Transition VC, an energy transition-focused venture capital firm, has announced the launch of Fund II with a target corpus of ₹1,500 crore. According to reports from The Hindu BusinessLine, Business Standard, and Economic Times, the fund will invest $2–5 million in approximately 20 engineering-led startups over a four-year deployment period beginning in Q3 FY27. The fund will continue investing across the energy transition value chain while expanding into adjacent sectors such as advanced manufacturing and application engineering. The ₹1,500 crore fund signals growing investor conviction in India's capital-intensive climate tech startups and will look to build the backbone of India's energy transition.
The launch follows the successful deployment of Fund I, which closed at ₹723 crore, exceeding its initial target of ₹400 crore. As reported by The Hindu BusinessLine, Business Standard, and Economic Times, within three years, the fund has delivered a 57 per cent IRR and generated over 3x MOIC. The fund is targeting 1x DPI over the next three years and has recorded zero write-offs, with several companies already profitable, securing follow-on funding, and scaling towards ₹100 crore-plus annual revenues. In its initial fund, Transition VC invested in 17 startups including CIMware, Comminent, Matel, EMO, HYDGEN, Dynolt and Promethean with cheque sizes typically ranging between $500K to $1 Mn. The firm claims to have fully deployed its first fund.
According to The Hindu BusinessLine, Business Standard, and Economic Times, Fund II will focus on the 'missing middle' of venture capital—companies that have proven technical feasibility and early commercial traction but are yet to achieve product-market fit at scale. The fund will selectively evaluate emerging opportunities in nuclear, geothermal and next-generation energy infrastructure as part of its evolving investment strategy. With Fund II, Transition VC will continue investing in energy transition startups while expanding its focus to advanced manufacturing and application engineering. The firm will also selectively evaluate opportunities in semiconductors, nuclear energy, geothermal technologies and next-generation energy infrastructure. Rather than investing in competing businesses, Transition VC aims to build a complementary portfolio spanning different layers of the energy and industrial value chain, enabling portfolio companies to benefit from shared technical expertise, commercial partnerships and ecosystem synergies over time.
Raiyaan Shingati, Co-Founder and Managing Partner at Transition VC stated that India is uniquely positioned to lead the energy transition by combining one of the world's largest domestic markets with globally competitive engineering talent and cost-efficient manufacturing. Speaking to Business Standard, Shingati confirmed that the upcoming fund will invest $2-5 million in approximately 20 engineering-led startups over a four-year deployment period beginning in Q3 FY27. Shoeb Ali, Co-Founder and Managing Partner, emphasized that with Fund II, they're expanding focus by backing companies that are not only innovating in energy but also manufacturing from India for global markets. Shantanu Chaturvedi, Partner at Transition VC highlighted that successful deep-tech investing comes down to three key factors: knowing when technology is ready for commercial adoption, understanding whether it can become a large, economically viable business, and backing founders with resilience to navigate long product development cycles.
According to The Hindu BusinessLine, Business Standard, and Economic Times, the fund has already received continued participation from several existing investors, with multiple Fund I limited partners increasing their commitments. The fund is witnessing strong interest from global institutions, corporate investors and family offices with deep expertise across the energy, engineering and industrial sectors. This demonstrates continued confidence in Transition VC's investment approach and the growing opportunity in India's energy transition sector. The launch comes as investors continue to increase their exposure to industrial deeptech startups, with PE firm Lightrock unveiling a $500 Mn energy-focused fund, Accelerate7, and several investors launching dedicated climate and energy transition funds over the past year.
