Aum Ventures has announced the first close of its second fund, securing Rs 225 crore for its targeted Rs 750 crore India Innovation Fund II. This new capital is earmarked for early-stage Indian deeptech startups, signaling strong investor confidence in the nation's burgeoning technology sector. The fund will focus on strategically critical areas including semiconductors, spacetech, and artificial intelligence.
Fund Details and Investment Strategy
The India Innovation Fund II aims to build a portfolio of 25 to 30 companies, with a total corpus target of approximately $80 million. Aum Ventures will write initial cheques ranging from $750,000 to $2 million for startups at the pre-seed and seed stages. Capital will also be reserved for follow-on investments in subsequent Series A and Series B rounds to support portfolio growth.
International Confidence and Proven Track Record
A significant portion of the initial capital, over 65 percent, was committed by international limited partners from the US, Middle East, and other key markets. This global backing is bolstered by the impressive performance of Aum's first fund, which delivered a 2.23x gross multiple on invested capital. The firm's debut fund also achieved a notable 53 percent gross internal rate of return.
The firm's investment thesis is exemplified by its early backing of Skyroot Aerospace, a portfolio company from its first fund. Skyroot recently achieved a $1 billion valuation and successfully launched the first privately developed Indian rocket into orbit. This success story highlights Aum's ability to identify and nurture high-potential companies in capital-intensive sectors.
Aligning with National Strategic Goals
The launch of this fund coincides with a significant push from the Indian government to foster a robust deeptech ecosystem. National initiatives like the Rs 1 lakh crore Research, Development and Innovation Fund are designed to de-risk private investment in high-tech R&D. These policies create a fertile ground for the types of ventures Aum Ventures aims to support.
This supportive environment is crucial for deeptech startups, which often face longer development timelines and require substantial capital before reaching commercialization. The government has recognized this by creating a dedicated Deep Tech Startup category and launching programs like Semicon 2.0. This broader institutional support complements the influx of private capital from firms like Aum Ventures.
A Vision for Global Innovation
Chetan Mehta, founding partner at Aum Ventures, articulated a vision to empower Indian entrepreneurs to build globally competitive companies. The firm aims to help transition Indian innovation from the laboratory floor to international markets. This ambition reflects a growing confidence in India's capacity to solve complex challenges for a worldwide audience.
Aum Ventures' new fund represents a pivotal development for India's deeptech landscape, combining private capital with strategic government support. By focusing on nascent yet critical technology sectors, the firm is well-positioned to cultivate the next wave of disruptive Indian startups. The successful first close of India Innovation Fund II underscores a strong belief in the nation's potential to become a global deeptech powerhouse.