NIIF Secures $750 Million for Private Markets Fund to Boost India Tech and AI

National Investment and Infrastructure Fund Limited (NIIF) has successfully secured commitments of $750 million for its Private Markets Fund II (PMF II). This milestone brings the fund closer to its final target of $1 billion. PMF II is the successor to the initial $600 million fund, which is now fully committed across several high-growth sectors. More information about their strategies can be found at niifindia.in.

Anchored by the Government of India with a 49 percent stake, the fund has received substantial backing from prominent international institutions. The Asian Infrastructure Investment Bank and the New Development Bank have both renewed their commitments to the platform. Additional capital has been raised from institutional investors in Japan and India, demonstrating broad international confidence in the regional economy.

The investment strategy utilizes a multi-manager approach to access India's mid-market segments. Approximately 75 percent of the capital is dedicated to third-party venture capital and growth equity funds. The remaining portion is reserved for direct co-investments alongside fund managers to support promising Indian enterprises directly.

A major focus for PMF II is the technology sector and its expanding startup ecosystem. By providing liquidity to venture funds, NIIF is effectively fueling the next generation of AI and software-led innovation. This capital injection is vital for regional tech firms looking to scale operations and compete on a global level.

Beyond technology, the fund targets energy transition, healthcare, and advanced manufacturing. These pillars align with India’s long-term structural growth trends and climate goals. Managing Partner Anand Unnikrishnan noted that the fund serves as a gateway for global investors seeking risk-adjusted returns in segments that are typically difficult to access.

The previous fund, PMF I, has already realized 40 percent of its investments within five years, showcasing the effectiveness of the model. That fund supported over 60 companies through various portfolio partners across the country. With the launch of PMF II, NIIF continues its mission to double its total assets under management to $10 billion by 2029.