Chennai : IIT Madras Research Park and Unicorn India Ventures on Thursday announced the launch of a Rs 600 crore deep technology fund, with an additional Rs 400 crore greenshoe option.
Named IITM Unicorn Frontier Fund I, the fund will focus on investing in intellectual property-led and engineering-intensive startups operating in sectors such as robotics, space technology, defence technology, semiconductors and medical technology, according to the announcement. The investments are intended to align with India’s national strategic priorities.
The fund plans to back more than 25 companies using a dual-stage investment strategy. Average initial investments are expected to range between Rs 8 crore and Rs 10 crore. A majority of the portfolio will comprise early-stage deep tech startups that have reached Technology Readiness Levels (TRL) 3–4, with follow-on investments planned as companies progress to mid and later stages.
According to the announcement, 60% of the investable corpus will be deployed to build the initial portfolio, while 40% will be reserved for follow-on rounds. The fund has a tenure of 10 years, with a two-year extension option, and is positioned as a source of long-term capital for startups with extended development cycles.
A significant portion of investments will be sourced from the IIT Madras ecosystem, with the remainder drawn from the broader Indian deep tech sector. Unicorn India Ventures will act as the fund manager and lead capital mobilisation efforts, including co-investments, through its network of alumni, family offices, ultra-high-net-worth individuals and institutional investors.
The fund aims to support startups through early commercialisation and scale-up phases, particularly in areas where sustained capital support is required.
