IIT Madras, Unicorn India Ventures mark first close of Rs 1,000 crore deeptech fund
The fund has already deployed nearly Rs 55 crore across four deeptech startups.
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IIT Madras and venture capital firm Unicorn India Ventures have raised Rs 450 crore in the first close of their deeptech fund that seeks to raise Rs 1,000 crore.
The IITM Unicorn Frontier Fund-I, launched by IIT Madras, IIT Madras Research Park and Unicorn India Ventures, achieved its first close three months after receiving approval from the Securities and Exchange Board of India (Sebi). The fund is targeting a final close by December 2026.
The Rs 1,000-crore target corpus includes a Rs 400-crore greenshoe option. The first close has primarily been backed by IIT Madras alumni and family offices, with institutional investors, corporates and banks expected to participate before the final close.
Unicorn India Ventures will manage the fund, while IIT Madras Research Park will serve as its research and incubation partner.
The fund has already deployed nearly Rs 55 crore across four deeptech startups: Chennai-based spacetech company Hathor, Delhi-based quantum startup Quanstra, battery technology startup Triolt Energy and Carbelim, which is developing carbon-capture and air-purification systems using microalgae technology.
The fund plans to build a portfolio of around 25 startups focused on intellectual-property-led and engineering-heavy technologies. It will primarily back early-stage companies at Technology Readiness Levels (TRL) 3-4, a stage where technologies have moved beyond basic research but are still being developed and tested before commercial deployment.
The average investment is expected to be between Rs 15 crore and Rs 25 crore per startup, with a significant portion of the fund reserved for follow-on rounds.
The fund's focus areas include defence technology, space, semiconductors, manufacturing, robotics and automation, AI infrastructure and health technology. Investments will also be evaluated for their potential for global exports, import substitution and strategic technological advantage.