Venture capital firm Together Fund, founded by Freshworks' Girish Mathrubootham and Eka Software's Manav Garg, is preparing for the final close of its $150 million Fund-II by June. The fund, which aims to capitalize on the growing artificial intelligence (AI) revolution in India, will focus on investing in AI-driven startups. Together Fund's second fund plans to back 19 to 20 promising firms in the AI space, providing the capital necessary to fuel innovation and growth within this fast-evolving industry.

Launched in 2021, Together Fund has already made strides in the investment ecosystem, having backed 31 startups across its two funds. The first fund, with an $85 million corpus, helped fuel early-stage companies, setting the foundation for the firm’s success. With Fund-II, Together is doubling down on AI, one of the most promising sectors in global tech, as companies around the world race to build scalable AI solutions.

The decision to focus Fund-II on AI comes at a time when Indian startups in the application-layer space are gaining significant traction. Manav Garg, co-founder of Together Fund, highlighted the enormous potential for Indian AI startups, especially as they are increasingly targeting the US market, where demand for AI-driven services is surging. Garg emphasized that AI software companies globally are rapidly reaching $100 million in revenue, and India has the right talent and resources to achieve similar success.

Despite challenges such as the slow pace of investment in India’s AI sector, Garg remains optimistic about the future. In a recent interview, he pointed out that while funding in the AI segment has seen a slight dip in 2024, the number of deals and new company formations are on the rise. According to Venture Intelligence, Indian AI startups raised $747 million in 2024, a 26% decline from the previous year, but with a noticeable increase in deal activity. This trend signals that investors like Together Fund are bullish on the AI space and are positioning themselves to support the sector’s next wave of growth.

With the final close of Fund-II expected in June, Together Fund is well-positioned to capitalize on India's AI boom. By identifying high user adoption, revenue growth potential, and a strong market fit, Girish Mathrubootham and Manav Garg are helping to build a future where India leads the way in AI innovation. The closing of Fund-II will mark an exciting new chapter for Together Fund and its ambitious plans to support AI-driven startups on a global scale.