The IITM Unicorn Frontier Fund I has reached its first shut at Rs 450 crore, as IIT Madras, IIT Madras Analysis Park and Unicorn India Ventures work in the direction of a complete fund corpus of Rs 1,000 crore.

The announcement was made within the presence of Finance Minister Nirmala Sitharaman. The fund mentioned the primary shut was reached three months after it obtained approval from SEBI, with the ultimate shut focused for December 2026.

The fund is backed by IIT Madras alumni and household places of work, whereas institutional investors and banks are anticipated to take part earlier than the ultimate shut. Unicorn India Ventures is the fund supervisor.

IIT Madras Analysis Park and Unicorn India Ventures had introduced the fund in February 2026 with a base corpus of Rs 600 crore and a Rs 400 crore greenshoe possibility, taking its potential dimension to Rs 1,000 crore.

“At IIT Madras, now we have constructed an ecosystem that has nurtured a number of deep tech firms who’ve persistently demonstrated TRL development and with a joint fund with finest at school deep tech buyers Unicorn India, we are actually assured that these firms is not going to solely get entry to affected person capital but additionally strategic development steerage as effectively,” mentioned Kamakoti Veezhinathan, Director of IIT Madras.

Rs 55 crore throughout 4 deeptech startups

The fund has additionally introduced the deployment of practically Rs 55 crore throughout 4 deeptech startups working in spacetech, quantum know-how, batteries and carbon seize.

Chennai-based Hathor is constructing specialised semi-cryogenic and cryogenic rocket engines for firms creating small and medium satellite tv for pc launch automobiles.

Delhi-based Quanstra is creating single-photon detection techniques and superior quantum instrumentation for analysis and rising industrial quantum purposes.

Triolt Power is creating high-performance lithium-ion battery cells optimised for drones and fast-charging electrical mobility purposes.

Carbelim is creating bio-integrated carbon seize and air-purification techniques utilizing proprietary microalgae know-how.

The fund goals to construct a portfolio of about 25 intellectual-property-led, engineering-heavy deeptech firms.

Its investment technique consists of backing early-stage firms which have reached Know-how Readiness Ranges (TRL) 3 to 4, in addition to offering capital to chose firms as their applied sciences progress in the direction of commercialisation and scale.

The fund additionally plans to order capital for follow-on investments, whereas Unicorn India Ventures intends to mobilise further funding by means of co-investments.

Concentrate on six know-how areas

The fund will deal with six areas: defence know-how; spacetech; semiconductors; manufacturing know-how, robotics and automation; AI infrastructure and generative AI; and healthtech.

In defence, the fund is concentrating on applied sciences that may assist import substitution. Its spacetech focus consists of space-qualified {hardware}, whereas semiconductor investments will consider fabless design and intellectual-property possession.

Its AI technique consists of sovereign enterprise AI, whereas the healthtech section is aimed toward applied sciences designed to enhance healthcare entry for lower-income populations.

The fund mentioned potential investments can be screened for international export potential, strategic import substitution and what it described as sovereign technological benefit.

Bhaskar Majumdar, Managing Companion at Unicorn India Ventures, mentioned the partnership was meant to offer early-stage founders with capital and strategic assist to construct globally aggressive firms from India.

“Via our partnership with IIT Madras, we purpose to offer early founders the capital and strategic assist required to scale and construct globally aggressive firms from India. With the Rs 450 crore first shut and our 4 investments already made, we intend to proceed constructing a portfolio of high-potential deep-tech ventures that may create important technological and financial worth,” Majumdar mentioned.

Offering affected person capital for deeptech

IIT Madras Analysis Park and the IIT Madras Incubation Cell have labored on translational analysis, commercialisation and the event of deeptech startups throughout sectors together with spacetech, communications, electrical mobility, semiconductors and quantum know-how.

Deeptech firms can require longer improvement cycles as applied sciences transfer from laboratory validation by means of product improvement and business deployment. The fund’s technique is designed to offer capital throughout elements of that improvement course of relatively than limiting investments to a single stage.

“Because the entrepreneurial ambition grows, we see a have to assist them with right-sized, affected person capital. The IITM Unicorn Frontier Fund-I brings long-term capital into the IIT Madras innovation ecosystem, serving to scale-up of IP-led, globally aggressive firms from India,” mentioned Natarajan Malupillai, Group CEO of IIT Madras Analysis Park, Incubation Cell and RTBI.

“Past particular person startups, our ambition is to strengthen India’s know-how capabilities, construct better self-reliance in essential sectors and place India as a supply of frontier applied sciences for the world,” he mentioned.

With Rs 450 crore secured on the first shut and investments in 4 startups introduced, the fund will now work in the direction of its deliberate closing shut by December 2026.