BOV Capital achieves historic exits in 2025/26, marking a milestone for Sri Lanka’s startup ecosystem. The venture capital firm’s portfolio successes, including Insureme.lk’s Colombo Stock Exchange listing, signal growing investor confidence and global scalability.
Sri Lanka startup ecosystem strengthened as BOV Capital exits and lists ventures
BOV Capital has announced landmark exits from its Dialog Axiata Digital Innovation Fund (DADIF) this year, underscoring the maturity and dynamism of Sri Lanka’s venture capital sector. Among the high-profile exits are IFINITY, a fintech and banking technology firm; Roar Global, a digital marketing and advertising venture; Cultiv8, operating in Agri-Tech; and Insureme.lk, which achieved a public listing on the Colombo Stock Exchange.
These achievements reflect the growing strength of Sri Lanka’s startup ecosystem, highlighting the nation’s emergence as a hub for digital innovation in South Asia. The successful exits also provide strong returns to investors and reinforce confidence ahead of the launch of Fund 3, which is expected in 2026.
Earlier milestones, including exits in Linear Squared (AI/ML) and nCinga (IoT), illustrate BOV Capital’s consistent track record of supporting startups that deliver both economic and technological impact. Current portfolio ventures, including iConic Devices (Industrial IoT), Scybers (cybersecurity), MyDoc (digital health), OMAK (retail POS solutions), and ZigZag (online fashion), demonstrate the breadth and scalability of Sri Lankan startups across sectors.
Backed by Dialog Axiata and managed by BOV Capital, DADIF has become a crucial engine for scalable ventures, focusing on high-growth sectors such as cybersecurity, digital health, and industrial IoT. The fund has played a key role in sustaining ecosystem vitality, attracting capital, and nurturing local talent, thereby driving innovation-led economic diversification.
Managing Partner Prajeeth Balasubramaniam emphasized the significance of these exits, stating, “Since 2009, we have built Sri Lanka’s startup ecosystem, recognizing innovation as key to sustainable development. These exits and Insureme.lk’s listing affirm that local ventures can compete globally, create jobs, and foster resilience. We remain committed to this vital foundation.”
The 2025/26 exits are not only financial successes but also symbolic of Sri Lanka’s capability to produce globally competitive tech ventures. They illustrate the ability of local entrepreneurs to deliver impactful solutions in fintech, digital marketing, Agri-Tech, and insure-tech, while simultaneously generating employment opportunities and contributing to the nation’s digital economy.
Looking ahead, BOV Capital is finalizing Fund 3, with limited partner commitments already secured. Its deployment is contingent on the Sri Lankan government resolving the double taxation issue, anticipated in early 2026. Once operational, Fund 3 will target high-growth tech startups, aiming to cultivate the next wave of globally scalable companies in fintech, industrial IoT, cybersecurity, and digital health.
The firm’s strategic focus on innovation-driven ventures positions Sri Lanka as a regional leader in the digital economy. By systematically supporting startups from incubation to exit, BOV Capital has helped institutionalize venture funding practices, improve governance, and attract international investors. This approach has enhanced local market confidence and contributed to a sustainable ecosystem capable of producing serially successful ventures.
The recent exits and Insureme.lk’s public listing also highlight the role of regulatory and financial infrastructure in enabling high-value transactions. Resolving taxation clarity issues and promoting investor-friendly policies will be critical for scaling Fund 3 and ensuring continued ecosystem growth.
Analysts note that BOV Capital’s success demonstrates a replicable model for emerging markets: a combination of strategic corporate backing, disciplined venture management, and sector-focused investment. By targeting digital innovation, the firm has enabled startups to compete on an international stage, creating measurable economic and social value for Sri Lanka.
Overall, the historic exits in 2025/26 mark a turning point for Sri Lanka’s startup landscape. With strong portfolio performance, growing investor confidence, and the upcoming launch of Fund 3, the country is poised to solidify its position as South Asia’s hub for innovation, entrepreneurship, and technology-driven growth.