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Early-stage venture capital firm Aum Ventures has closed the first tranche of its second fund, pulling in Rs 225 crore toward a total target of Rs 750 crore for its India Innovation Fund II. The vehicle will back deeptech startups across space, AI, and defence tech, marking the firm’s return to fundraising after a strong showing on its debut fund and signaling continued investor appetite for India’s frontier-tech founders even as broader venture funding stays selective.
Global LPs Back Aum Ventures’ Second Fund
More than 65% of the capital in this first close came from international limited partners spread across the US, the Middle East, and other overseas markets, according to the firm. The investor base includes family offices, entrepreneurs, and strategic backers rather than traditional institutional funds alone — a mix Aum Ventures says reflects growing global conviction in India-built, IP-led technology companies.
“The successful first close of India Innovation Fund II reflects the confidence our investors have placed in our team, our investment philosophy and, most importantly, the founders we back,” said Chetan Mehta, founding partner at Aum Ventures.
Where the Rs 750 Crore Fund Will Deploy Capital
Aum Ventures’ India Innovation Fund II is structured to write early checks and hold reserves for follow-ons:
- Stage: Primarily pre-seed and seed
- Cheque size: $750,000 to $2 million at entry
- Follow-on strategy: Reserved capital for Series A and Series B rounds
- Portfolio size: 25–30 companies expected over the fund’s life
- Sectors: Space and aerospace, AI, semiconductors, defence technology, robotics, energy transition, and advanced manufacturing
The fund is registered with SEBI as a Category II Alternative Investment Fund (AIF) and is aimed squarely at IP-led startups building technology in India for global markets — a thesis increasingly common among India’s deeptech-focused VC firms as hardware and frontier-tech investing gains momentum.
Beyond capital, Aum Ventures says it will support portfolio founders with access to international markets, strategic partnerships, and industry talent — support that matters most for hardware and defence-tech founders who often need longer runways to commercialize.
Track Record: Skyroot Aerospace and a 2.23x MOIC
Aum Ventures’ first fund — formally launched out of the Abu Dhabi Global Market in November 2022 — gives the firm a performance track record to point to. The firm reports a gross MOIC of 2.23x and a gross IRR of 53% on that vehicle so far.
Its most prominent bet paid off publicly: Aum Ventures was an early investor in Skyroot Aerospace, which became India’s first spacetech startup to cross a $1 billion valuation in May 2026 after raising $60 million. The firm’s broader portfolio includes Azimuth AI, Cosmoserve Space, Sanyark Space, Sully AI, and Latent AI. It has also already recorded an exit, from robotics startup Sharang Shakti, following its acquisition by LAT Aerospace.
Why This Fund Close Matters for India’s Deeptech Startups
India’s deeptech and spacetech ecosystem has been one of the more resilient corners of the startup market through a choppier funding environment, helped by government policy support for private space and defence players and rising global interest in supply-chain diversification away from China. Other recent raises echo this trend — defence-focused AI startup Innefu Labs recently closed its own $30M Series B for sovereign AI work in national security, underscoring how investors are pricing in India’s frontier-tech and defence-tech buildout, a shift Moneycontrol has also tracked in its own reporting on this fund close.
A fund like India Innovation Fund II — sized specifically for pre-seed and seed deeptech bets, with dedicated Series A/B reserves — gives early founders in these capital-intensive sectors a funding path that’s still relatively scarce in India compared to consumer tech or SaaS. Non-dilutive support is growing too: Samsung recently rolled out no-equity grants for Indian startups through its SMA program, adding another early-stage funding option alongside VC bets like Aum’s.
For founders building in space, semiconductors, robotics, or defence tech, the fund’s global LP base and cross-border support could prove as valuable as the cheque itself, particularly for companies eyeing overseas customers and partnerships early.
What’s Next
Aum Ventures has not disclosed a target closing date for the remaining Rs 525 crore of India Innovation Fund II, and it’s unclear whether additional international or domestic LPs will be announced before the final close. The firm’s next moves — and which frontier-tech startups it backs from this fund — are worth tracking as India’s deeptech investment thesis continues to mature.
Want more updates like this as they break? Follow Knowstartup for our coverage for the latest on India’s venture capital and deeptech ecosystem.
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