In a strategic move that diverges from the current venture capital obsession with artificial intelligence, Nexus Venture Partners has announced a new $700 million fund with a balanced investment approach.
The firm, known for backing successful startups like Zepto, Rapido, and Postman, is allocating half of the fund to promising startups in India while directing the remaining capital toward AI, enterprise, and consumer sectors in both India and the US.
Why Nexus is Taking a Balanced Approach
This decision reflects Nexus’ cautious stance on overcommitting to the AI hype, opting instead for a diversified portfolio to mitigate risks associated with market bubbles.
Historically, Nexus has played a pivotal role in India’s startup ecosystem, with its previous $700 million fund in 2023 supporting a range of sectors including fintech, SaaS, commerce, and AI.
The firm’s track record includes early investments in companies that have become household names, showcasing its ability to identify and nurture high-potential ventures in emerging markets like India.
Impact on India’s Startup Landscape
By dedicating 50% of the fund to Indian startups, Nexus is reinforcing its commitment to fostering innovation in one of the world’s fastest-growing economies.
This move comes at a time when India has seen over $12.1 billion in new funds launched for startups in 2025, signaling robust investor confidence in the region’s potential.
The focus on India also aligns with global trends, as tech giants like Google and Accel have recently intensified their AI and startup investments in the country, viewing it as a critical hub for innovation.
Future Implications for AI and Beyond
While Nexus isn’t going all-in on AI, its allocation of funds to this sector indicates a recognition of its transformative potential, balanced with a pragmatic approach to avoid overexposure.
Looking ahead, this strategy could set a precedent for other venture firms to diversify investments rather than chasing the latest tech trend, potentially stabilizing the volatile VC landscape.
For India, sustained investments from firms like Nexus could accelerate the growth of its startup ecosystem, positioning it as a global leader in technology and innovation over the next decade.
Alfred Lee
