IITM-Unicorn deeptech fund hits ₹450 cr first close with global backing

IIT Madras and Unicorn India Ventures have secured ₹453 crore in the first close of their ₹1,000 crore deeptech fund. Sources indicate that a portion of the capital may have come from overseas investors. The fund has reportedly deployed capital across startups in sectors like space, quantum computing, and energy.

The first close is notable for its size and potential investor composition. If overseas limited partners have indeed participated, it would mark a shift for India-focused deeptech funds, which have historically struggled to attract global capital due to long gestation periods and perceived risks. Recent policy developments in India, such as support for semiconductor and space startups, may be contributing to this change.

The fund’s early deployment suggests a strategic approach, though the specifics of its portfolio remain limited. Whether these startups can progress beyond early-stage development will depend on access to follow-on funding, which remains a challenge for deeptech ventures.

IIT Madras has previously been involved in venture capital through its research park, which has incubated startups over the years. The current fund’s larger target size reflects both ambition and the expanding opportunities in India’s deeptech ecosystem. The involvement of academic institutions in commercializing research is a trend observed in other markets, though its success in India remains to be seen.

Challenges persist, however. India’s deeptech landscape is still developing, with few startups achieving significant scale. The fund’s ability to sustain momentum will depend on its portfolio companies’ progress and the broader availability of capital. Meanwhile, the Indian government’s recent proposal for a Japan-backed deeptech funding corridor could introduce new dynamics, potentially altering the funding landscape for private players.

The fund’s next steps, including a potential second close, will be closely watched. If additional global investors participate, it could signal growing confidence in India’s deeptech potential. For now, the first close represents a step forward, though the path ahead remains uncertain.

Sources: msn.com · financialexpress.com