The fund will back startups and MSMEs working in areas such as semiconductors, defence tech, space, artificial intelligence, biotech, agri-tech and climate-linked solutions, with a clear focus on solving real problems for India while building globally scalable businesses. Since its launch, the Alpha Fund has already invested in over a dozen startups, many of them led by first-generation founders from tier II and tier III cities.
Saurabh Srivastava, Co-Founder of IAN Group and NASSCOM, said investor caution has not translated into a lack of appetite for credible early-stage platforms. “There has been a slowdown, but not for everybody,” he told CNBC-TV18, adding that IAN’s two-decade-long track record helped reassure investors. “We have been around for over two decades, so there is enough that investors can see, touch and feel in terms of what we have done earlier.”
Srivastava said the fund was able to demonstrate both existing investments and a strong pipeline, which helped attract marquee institutional investors, along with high-net-worth individuals and family offices. According to IAN Group, its wider portfolio of more than 250 companies today has a market valuation of nearly $10 billion across sectors ranging from space and biotech to SaaS, fintech, robotics and manufacturing technology.
Padmaja Ruparel, Co-Founder of IAN Group, said the Alpha Fund’s sector focus is closely tied to India’s push for self-reliance and technology sovereignty. “The world today is becoming increasingly unipolar, and as each country starts building, we have to create self-dependence,” she said. Foundational technologies such as semiconductors, biotech and defence are “national strategic imperatives”, she added, alongside areas like water, sanitation and agri-tech that pose global challenges.
Ruparel said the fund is building a risk-mitigated portfolio by backing companies that have moved beyond pure research and are closer to commercialisation. “We are picking companies at stages where they have progressed a bit further, so while technology is still being developed, there are also revenues and visibility on the next round,” she said. The portfolio is being spread across sectors, geographies and time horizons, combining shorter-term opportunities with long-gestation deep tech bets.
Also Read | From hype to hard proof: India’s deep tech bets turn commercial in 2025, say experts
On evaluating high-risk innovation, Srivastava said IAN looks for early technical validation and clear market potential. “In deep tech areas, we look at companies that are already at TRL 4, where there is some validation of the technology,” he said. The presence of a large domestic market in areas such as semiconductors, defence and space also reduces risk, he added.
The Alpha Fund typically invests around $2 million in the first institutional round of a startup, with the option to invest more as companies scale. Ruparel said capital is often released in tranches linked to performance, and IAN plays an active role by taking board seats and helping founders build on the business side. “It is a coach-and-captain partnership,” she said.
Watch accompanying video for entire discussion.
