New Delhi, Aug. 10 -- Early-stage venture capital firm Aum Ventures has secured Rs 225 crore ($23.6 million) in the first close of its second India-focussed deeptech fund, which aims to raise Rs 750 crore to back startups developing technologies across sectors such as space, semiconductors, artificial intelligence and defence.
More than 65% of the commitments in the first close came from international limited partners (LPs) across the US, the Middle East and other global markets, including family offices, entrepreneurs and strategic investors, according to the firm.
The India Innovation Fund II will invest in 25-30 startups at the pre-seed and seed stages, writing initial cheques of $750,000 to $2 million and reserving capital for follow-on investments through Series A and Series B. The fund will focus on sectors including spacetech, artificial intelligence, semiconductors, aerospace, defence technology, robotics, energy transition and advanced manufacturing.
"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 Aum Ventures founding partner Chetan Mehta. He added that the firm aims to help Indian founders build globally competitive technology companies from the earliest stages.
The new vehicle builds on Aum Ventures' inaugural fund which was launched in 2023. According to the firm, it has delivered a gross multiple on invested capital (MOIC) of 2.23x and a gross internal rate of return (IRR) of 53%. It was also an early institutional investor in Skyroot Aerospace, which recently became India's first spacetech unicorn following the successful launch of its Vikram-1 rocket.
Aum Ventures said its first $30-million fund has also backed companies including Azimuth AI, Cosmoserve Space, Sanyark Space, Sully.ai and Latentai. Its portfolio firms have attracted follow-on investments from investors such as GIC, Temasek, Accel and Cyient Semiconductor.
Founded in 2023, Aum Ventures focuses on early-stage, IP-led deeptech startups founded by Indian entrepreneurs. Through its second fund, the firm plans to deepen its investments in sectors where it sees India building long-term strategic capabilities, while also leveraging its network across India, the US, Israel and the Middle East to help portfolio companies expand globally.
Published by HT Digital Content Services with permission from VC Circle.