Aum Ventures Raises ₹225 Crore in Fund II Close to Power India's Deeptech Surge

Aum Ventures Raises ₹225 Crore in Fund II Close to Power India's Deeptech Surge​

Aum Ventures has successfully secured ₹225 crore in the first close of its second innovation fund, the India Innovation Fund II. This significant funding bolsters the firm's capacity to support startups focused on critical deeptech areas like spacetech, AI, semiconductors, and advanced manufacturing.

The Fund II, which targets a total corpus of ₹750 crore (approximately $80 million), is set to accelerate the growth of India's burgeoning deeptech ecosystem. Over 65% of the commitments received during this initial phase came from international limited partners across global markets, including strategic investors and family offices in the US and the Middle East.

Targeting Strategic Deeptech Sectors​

Aum Ventures emphasized that Fund II will be strategically deployed into sectors where India is rapidly building critical national capabilities. This includes SpaceTech, artificial intelligence (AI), semiconductors, defence technology, robotics, energy transition, and advanced manufacturing.

The firm intends to invest in 25-30 companies throughout the fund's lifecycle. Initial investment cheques are projected to range from $750,000 to $2 million, with dedicated capital reserved for follow-on funding through Series A and Series B rounds.

Chetan Mehta, founding partner at Aum Ventures, stated that their ambition is "to back exceptional Indian entrepreneurs from the earliest stages and help them build global companies; companies that don't just solve for India, but solve for the world."

Building on a Proven Track Record​

The launch of Fund II builds directly upon the successes achieved by the inaugural fund, launched in 2023. Aum Ventures reported impressive returns from its first portfolio, citing a gross multiple on invested capital (MOIC) of 2.23x and a gross internal rate of return (IRR) of 53%.

The firm noted that two companies in Fund I achieved valuation increases exceeding 14 times their entry valuation, while two others saw valuations rise more than 10 times. This performance demonstrates the efficacy of Aum Ventures' early-stage investment thesis.

Portfolio Strength and Ecosystem Support​

Aum Ventures’ portfolio showcases a deep commitment to India’s strategic tech landscape. The firm was an early institutional investor in Skyroot Aerospace, which became India’s first spacetech unicorn and recently launched its Vikram-1 rocket.

Other key companies within the Aum Ventures ecosystem include Azimuth AI, Cosmoserve Space, Sanyark Space, Sully.ai, and Latentai. Additionally, Aum Ventures successfully exited an investment in Sharang Shakti, which was acquired by LAT Aerospace.

The firm goes beyond capital provision, offering substantial non-financial support. Aum Ventures commits to providing portfolio companies with access to strategic partnerships, talent, market connections, and industry expertise across India, the US, Israel, and the Middle East.

De-risking Deeptech Investment​

As global interest in India's deeptech space intensifies, Aum Ventures highlights its foundational approach. Mehta added that when they first started investing in DeepTech several years ago, sectors like space and semiconductors were still emerging from India. Now, these areas are recognized as strategic priorities by governments and investors worldwide.

Aum Ventures’ philosophy remains focused on backing founders tackling complex engineering challenges with long-term capital, ensuring their support empowers entrepreneurs to access global markets effectively.