Novastar Partners has entered the Indian startup ecosystem by backing A Junior VC, a venture capital fund focused on pre-seed investments led by Aviral Bhatnagar. This marks Novastar's maiden foray into India's early-stage venture space.
- Novastar becomes LP in pre-seed focused AJVC
- AJVC invests ₹1.5 Cr for 9% in early-stage startups
- Novastar to support follow-on rounds and operations
What happened
Novastar Partners, a private equity firm founded in 2025 in India, has taken its first investment in the country by becoming a limited partner in A Junior VC (AJVC), a venture capital firm led by Aviral Bhatnagar focused on pre-seed stage startups. AJVC was established in 2024 and closed its maiden fund at ₹200 crore last year. To date, AJVC has invested in 32 startups and typically invests ₹1.5 crore for around 9% equity at the earliest stages of venture formation.
AJVC works closely with the founders it backs, helping them with product refinement, hiring strategies, sales and marketing support, and legal and compliance guidance. Novastar’s backing will also enable AJVC and its portfolio companies to access follow-on funding rounds, networking opportunities, and direct operational support.
Why it matters
This partnership represents Novastar’s strategic entry into the Indian venture capital market with a focus on early-stage investments. By investing in a fund that specializes in pre-seed startups, Novastar is positioning itself to access innovation at the ground level and support startups through their earliest growth phases. The move reflects growing investor appetite for pre-seed and idea-stage companies in India’s booming startup ecosystem.
Novastar’s approach aims to create a diversified portfolio of startups by partnering with funds that have proven models and strong networks in the venture ecosystem. The collaboration also aligns with Novastar’s broader investment thesis to allocate about 15% of its capital to early-stage investments while maintaining a primary focus on growth-stage and late-stage ventures.
What to watch next
Market participants will be closely watching for further details on Novastar’s fund-raising progress and its deployment plans, including how much capital it allocates towards early-stage ventures like AJVC. Novastar’s managing partner, Dhruv Jhunjhunwala, has indicated upcoming announcements on additional investments across funds and companies, signaling growth in their India-focused venture strategy.
Startups backed by AJVC could benefit materially from enhanced access to capital and operational expertise through Novastar’s involvement. Observers should monitor how effectively the partnership drives follow-on funding rounds and supports AJVC’s portfolio companies in scaling and navigating subsequent growth milestones.