Aum Ventures has marked the first close of its second India-focused innovation fund at ₹225 crore, beginning the deployment journey for a fund that is targeting a total corpus of ₹750 crore.
The early-stage venture capital firm plans to use India Innovation Fund II to back 25 to 30 companies, concentrating largely on startups at the pre-seed and seed stages. Initial investments are expected to range between $750,000 and $2 million, with additional capital reserved for promising portfolio companies as they move through Series A and Series B rounds.
What stands out in the first close is the geographical mix of the capital. More than 65% of the commitments have come from international limited partners spread across the US, the Middle East and other global markets. The investor base includes family offices, entrepreneurs and strategic investors.
Deeptech sits at the centre of Fund II
Aum Ventures is positioning its new fund around businesses where technology and intellectual property form a substantial part of the competitive advantage.
The investment mandate covers spacetech, artificial intelligence, semiconductors, aerospace, defence technology, robotics, energy transition and advanced manufacturing. The firm is particularly looking for IP-led companies capable of building globally competitive technology from India.
That approach also gives the fund a relatively defined investment profile. Rather than spreading capital broadly across the startup ecosystem, Aum Ventures is focusing on technology categories that often require patient capital, follow-on funding and access to specialised industry networks.
Its decision to reserve capital for later rounds is an important part of that strategy. While Fund II will enter primarily at pre-seed and seed stages, the firm intends to continue participating in the growth of selected companies through Series A and Series B.
Fund II follows a 2023 debut fund
The new vehicle comes three years after Aum Ventures launched its inaugural fund in 2023.
Aum Ventures said Fund I has so far recorded a gross multiple on invested capital, or MOIC, of 2.23 times and a gross internal rate of return, or IRR, of 53%.
The portfolio built through the first fund includes Skyroot Aerospace, Azimuth AI, Cosmoserve Space and Sanyark Space in the space technology segment, along with companies such as Sully.ai and Latentai.
Aum Ventures was also an early institutional investor in Skyroot Aerospace, which the firm said has become India’s first spacetech unicorn. It has additionally recorded an exit from Sharang Shakti following its acquisition by LAT Aerospace.
These investments offer a clearer view of the type of companies the second fund is likely to pursue. The common thread is an emphasis on technically differentiated businesses operating in areas where product development, engineering capability or proprietary technology can become a meaningful barrier to entry.
International capital, India-focused technology
For Aum Ventures, the composition of the first close also brings another dimension to Fund II. A majority of the commitments so far have come from outside India, even as the investment thesis remains centred on technology businesses being built from the country.
Chetan Mehta, founding partner at Aum Ventures, said the first close reflects investor confidence in the firm’s team, investment philosophy and the founders it backs.
Beyond providing capital, Aum Ventures said it intends to help portfolio companies gain access to global markets, strategic partnerships, talent and industry expertise. Its network spans India, the US, Israel and the Middle East.
For founders, that support could become particularly relevant in sectors such as aerospace, semiconductors, defence technology and advanced manufacturing, where commercial partnerships and industry relationships can matter alongside funding.
With ₹225 crore now committed toward its ₹750 crore target, India Innovation Fund II gives Aum Ventures fresh capital to deepen a strategy it began with its first fund: entering technology companies early, retaining room to invest again as they mature, and concentrating on areas where Indian startups are building intellectual property for potentially global markets.
