V3 Ventures, the early-stage investment firm backed by Belgium-based family office Verlinvest, plans to deploy Rs 250–300 crore annually in India’s consumer startup ecosystem, at a time when funding activity in the segment is showing early signs of recovery.
The firm, which invests from seed to Series A, deployed about Rs 250 crore last year across 12 companies. Its portfolio includes SuperYou, a protein brand co-founded by actor Ranveer Singh, supplement brand Earthful, and low-calorie dessert maker Go Zero.
“India is growing too fast for an early-stage investor to slow down,” says Arjun Vaidya, co-founder of V3 Ventures, in an interview with Fe. He added that much of the funding slowdown in the consumer space has been in growth and later stages, where macro uncertainties start affecting the businesses.
Within the consumer ecosystem, V3 Ventures is also writing smaller pre-seed cheques of Rs 2.5–4 crore, particularly in niche beauty and personal care segments. It has backed brands such as Antinorm, Be Clinical and Laani.
Vaidya said the firm is increasingly prioritising early entry into high-potential consumer brands, especially in fast-scaling categories such as beauty and personal care, where valuations can rise sharply in a short period.
“In some cases, by the time a company raises its next round, investors are paying 12-15 times sales, which is not a risk we are comfortable taking,” he said. “These companies are so young that from the time of signing the term sheet to the time of investment, the company may double in size and the multiple looks very different.”
This strategy reflects a broader shift towards backing companies at an earlier stage, particularly in niche segments that can scale to Rs 100–200 crore in revenue and eventually offer strategic exit opportunities.
These trends come at a time when funding in internet-first consumer brands is beginning to pick up after a slowdown. According to data from Tracxn, startups in this segment raised $264 million across 92 rounds between January and April this year, compared to $222 million across 151 rounds in the same period last year. For comparison, in 2024, companies had raised $214 million, while 2023 had seen $401 million raised.
The data suggests a trend towards fewer but larger deals, mirroring a broader pattern across sectors. Vaidya attributed this to increased follow-on investments in maturing portfolio companies, along with a decline in smaller, angel-led syndicate deals following regulatory changes. As startups funded in earlier cycles scale up, they are drawing larger cheques, even as new investments remain selective.
V3 Ventures was started in April 2022 and has backed companies such as audio series startup Kuku FM, Salad Days, Jewelbox, skincare brand Deconstruct, travel tech startup Hosteller, and online plant store Ugaao.