IIT Madras, Unicorn India Ventures Mark First Close Of Fund I At ₹450 Cr

IIT Madras, IIT Madras Research Park (IITMRP), and Unicorn India Ventures have announced the first close of their deeptech-focused IITM Unicorn Frontier Fund I at ₹450 Cr (about $46.9 Mn). 

The fund has already deployed nearly ₹55 Cr across four startups — Hathor, Quanastra, Triolt Energy, and Carbelim.

Launched in February, the fund has a base corpus of ₹600 Cr and a ₹400 Cr greenshoe option, allowing it to raise up to ₹1,000 Cr (about $104.4 Mn). It is targeting a final close by December 2026.

The fund’s backers include IIT Madras alumni and family offices, with institutional investors and banks expected to participate by the final close. 

Managed by Unicorn India Ventures, the fund aims to build a portfolio of 25 startups, with cheque sizes ranging from ₹15 Cr to ₹25 Cr.

Most of its investments will target early-stage deeptech startups at technology readiness levels (TRLs) 3-4, covering proof-of-concept development and laboratory validation.

Its six focus areas are defence tech, spacetech, semiconductors, manufacturing technology, robotics, and automation, AI infrastructure and GenAI, and healthtech. The fund, in a statement, said it would assess potential investments for their export opportunities, ability to replace imports, and contribution to domestic technological capabilities.

IITM Unicorn Frontier Fund’s First Four Bets 

Among its initial investments, Chennai-based Hathor is developing semi-cryogenic and cryogenic rocket engines for small and medium satellite launch vehicles.

Delhi-based Quanastra is building single-photon detection systems and quantum instrumentation for research and industrial applications.

Triolt Energy develops lithium-ion battery cells for drones and fast-charging electric mobility applications, while Carbelim uses microalgae technology in carbon capture and air purification systems.

Beyond investments from the fund, Unicorn India Ventures plans to mobilise additional capital through co-investments to support portfolio startups’ funding needs.

Deeptech Investments Gather Pace

The first close follows Unicorn India Ventures’ ₹1,200 Cr final close of its third fund in February, exceeding its ₹1,000 Cr target. The fund invests across areas including semiconductors, quantum sensing, defence tech, and spacetech.

Other investors have also announced dedicated funds for these sectors. On September 18, Asiana Fund and Taiwan-based JC Capital launched a ₹1,000 Cr fund targeting advanced manufacturing and robotics, semiconductors and computing, materials and sustainability, and aerospace and defence.

Meanwhile, IIT Madras Research Park has been a significant contributor to the country’s deeptech innovation space, having incubated over 480 deeptech startups, 190 of which are now commercially active. Of these, two startups have reached unicorn valuation — Ather Energy and Uniphore. 

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