India Innovation Fund II Announced by Aum Ventures

India Innovation Fund II has been launched by early-stage venture capital firm Aum Ventures with an initial closing at Rs 225 crore. The fund aims for a target corpus of Rs 750 crore (around $80 million) to invest in early-stage startups that create IP-led technology companies in India aimed at global markets.

Investment Highlights

The first closing has seen participation from various existing and new investors, with over 65% of the commitments sourced from international limited partners spanning the US, the Middle East, and other regions. This diverse group of investors includes family offices, entrepreneurs, and strategic backers.

Support for Portfolio Companies

Aum Ventures aims to enhance the capabilities of its portfolio companies by providing access to global markets, facilitating strategic partnerships, and offering necessary talent and industry expertise across regions including India, the US, Israel, and the Middle East.

Sector Focus and Investment Approach

The new fund will concentrate on various sectors, including space tech, AI, semiconductors, aerospace, defence technology, robotics, energy transition, and other IP-led innovations. The primary focus will be on pre-seed and seed investments, with initial funding typically ranging from $750,000 to $2 million. Furthermore, the fund will set aside capital for follow-on investments in Series A and Series B rounds. Over its lifespan, it is anticipated to invest in 25–30 companies.

Aum Ventures’ Previous Successes

Aum Ventures was an early institutional investor in Skyroot Aerospace, which has distinguished itself as India’s first space tech unicorn and successfully launched its Vikram-1 rocket recently. Fund II builds upon Aum Ventures’ first fund initiated in 2023, which has achieved a gross MOIC of 2.23x and a gross IRR of 53% to date. The firm has also made an exit from Sharang Shakti, which was acquired by LAT Aerospace.

Portfolio Overview

Aum Ventures’ portfolio features notable companies such as Skyroot Aerospace, Azimuth AI, Cosmoserve Space, Sanyark Space, Sully.ai, and Latentai, covering a range of cutting-edge technology sectors.

Growing Trend in Deep Tech Funding

Numerous Indian venture capital firms have increasingly focused on dedicated funds aimed at deep tech, highlighting a surge in investor interest in the domains of AI, defence tech, space tech, semiconductors, robotics, and climate technology. Recently, Shastra VC introduced a $100 million deep tech and AI fund in May 2026, while IIT Madras Research Park along with Unicorn India Ventures announced the Rs 600 crore IIT Madras Unicorn Frontier Fund I, featuring a Rs 400 crore greenshoe option, to invest in 25–30 frontier tech startups.

Piper Serica has also secured Rs 300 crore in the first closing of its Rs 800 crore Bharat Tech Fund, which is focused on deep tech enterprises within AI, robotics, advanced materials, and space technology. Other firms such as Kalaari Capital and Blue Ashva Capital are exploring dedicated deep tech funds estimated between Rs 500–600 crore and Rs 300–400 crore, respectively, as investor enthusiasm for India’s R&D and innovation landscape grows.