Chennai, Feb 6th: IIT Madras Research Park (IITMRP), India’s first university-based research park and a leading force behind India’s deep tech transformation, and Unicorn India Ventures, India’s leading DeepTech VC Fund, have joined hands to launch a Rs 600 crore deep tech fund. The fund will also have an additional Rs 400 crore as greenshoe option.
IIT Madras —India’s premier engineering institution—has ranked No. 1 for ten consecutive years in the National Institutional Ranking Framework (NIRF) for excellence in academics and innovation, and leads the nation in intellectual property creation, achieving a record average of more than one patent per day. Bolstering the innovation & commercialization capability of IIT Madras is the IITM Research Park which is home to several global R&D labs, Centers of Excellence, and Incubators. IITM Research Park and the IITM Incubation Cell has played a pivotal role in translational research, commercialisation, and nurturing cutting-edge deep tech startups across SpaceTech, Communications, ClimateTech, EVs, Semiconductor, Quantum, and DefenseTech. To further strengthen the innovation ecosystem and accelerate the growth journey for the startups, IIT Madras Research Park has selected Unicorn India Ventures as the Fund Manager for the DeepTech Fund.
The Fund will look to build a portfolio of 25+ companies in IP-led, engineering heavy startups in sectors like Robotics, SpaceTech, DefTech, Semicon, MedTech, etc. that align with national strategic interests.
With an average first investment size of Rs 8-10 crore, the investment strategy will follow a dual stage approach. The fund will be used to invest in early-stage deep tech startups that have reached Technology Readiness Level (TRL) 3– 4 with an aim to identify high-potential innovations to nurture them through the initial commercialization hurdles. To ensure that portfolio companies are not capital starved as deep tech is a long gestation investment business, the fund will also support them with capital at early mid stage where they have reached TRL 5 – 7 to accelerate the development of concept proven technologies. A part of the corpus would be assigned to select early late-stage companies that reach TRL 7 – 9 with a proven product tech and need support with accelerated scale up and market penetration.
Dr Kamakoti Veezhinathan, Director of IIT Madras and the man behind the Shakti micro-processor says “Science and technology will play a crucial role in the growth story and towards India becoming Viksit Bharat 2047, focusing on technology sovereignty, AI, semiconductors, defencetech and quantum technology. The need of the hour to reduce reliance on technology imports and strengthen indigenous capabilities. IIT Madras has been in forefront of this wave for over a decade and this Fund is the next logical step for us.”
Natarajan Malupillai, Group CEO of IITM Research Park, says, “India’s deep-tech ecosystem is at a pivotal moment, driven by supportive policies, sustained R&D investments, and a strong entrepreneurial aspiration among our youth. This fund will accelerate the scale-up of mission-driven, globally competitive startups while strengthening India’s culture of innovation & entrepreneurship. We are pleased to partner with Unicorn India Ventures to advance India’s deep-tech leadership—imagining, designing, and building in India for the world.”
Bhaskar Majumdar, Managing Partner, Unicorn India Ventures, says, “It is an honour to be selected by IITM & IITMRP, which have been the backbone of deep tech innovation in India. With our proven understanding of deep tech, we believe we have the resources and the network to support early-stage deep tech companies. As an active deep tech investor, we have already built a portfolio of nearly 30 companies and this new fund in partnership with IITMRP comes at the right time as we have met numerous innovative deep tech companies in the last 2 years. India has the talent, capital and patient investors like us and IITM to pool in our collective knowledge, resources and industry connections to help the next generation of deep tech founders.”
The fund will deploy 60% of the investable corpus to build the initial portfolio and reserve 40% for follow-on rounds to ensure that there is enough “Patient Capital” to back winners through the “Valley of Death”. Significant portion of the companies will be sourced from IITM’s ecosystem and balance from the wider Indian deep tech ecosystem.
Unicorn India Ventures, as the fund manager will leverage its ability to mobilise capital beyond the primary fund corpus and build a robust co-investment engine to ensure that portfolio companies are never capital starved. The Fund will take the lead in raising the corpus from IITM alumni, and its global network of LPs comprising family offices, UHNIs, and large Indian institutions.