadThe Hyderabad Angels Fund (HAF) has unveiled a new SEBI-registered Category I Alternative Investment Fund (AIF) designed to provide growth capital to high-potential startups in the Pre-Series A to Series B stage.
According to the fund’s press release, the vehicle will deploy up to ₹5 crore per startup across roughly 20 companies focused on scalable technology and artificial-intelligence-enabled business models.
HAF noted that the fund will co-invest alongside other investors, thereby enabling a syndication model and giving growth-stage companies access to follow-on support.
JOIN US TO STAY UPDATED ON YOUR FAVORITE MESSENGER APP!
The announcement comes amid a broader push by the Securities and Exchange Board of India (SEBI) to deepen the capital pool available to startups and to widen the scope for accredited investors in early-stage funds.
For startups, this development holds clear promise: many funding experts cite the Pre-Series A to Series B interval as a ‘scaling gap’, where teams with initial traction struggle to raise sufficient growth capital. By formally targeting that segment, HAF is positioning itself as a bridge investor and signalling confidence in the regional startup ecosystem.
Operationally, the fund is expected to source deals via HAF’s established angel-network platform and collaborate with incubators, accelerators, and co-investors to scale portfolio companies. HAF’s earlier seed-stage activity as part of the larger Hyderabad Angels ecosystem provides the foundation for this growth-stage venture.
For investors, the fund offers exposure to early-growth tech companies, underwritten by a team familiar with angel-syndication and the India startup landscape. For entrepreneurs, access to such a fund opens another lane of funding beyond seed, especially for those looking to expand, hire core teams, deepen tech, and go-to-market ahead of larger Series C rounds.
Challenges remain. The fund will need to show discipline in deal selection, valuations, and exit planning, especially in a market where late-stage IPOs or acquisitions remain relatively few. Moreover, co-investment dynamics mean that follow-on capital and syndicate quality will be critical for success.
In sum, HAF’s launch of a Category I AIF focused on growth-stage companies marks a notable step in India’s startup-funding architecture. For founders and investors alike, it signals both opportunity and the need for sharper execution.
ⓘ As part of our ongoing support for startups and SMEs, LAFFAZ Media publishes feature and resource articles that may include references and links to external websites. These inclusions are selected at our editorial discretion to provide valuable information to our readers. LAFFAZ Media does not control, endorse, or assume responsibility for the content or practices of external websites. For more details, please refer to our Terms and Conditions.
