The 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.
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.
