Transition VC Closes Debut Fund at ₹700 Crore

Early-stage investor Transition VC has closed its first fund at ₹700 crore, nearly double its initial target of ₹400 crore.

The fund received commitments from institutional investors, corporates, family offices, strategic partners, and industry leaders.

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"We look for scalable tech investments across anything and everything that generates or consumes energy. The scope is broad because every sector needs energy," cofounder and managing partner Shingati said. "This includes mobility, industrial decarbonisation, the hydrogen economy, power electronics, and data centres. AI adds another layer: its growth demands more energy and data centres."

Founded by Raiyaan Shingati and Mohammed Shoeb Ali, Transition VC positions itself as India’s first venture fund focused on the energy transition, supporting engineering-driven deeptech startups working on energy production, storage, distribution, and consumption.

So far, the fund has backed 17 startups and aims to invest in up to 25 companies. Its portfolio includes CIMware, Comminent, Matel, EMO, Hydgen, Dynolt, and Promethean, each operating in different areas of the energy transition sector.

More than half of the fund’s capital has already been committed, and the remaining money will be invested in areas like electrification, energy storage, industrial decarbonisation, alternate fuels and manufacturing, said Shingati.

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Shingati, a chartered accountant, has previously worked at funds including Black Dragon Capital in the US and Mount Judi Ventures in Bengaluru. Ali, who specialises in corporate finance, M&A, and cross-border investments, has worked with MBA Fakhro and Mount Judi Ventures.

The fund’s limited partners are mostly industry insiders, including founders who have built and sold engineering businesses, and current CEOs and CXOs of large companies.

Transition VC invests in startups at the post-product, pre-product-market-fit stage and aims to build an ecosystem within its portfolio by backing complementary companies, not direct competitors, to share insights, supply chains, and talent.

Shingati said the fund’s portfolio companies are progressing well. Five are on track for $8–10 million in revenue, four have reached EBITDA positivity, and acquisition interest is growing. Two uprounds have closed, and two Series A+ term sheets are under negotiation.

The cofounder added that investments are evaluated based on the potential to reach ₹1,000 crore in revenue. For exits, the fund aims for a mixed strategy, targeting at least half the portfolio to be IPO-eligible, meaning companies that cross ₹500 crore in revenue.

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