Unicorn India Ventures closes third fund at Rs 1,200 crore

Deeptech-focused venture capital firm Unicorn India Ventures has closed its third fund at Rs 1,200 crore, exceeding its original target of Rs 1,000 crore.

The fund plans to invest in sectors such as semiconductors, spacetech, and AI infrastructure. The firm said the fund has already gained strong early momentum, with seven to eight portfolio companies raising significant follow-on funding.

“Fundamentally, deeptech is really picking up in India,” Bhaskar Majumdar, founder and managing partner of Unicorn India Ventures, said. The momentum is being driven by structural shifts rather than short-term market cycles, he said.

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The fund will make 20 investments with an average ticket size of 10-15 crore, Majumdar said.

“Deeptech needs capital early,” he said. Also, early-stage cheque sizes are getting larger.

“India has seen one full startup cycle. Many founders today are repeat entrepreneurs with strong track records. Investors are backing the individual as much as the idea,” he said.

Unicorn plans to announce four new investments in the coming months in areas such as quantum sensing, agritech, and spacetech.

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Fund III has seen a change in the firm’s investor mix, with around 33% of the fund coming from international investors, mainly from the US. Unicorn said many of these investors are investing in Indian startups for the first time.

Another key trend in the fund is the rising number of academicians becoming startup founders. Majumdar said four to five companies in Fund III are led by academicians, including one who is still teaching. He said this brings strong technical expertise and a different way of thinking.

He also highlighted that many Indian researchers and experienced professionals are returning from the US. He added that in fields like defence, cryogenics, and military technology, career growth in the US often requires citizenship, which encourages some professionals to return to India.

“Many professionals are unwilling to take US citizenship, so they hit a ceiling in their mid-30s. That’s pushing talent from NASA and defence research back to India, including in areas like quantum computing,” Majumdar said.

Across its three funds, Unicorn India Ventures has invested in nearly 50 companies, with a combined portfolio value of around $5 billion.

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