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Category II AIF in India
Nippon India Digital Innovation (NIDI) Fund 2A
NIDI Fund 2A is a Category II AIF in India with a “Multi Manager Winners” strategy focused on highly curated growth-stage technology start-ups.
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Context
Fund Strategy Context
NIDI Fund 2A operates within a broader venture ecosystem, combining direct investments and fund-of-funds exposure to access high-quality startups across stages.
The goal is to leverage ecosystem access while keeping portfolio construction disciplined—focusing on businesses with strong growth signals, quality sponsorship, and clear pathways to liquidity.
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Performance
Track Record (NIDI Fund I)
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NIDI Fund I demonstrates early traction with strong backing from global institutional investors and a diversified portfolio of venture fund exposures.
From an investor perspective, these early signals highlight sponsor quality and ecosystem access—while reinforcing the need to evaluate outcomes across a full cycle.
Highlights
- Gross MOIC: ~1.61x
- Gross IRR: ~21%
Past performance is not indicative of future results.
Strategy
Multi Manager Winners Strategy
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The fund follows a “Multi Manager Winners” approach—investing selectively in the top-performing companies emerging from leading VC portfolios.
This is designed to combine access advantages with a selection lens focused on business quality and execution strength.
Portfolio Discipline
- Diversified ~10–12 investments
- No blind pool risk
- Independent exit flexibility
Process
Selection Framework
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The fund applies a structured funnel-based selection process, narrowing thousands of evaluated startups into a highly curated portfolio based on growth, unit economics, founder quality, and market opportunity.
The emphasis is on repeatable underwriting—prioritising evidence of sustainable traction, strategic positioning, and clear scaling levers.
Focus
Investment Focus
The strategy focuses on technology-driven businesses across SaaS, fintech, consumer tech, B2B platforms, and digital transformation opportunities.
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Differentiator
Right to Win (Key Differentiator)
NIDI leverages strong Indo-Japan connectivity, enabling portfolio companies to access capital, partnerships, and market expansion opportunities through Japanese corporate networks.
Network Edge
- 50+ startup introductions
- 30+ Japanese corporate connections
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Rationale
Why Invest in NIDI
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The fund combines institutional backing, venture ecosystem access, and structured investment discipline to create differentiated exposure to high-growth opportunities.
For investors seeking Category II AIF exposure to innovation-driven outcomes, the focus is on selectivity, governance-quality networks, and flexibility across liquidity paths.
Liquidity
Exit Strategy
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Multiple exit avenues include IPOs, strategic M&A, secondary transactions, and institutional buyouts, supported by strong investor and corporate networks.
Exit planning is treated as a portfolio-level discipline—balancing timing, market conditions, and alignment with company fundamentals.
Terms
Fund Terms
Structured as a Category II AIF with defined tenure, fee structure, and return expectations.
Key Terms
- Target fund size: ₹500 Cr
- Greenshoe: ₹500 Cr
- Hurdle rate: 10%
- Carry: 20%
- Tenure: till March 2033 (+ extension)
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AIF Overview
Category II AIF in India – Overview
Category II AIFs in India are widely used for private equity, venture capital and structured investment strategies, typically requiring a minimum investment of ₹1 crore.
NIDI Fund 2A is a Category II AIF in India focused on growth-stage technology investments through a multi-manager strategy, aligning with long-term digital innovation opportunities.
FAQ
Frequently Asked Questions
Nippon India Digital Innovation (NIDI) Fund 2A is a Category II AIF strategy designed to invest in a curated set of growth-stage technology start-ups through a differentiated venture ecosystem approach.
Category II AIFs in India are alternative investment funds that invest in private equity, venture capital and structured credit opportunities, typically requiring a minimum investment of ₹1 crore.
The fund follows a ‘Multi Manager Winners’ approach—selectively investing in top-performing companies emerging from leading VC portfolios, combining ecosystem access with disciplined selection.
The strategy focuses on growth-stage technology businesses, typically later-stage venture (e.g., Series B/C), selected based on business quality, unit economics, and market opportunity.
The fund is structured with tenure till March 2033, with a possible extension as per fund documents.
No. Returns are not guaranteed. Investments in AIFs are subject to market risks and performance can vary.
Disclosure
Disclaimer
This page is for informational purposes only and does not constitute investment advice or an offer or solicitation to invest.
If you are exploring Alternative Investment Funds, you may review our overview to understand fund structures and categories on our AIF page.
You can also explore additional curated opportunities in our AIF funds section.
Investments in AIFs are subject to market risks. Past performance is not indicative of future results. Investors should refer to the PPM and consult their advisors before investing.