Aum Ventures has successfully raised ₹225 crore in the first close of its second India-focused innovation fund, as reported by the company on August 10. The fund, named India Innovation Fund II, has a target corpus of ₹750 crore, equivalent to approximately $80 million. More than 65% of the commitments in the first close came from international limited partners across the US, Middle East and other global markets, including family offices, entrepreneurs and strategic investors. According to ETEntrepreneur, the new fund will focus on sectors including spacetech, artificial intelligence, semiconductors, aerospace, defence technology, robotics, energy transition and advanced manufacturing, with an emphasis on IP-led businesses that can build globally competitive technology from India.
The fund will primarily invest at the pre-seed and seed stages, with initial cheques ranging from $750,000 to $2 million. According to Aum Ventures, it plans to invest in 25-30 companies over its lifecycle and will reserve capital for follow-on investments through Series A and Series B rounds. The fund will focus on sectors where India is building strategic capabilities, including SpaceTech, AI, semiconductors, aerospace, defence technology, robotics, energy transition and advanced manufacturing. As per ETEntrepreneur, the fund will particularly target IP-led businesses that can develop globally competitive technology from India. "The successful first close of India Innovation Fund II reflects the confidence our investors have placed in our team, our investment philosophy and, most importantly, the founders we back," said Chetan Mehta, Founding Partner at Aum Ventures.
The second fund builds on Aum Ventures' inaugural fund, launched in 2023. The first fund has delivered a gross multiple on invested capital (MOIC) of 2.23x and a gross internal rate of return (IRR) of 53%, as reported by the firm. Two portfolio companies have recorded valuation increases of more than 14 times their entry valuation, while two others have seen valuations rise more than 10 times. Fund I's portfolio has also attracted follow-on investments from global investors including GIC, Temasek and Accel, as well as strategic investors such as Cyient Semiconductor. The firm's portfolio includes Skyroot Aerospace, Azimuth AI, Cosmoserve Space, Sanyark Space, Sully.ai and Latentai.
Aum Ventures was an early institutional investor in Skyroot Aerospace, which became India's first spacetech unicorn and recently launched its Vikram-1 rocket. The firm's portfolio includes Azimuth AI, Cosmoserve Space, Sanyark Space, Sully.ai and Latentai. The firm recorded an exit from Sharang Shakti, which was acquired by LAT Aerospace. Aum Ventures said it had invested in five spacetech startups before the sector began attracting mainstream investor attention. According to ETEntrepreneur, the firm will also support portfolio companies beyond capital through access to global markets, strategic partnerships, talent and industry expertise across India, the US, Israel and the Middle East.
This fundraising comes amid a broader wave of capital flowing into Indian deeptech, with asset management firm Piper Serica marking the first close of its ₹800 crore Bharat Tech Fund at ₹300 crore around the same time. Reports suggest Groww's cofounders are firming up plans for a ₹400-500 crore fund specifically targeting seed and early-stage consumer deeptech startups. According to Chetan Mehta, founding partner of Aum Ventures, the firm's ambition is to back exceptional Indian entrepreneurs from the earliest stages and help them build global companies. The government has extended Startup India benefits for deeptech startups out to 20 years and raised the turnover eligibility threshold from ₹200 crore to ₹300 crore. The Centre has also approved India Semiconductor Mission (ISM) 2.0 with a massive ₹1.27 lakh crore outlay covering chip design, equipment, and advanced manufacturing. India's deeptech market is projected to grow roughly 2.5X, from an estimated $9-12 billion in FY25 to around $30 billion by 2030.
