IIT-Madras Research Park, Unicorn Ventures launch ₹600 Crore Deeptech Fund

The Indian Institute of Technology Madras Research Park (IITMRP), together with Unicorn India Ventures, announced on Friday a ₹600-crore fund to support deep tech startups across India.

Called IIT Madras Unicorn Frontier Fund I, the fund includes a ₹400-crore ‘greenshoe option,’ allowing underwriters to sell 15% more shares if demand is high. In its first phase, it plans to invest in more than 25 startups in areas like robotics, space tech, defence tech, and semiconductors.

Each investment will be around ₹8–10 crore. About 60% of the fund will go to new startups, while 40% will be kept for follow-on investments. The fund was first announced in June last year with a target of ₹200 crore.

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The fund will follow a dual investment strategy, focusing on early-stage deep tech startups at Technology Readiness Level (TRL) 3-4, helping promising innovations overcome early commercialisation challenges.

“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 joint statement said.

Part of the fund will be set aside for select later-stage startups at TRL 7-9 that have a proven product, providing them with capital to scale and expand into the market.

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“This fund will accelerate the scale-up of mission-driven, globally competitive startups while strengthening India’s culture of innovation and entrepreneurship,” IITM Research Park’s Group CEO Natarajan Malupillai said.

The fund manager will raise funds from IIT Madras alumni and global investors including family offices, ultra-high-net-worth individuals and major indian institutions. They may also invest additional capital in promising startups through co-investments, ensuring portfolio companies have ongoing access to funding.

IIT Madras Research Park has played a major role in India’s deep tech sector, incubating over 480 startups, with 190 now commercially active. Two of these, ather energy and Uniphore, have achieved unicorn status.

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