Z47 Launches $400M Fund for India’s Tech Boom
The rebranded venture capital firm Z47, formerly Matrix Partners India, prepares for its first independent fundraise post-separation, targeting India’s thriving tech startup ecosystem.
Summary:
Venture capital firm Z47, which spun off from its US-based parent Matrix Partners last year, is preparing to raise a maiden fund in the range of $300–400 million. The firm is in early-stage discussions and aims to deploy the new fund into India’s fast-growing tech and innovation sectors. This fund will mark its first independent investment vehicle since the split and is expected to launch in 2026.
Z47 Pursues Its Own Course with a $300–400 Million Fundraising Effort
In a significant shift within the Indian venture capital scene, Z47, which has recently undergone rebranding from Matrix Partners India, is aiming to raise its inaugural independent fund following its separation from its US parent company. Multiple sources familiar with the matter confirmed that discussions for the fundraise are underway, with the target corpus estimated between $300 million and $400 million.
The fund is expected to be formally launched sometime in 2026, depending on the market climate and LP (Limited Partner) engagement. With this move, Z47 aims to double down on its belief in India’s technology-led entrepreneurial ecosystem, while also cementing its new identity as an autonomous investment house.
From Matrix to Z47: The Story Behind the Split
The transition of Matrix Partners India to Z47 in late 2023 signified the conclusion of its enduring partnership with the Silicon Valley venture capital firm Matrix Partners. While both entities shared a common lineage and investment ethos, their strategic goals began to diverge over the years.
The separation was friendly and strategically planned. It enabled the Indian team, which had established a robust local presence and gained valuable insights over nearly twenty years, to operate with more independence and pursue its own direction without being limited by a global brand framework.
The new designation, Z47, embodies a daring and forward-looking vision, with “Z” symbolising a new start and “47” likely hinting at India’s innovative path following independence, which commenced in 1947.
A Strong Track Record in Indian Tech
Even before the rebranding, Matrix Partners India (now Z47) had established itself as a formidable force in Indian early- and growth-stage venture capital. Its portfolio features some of the biggest success stories in India’s startup ecosystem, including:
Ola (ride-hailing)
Razorpay (fintech)
Dailyhunt (news & content)
OfBusiness (B2B commerce)
Stanza Living (co-living)
Zetwerk (manufacturing tech)
Over the years, the firm has built deep sectoral expertise across fintech, consumer tech, SaaS, healthtech, and mobility, among others. With the upcoming fund, Z47 is likely to continue focusing on these verticals while expanding into newer emerging areas such as climate tech, deeptech, and generative AI.
Strategy for the New Fund: Double Down on Indian Innovation
The maiden Z47 fund will largely continue its India-first thesis, betting on early-stage companies that are solving complex problems through tech-enabled models. The fund’s structure is expected to follow a multi-stage approach, allowing Z47 to back companies from seed to Series B and beyond.
According to people close to the development, Z47 is already in talks with existing LPs, including institutional investors and family offices who had backed Matrix’s earlier India-specific funds. The firm is also exploring new LP relationships, particularly in the Middle East and Southeast Asia, regions that are increasingly interested in India’s startup boom.
India’s VC Landscape: A New Cycle Emerging
Z47’s fundraise comes at a time when India’s venture capital landscape is in flux. Following a correction in startup valuations and a funding slowdown over the past 18 months, the market is now showing early signs of recovery.
As of mid-2025, investors have returned to the table, albeit with a more cautious and metrics-driven approach. According to data from Tracxn, Indian startups raised $7.5 billion in the first half of 2025, a 15% uptick compared to H2 2024.
Z47 seems well-positioned to capitalise on the next investment cycle, leveraging its brand independence, local team expertise, and sectoral experience.
Team Continuity and Leadership Vision
Z47 is led by a team of seasoned investors who have remained with the firm through its transition. This includes partners who were instrumental in early investments in unicorns like Ola and Razorpay. The team brings not only capital but also mentorship, operational guidance, and strategic clarity to its portfolio companies.
The firm is known for being founder-friendly, maintaining long-term relationships and helping startups navigate regulatory, hiring, and global scaling challenges.
What to Expect in the Coming Months
If the discussions proceed as planned, Z47 could announce the first close of its fund in early to mid-2026. The firm will likely make bridge investments or continue participating in follow-ons using internal reserves or co-investment vehicles until then.
Given its strong pipeline and deep portfolio access, Z47 is also expected to participate in secondary transactions, providing liquidity to early-stage founders and angel investors—a growing trend in India’s maturing startup ecosystem.
Conclusion
Z47’s move to raise a maiden $300–400 million fund is more than just a financial milestone—it is a declaration of intent. With a clear break from its global parent and an unwavering focus on India’s tech future, Z47 is ready to play a leading role in shaping the next generation of Indian unicorns.
This fundraiser will be closely watched by stakeholders across the startup and VC spectrum—not just for its size, but for what it represents: a new era of homegrown, independent venture capital leadership in India.
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The image added is for representation purposes only
