Atomic Capital, a venture capital firm based in Mumbai, has closed its first fund at over 400 crore rupee (US$48.19 million) to invest in early growth-stage Indian startups across consumer, consumer-tech, and consumer-enabler sectors.

The fund targets startups in categories such as food and beverages, personal care, apparel, logistics, and ecommerce SaaS.

Atomic Capital plans to back 10 to 12 companies, with initial investments ranging from 10 to 30 crore rupee (US$1.20-3.61 million) and some capital reserved for follow-on funding.

The fund reached its first close at 155 crore rupee (US$18.67 million) in 2024 and has since fully closed after receiving additional commitments.

So far, Atomic Capital has invested about 50 crore rupee (US$6.02 million) in four startups: ConsciousChemist, Doodhvale Farms, Rio Beverages, and Anny.

The firm is evaluating over 20 more companies and has issued a term sheet for a potential fifth investment.

🔗 Source: Atomic Capital

🧠 Food for thought

1️⃣ Small-ticket focused funds benefit from India’s deal volume surge

Atomic Capital’s strategy of writing Rs 10-30 crore cheques aligns well with the current market dynamics driving India’s VC recovery.

Small and medium-ticket deals constituted about 95% of the 1,270 total deals in 2024, compared to 880 deals in 2023 1. This 44% jump in deal volumes was primarily driven by the cheque sizes that Atomic targets.

The fund’s plan to build a concentrated portfolio of 10-12 companies with these ticket sizes positions them effectively within this high-activity segment of the market.

This trend suggests that while megadeals grab headlines, significant momentum in Indian VC is occurring at the early growth stage where Atomic operates.

2️⃣ Consumer-focused funds emerge during a challenging fundraising environment

Atomic’s successful Rs 400 crore raise stands out against a backdrop of declining VC fundraising activity across India.

Overall VC fund-raising dropped approximately 35% to $2.7 billion in 2024—the lowest since 2020 1. This makes Atomic’s ability to close their maiden fund particularly notable.