Ex-Defence Secretary Ajay Kumar Launches Mounttech Growth Fund For Early-Stage Startups

A former bureaucrat who retired as India's defense secretary in 2022, Ajay Kumar, has entered the venture capital industry.

Ajay Kumar's Rs 250 crore fund, which has received sanction from the Securities and Exchange Board of India (Sebi), has received subscriptions totaling Rs 280 crore and is poised to exercise the green-shoe option for an additional Rs 250 crore.

The fund is predominantly sponsored by Suryakant Dalmia, a board member of Dalmia Securities, and includes numerous other high-net-worth individuals and domestic family offices as limited partners or sponsors.

Ravi Sethia, a former prominent executive in the telecommunications industry, serves as the CEO of the fund, while Ajay Kumar serves as its chairman.

Additionally, the fund has recruited prominent industrialists and business professionals, as well as top retired armed forces officers, to serve as advisors. These individuals include former Indian Navy vice commander SN Ghormade and former Indian Air Force chief RKS Bhadauria.

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The defense ministry offers contracts to develop products and technologies for use by Indian defence forces and provides grants to entrepreneurs building in these sectors under the iDEX program.

iDEX is currently involved with approximately 400 small enterprises and businesses, as indicated by government data. The government has approved the procurement of 35 items, which are estimated to be worth Rs 2,000 crore, thus far.

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Ajay Kumar, Chairman, said: “Almost two-thirds of defense procurement is from domestic companies… and this presents a huge opportunity for Indian startups to build and scale,”

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