Swishin Ventures, founded and led by veteran investor Mahavir Pratap Sharma, has secured a Category I license from SEBI to launch a $20 million investment fund with a $5 million greenshoe option, aiming to nurture and scale startups from India’s often-overlooked Tier‑II and Tier‑III cities.

With more than 35 years of expertise in the Indian startup scene, including as the founding chair of TiE Angel Funding and Global Chair of TiE, Sharma has personally sponsored over 40 enterprises. His goal with Swishin is unmistakable: to close the funding gap in smaller cities, where entrepreneurs receive less than 4% of all venture capital investment, but making up 51% of India’s businesses.

“In recent years, the startup buzz has expanded to Tier‑II and Tier‑III cities,” Sharma said during the fund’s announcement. “They now account for 51 % of the total startups in the country but VC funding is less than 4%.”

Unlocking Latent Potential

High-growth industries including consumer services, BFSI, healthcare, and DeepTech are among the ones Swishin Ventures intends to invest in. In order to guarantee steady growth, the fund will offer seed-stage funding with the option to assist businesses through Series-A.

• Region advantage: About 750 towns are located in India’s smaller cities, which are home to 15% of the nation’s IT talent and 60% of its engineering graduates. Furthermore, these areas have produced 13 of India’s 118 unicorns, demonstrating their potential.

• Market access: 75–80% of e-commerce transactions originate from these locations, demonstrating strong consumer demand and an innovative market.

Sharma noted that affordable local talent and expanding internet infrastructure are key to unlocking scalable business models in these regions. 

Engaging Local Family Enterprises 

A novel element of Swishin’s model is its outreach to family run businesses in smaller towns. These companies, which have historically relied on public market and fixed-income instruments to lodge excess capital, are increasingly looking for alternate investment opportunities.

In order to diversify holdings and take advantage of India’s digital transformation, Swishin wants to encourage them to invest at least 10% of their excess capital in tech-driven companies. A self-reinforcing innovation ecosystem might be fostered and businesses progressively integrated into local economy.

According to Sharma, “funds like Swishin Ventures being locally available” give family offices additional avenues to engage in disruptive innovation.

Strategic Rationale & Expected Impact 

Swishin is one of many committed investors who are focussing on ‘second-tier India‘. NITI Aayog’s unique Tier-II/III startup focus and other government initiatives have already started to stimulate activity in these areas. The disparity in funding is still glaring. By providing patient capital, mentoring, and connections to Series A paths, Swishin aspires to bridge early stage funding shortfalls, anchor startups rooted in their local environments, reduce talent immigration to metro cities and embed a sense of financial sophistication among regional entrepreneurs.

What Lies Ahead 

In the upcoming quarter, Swishin is getting ready for its first closing. In order to increase capital flow and regional goodwill, Sharma has indicated interest in onboarding local family wealth and community institutions.

In locations like Jaipur, Surat, Indore, Lucknow, Patna, and beyond, Swishin Ventures intends to concentrate its efforts on regional scouting by identifying promising startups in industries including fintech, healthcare, consumer services, and DeepTech. In order to give founders solid mentorship and direction, the fund will also take advantage of Mahavir Pratap Sharma’s wealth of experience and his connections within the TiE (The Indus Entrepreneurs) network. Furthermore, by working with regional incubators, venture capital companies, and government-sponsored programs that encourage entrepreneurship in India’s smaller cities, Swishin hopes to establish key ecosystem alliances and establish a strong support network for new businesses.

Redefining India’s Startup Geography

Given that most of India’s technological expertise is produced in smaller regions, which also account for a significant portion of internet-driven activity, Swishin Ventures’ effort represents a pivotal moment in the country’s startup history.

The fund might help transform India’s innovation geography by directing funds and strategic support into underserved areas, encouraging local entrepreneurs and adding inclusivity to India’s startup map.

If the fund gains traction, we may witness a new breed of homegrown business champions rising far beyond the metro confines, potentially altering the long-term balance of India’s startup ecosystem.

Also read: Chowkhat: How Two Ghaziabad Sisters Built a ₹5 Crore Chikankari Brand from Scratch