Hearth Ventures launches venture fund for creative, cultural and circular economy enterprises

Hearth Ventures, announces the launch of venture capital fund designed to empower country’s creative and cultural sectors. This fund aims to provide strategic investments and comprehensive support to small and medium-sized for-profit enterprises operating within these domains, with a focus on growing off-farm livelihoods in rural India. Building upon its recent registration as a Category I AIF (Alternative Investment Fund) by the Securities and Exchange Board of India (SEBI), Hearth Ventures plans to deploy an estimated Rs 250-350 crore over the next 3-5 years.

Backed by Vipul Jain, Technology entrepreneur, the fund has the support of early investors William Bissell – Managing Director of Fab India, and Yogesh Chaudhary – Director at Jaipur Rugs. Hearth Ventures is founded by Vinayak Kamath, Shefali Chhachhi and Vipul Jain. The team aims to achieve its first close of Rs 100 crore by the end of 2023.

“We see a $120 billion domestic market and a $1.5 trillion global market for the creative and cultural sector with many tailwinds. This sector not only presents a significant economic opportunity, but also impacts several SDG’s. Our research, investments made to date and the deal pipeline validates our thesis that there are many great entrepreneurs in the sector who can build profitable and fast-growing businesses. This sector remains critically underserved for growth capital and we hope to change that and pave the way for building a vibrant start-up ecosystem” said Vipul Jain, Founding Partner, Hearth Ventures.

Commenting on his support to this new venture fund, William Bissel, Managing Director of Fab India said Hearth’s mission to invest in and support cultural and creative industries gain access to markets and scale is a vital one.

Echoing these sentiments Yogesh Chaudhary, Director at Jaipur Rugs added, “Jaipur Rugs today serves customers across the world while working with over 40,000 artisans, mostly women across India. We are delighted to support Hearth’s vision of creating many more of such enterprises and reimagining the sector.”

The fund will invest at Pre-series A and Series A stages, after comprehensive due diligence by agencies, with affirmative board rights. With a focus on portfolio companies achieving double-digit revenue growth and efficient capital utilisation, the fund aims to outperform the median of other venture funds. Hearth Ventures will invest in fashion, crafts, design & décor, sustainable apparel & accessories, art jewellery & consumer facing regenerative businesses such as recyclable packaging, and related sectors, which represent a $350bn domestic market opportunity by 2030.

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