Activate, led by former Haptik CEO Aakrit Vaish, has closed its inaugural fund at $105 million, aiming to boost AI-native startups from inception through growth stages in India’s rapidly expanding AI ecosystem.
- Fund closes at $105M, 125% above target
- Targets 25-30 AI startups from pre-seed to growth
- Partners include NVIDIA, OpenAI, and major VCs
What happened
Activate, a venture capital firm founded by Aakrit Vaish and Pratyush Choudhury in December 2025, announced the final close of its first fund at $105 million. This includes an $85 million flagship early-stage fund and a $20 million growth vehicle. The fund was closed within a year of launch and raised 125% above its original target. Its limited partners comprise over 50 founders and AI researchers, global VC general partners, family offices, corporates, and enterprises.
Since its initial close at $75 million in December 2025, Activate has made 10 investments, primarily in stealth-mode AI startups working on consumer AI, AI-led services, and frontier technologies. The fund focuses on backing AI-native startups at the earliest stages, from ideation to incorporation, with investments typically between $500,000 to $3 million. Notable backers include Vinod Khosla, General Catalyst, and key Indian tech entrepreneurs.
Why it matters
Activate’s successful fundraise and deployment signal intensified investor confidence in India’s AI startup ecosystem. AI is emerging as a major theme in Indian venture capital with a 4X increase in funding year-on-year, reaching $676 million in the first half of 2026 alone. Institutional investors are increasingly focusing on AI with dedicated funds and growing partnership networks.
The fund’s approach of supporting startups through early ideation, product development, and fundraising, along with providing access to global technology partners such as NVIDIA, OpenAI, Anthropic, and cloud providers, offers a comprehensive ecosystem. This could accelerate the growth and innovation potential of India’s AI ventures while building a robust community of over 15,000 technical practitioners.
What to watch next
Monitor the startups Activate backs in stealth as they prepare to unveil new AI applications and technologies. The firm plans to support 25-30 companies focusing on foundational AI models, physical infrastructure, and innovative AI applications. Their success will help validate Activate’s early-stage, founder-centric investment model and influence the broader Indian AI startup landscape.
Watch how Activate’s partnerships with tech giants and its portfolio companies’ access to significant cloud credits and open-source AI models impact their technological capabilities and scaling potential. Additionally, Observe how other institutional investors and funds, like Bajaj Finserv and Accel, continue to deploy capital aligned with India’s AI momentum, potentially driving competition and collaboration in the market.