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Nexus Venture Partners Splits $700M Fund Between AI and India Startups

While AI dominates headlines in venture capital, Nexus Venture Partners is taking a measured approach. The 20-year-old VC firm is launching a new $700 million fund, intentionally dividing its focus between AI startups and India-focused companies in consumer, fintech, and digital infrastructure. This dual strategy reflects a belief that chasing one hot sector can carry major risks, while India’s rapidly growing digital economy offers diverse opportunities for long-term growth.

Credit: Nexus Venture Partners

AI Remains a Core Focus, But Not the Only One

AI has absorbed a massive share of venture funding globally, and Nexus acknowledges its potential as a defining technology. Yet, the firm is wary of an overcrowded market. By splitting its fund, Nexus aims to capture AI’s upside while avoiding the pitfalls of overconcentration. “AI is a huge inflection point, and we are anchoring on that,” said Jishnu Bhattacharjee, a managing partner at Nexus. At the same time, he noted that AI innovations often find their most transformative applications in serving the masses, particularly in emerging markets.

India Startups Offer a Counterbalance

Nexus sees India as a critical growth engine. Its India-focused investments span consumer apps, fintech platforms, logistics, and digital infrastructure. This approach allows the firm to tap into an expansive market where digital adoption is accelerating. Unlike the highly competitive AI landscape, India offers opportunities that are broad, scalable, and often underexplored by global investors.

A Cross-Border Strategy Since 2006

Founded in 2006, Nexus has operated with a unique cross-border strategy. The firm manages a single integrated fund from offices in Delaware, Menlo Park, Mumbai, and Bengaluru. Its approach combines U.S.-based software and India-focused startup investments from the same capital pool. Over nearly two decades, this model has allowed Nexus to navigate both mature and emerging markets efficiently, blending global trends with local insights.

U.S. Portfolio: Developer Tools and AI Infrastructure

On the U.S. side, Nexus has backed early-stage software and AI infrastructure startups that have become widely adopted in the tech ecosystem. Companies like Postman, Apollo, MinIO, Giga, and Firecrawl exemplify the firm’s ability to identify products that developers rely on daily. These investments highlight Nexus’s expertise in spotting scalable solutions and technologies that support broader AI adoption.

India Portfolio: Consumer and Digital Growth

In India, Nexus has diversified its bets across sectors that are integral to the country’s digital transformation. Notable investments include Zepto, Delhivery, Rapido, Turtlemint, and Infra.Market. These startups address consumer convenience, fintech innovation, logistics efficiency, and digital infrastructure expansion. Nexus’s focus on India underscores the region’s importance as a high-growth, underinvested market with significant long-term potential.

Balancing Risk With Opportunity

By splitting its $700 million fund, Nexus aims to balance high-risk, high-reward AI investments with more diversified, steady-growth opportunities in India. This strategy reflects a careful consideration of market dynamics and the firm’s historical success in managing cross-border investments. It also signals to founders and LPs that Nexus is committed to thoughtful, balanced growth rather than chasing hype.

Leadership Perspective: Anchoring in Technology and Markets

Jishnu Bhattacharjee emphasized that the firm’s approach isn’t about shying away from AI but rather about ensuring that investments serve broader market needs. Many AI startups increasingly target real-world applications that improve access, efficiency, and convenience—trends that align naturally with Nexus’s India-focused investments.

Why Nexus’s Approach Matters

In a venture landscape dominated by AI fervor, Nexus’s strategy offers a refreshing counterpoint. Investors and startups alike benefit from a firm that combines technology insight with market diversification. By maintaining focus on India’s rapidly evolving sectors, Nexus not only mitigates risk but also positions itself to capture opportunities that others might overlook.

The 2025 Venture Landscape

As AI and India’s digital economy continue to grow, Nexus’s dual focus may serve as a model for balanced venture investing. The firm’s ability to navigate both highly technical and rapidly expanding markets demonstrates a long-term vision rooted in adaptability and global perspective. Startups in both AI and India sectors can expect strategic support, operational guidance, and access to a network that spans continents.

Measured Growth in a Hot Market

Nexus Venture Partners’ new $700 million fund illustrates the firm’s deliberate, thoughtful approach to venture capital. By splitting focus between AI and India startups, it hedges against volatility while embracing opportunity. For investors, founders, and the broader tech ecosystem, Nexus’s strategy reinforces the importance of balance, foresight, and the global perspective needed to thrive in 2025’s fast-moving markets.