Raghav Bahl, former head of investments at Alibaba Group’s India business, and Soham Avlani, ex-partner at 9Unicorns, have announced the launch of a new venture capital fund, PROMAFT Partners, with an initial corpus of INR 1,000 crore.

This sector-agnostic fund aims to invest in companies that have achieved a proven product-market fit, planning to make 10-12 strategic investments with two to three deals each year.

“Growing without product-market-fit is like driving fast in the wrong direction. And product-market-fit without sustainable competitive advantage doesn’t create shareholder value. We encourage our entrepreneurs to grow slowly, while investing in the core fundamentals of the business. We plan to make two-three investments per year. We are backed by prudent investors, which gives our entrepreneurs the advantage to build for the long term,” said Raghav Bahl.

PROMAFT Partners’ general partners, Bahl and Avlani, plan to leverage their extensive global investing experience across China, Southeast Asia, and Europe to assist startups in developing go-to-market strategies, business plans, hiring practices, and financing options.

The fund is supported by a range of Indian family offices and market leaders such as Paytm, Zomato, Browserstack, Livspace, PharmEasy, and VideoVerse, who will also act as mentors to the portfolio companies.

“We believe that this vintage encourages entrepreneurs to develop capital-efficient businesses while the absence of large funds has resulted in valuations to sober down. We remain excited about this environment as it provides for a highly attractive ‘risk-return profile’ for both investors and entrepreneurs,” said Avlani.

Both Bahl and Avlani bring significant experience, having managed large portfolios that include brands like Swiggy, Paytm, BigBasket, XpressBees, TaxiForSure, VideoVerse, and PharmEasy. Their track record boasts over USD 1 billion in profitable cash exits from India, positioning PROMAFT Partners as a promising new player in the venture capital landscape.