CHENNAI: The IIT Madras Unicorn Frontier Fund-I, set up to provide long-term funding to deep-tech startups, has raised Rs 450 crore in its first funding round. Union Finance Minister Nirmala Sitharaman was present at the announcement on Saturday.
Launched by IIT-M, IIT-M Research Park, and Unicorn India Ventures, the fund has a target corpus of Rs 1,000 crore, including a Rs 400-crore greenshoe option. The fund is expected to close by December, said a release. It added that the first close comes within three months of the fund receiving SEBI approval. The fund aims to build a portfolio of about 25 startups and will primarily support early-stage companies that need significant time and investment to develop and commercialise new technologies.
The fund has deployed nearly Rs 55 crore in four startups. This includes Chennai-based space-tech firm Hathor, Delhi-based quantum-tech firm Quanstra, battery technology company Triolt Energy and Carbelim, which develop microalgae-based carbon capture and air purification technology.
Investments will be screened for their potential to compete in global markets and reduce India’s dependence on imported technology.
The average investment in a startup is expected to be between Rs 15 crore and Rs 25 crore. Most investments will be in companies at technology readiness levels (TRL) 3 and 4, where a technology has moved beyond basic research but is still being developed and tested. The fund is backed by IIT-M alumni and family offices, while institutional investors, corporates and banks are expected to participate before the final close.