The fund focuses on investments in semiconductors, spacetech and AI infrastructure. It has already seen strong early traction, with seven to eight portfolio companies witnessing substantial follow-on rounds, the firm said.
“Fundamentally, deeptech is really picking up in India,” Bhaskar Majumdar, founder and managing partner of Unicorn India Ventures, told ET. The momentum is being driven by structural shifts rather than short-term market cycles, he said.
The fund will make 20 investments with an average ticket size of 10-15 crore, Majumdar said.
“Deeptech needs capital early,” he said. Also, early-stage cheque sizes are getting larger.
“India has seen one full startup cycle. Many founders today are repeat entrepreneurs with strong track records. Investors are backing the individual as much as the idea,” he said.
Unicorn plans to announce four investments in the coming months across quantum sensing, agritech and spacetech.
33% US-based LPs
Fund III has marked a shift in the firm’s investor base, with about 33% of the capital coming from international limited partners (LPs), largely from the US. Many of these investors are entering the Indian startup ecosystem for the first time, Unicorn said.
Another major trend playing out in the fund is the growing presence of academicians as startup founders. Majumdar said four to five companies in Fund III are led by academicians, with one of them being a teaching academic. “That brings technology rigour and a very different mindset,” he said.
He also pointed to a steady return of Indian researchers and experienced professionals from the US. In sectors such as defence, cryogenics and military technology, crossing the glass ceiling often requires US citizenship, he added.
“Many professionals are unwilling to take US citizenship, so they hit a ceiling in their mid-30s. That’s pushing talent from NASA and defence research back to India, including in areas like quantum computing,” Majumdar said.
Across its three funds, Unicorn India Ventures has built a portfolio of nearly 50 companies, with a total portfolio valuation of about $5 billion.
On its investment strategy, Majumdar said the firm is largely staying away from AI applications (SaaS). “It’s still hard to predict winners there. Instead, we are focusing on AI infrastructure – semiconductors, data centres, power and enabling technologies. That’s where companies like Netrasemi, Kluisz and TakeMe2Space fit in,” he said. “We are also actively exploring nuclear micro power generation as an enabler for AI.”
Drawing from learnings in Fund I, Majumdar said deeptech exits are expected to be largely driven by mergers and acquisitions rather than IPOs. “We had an investment from Fund I in an automotive software company that was acquired by a large US-listed firm purely for its IP. India has never been an IP-led ecosystem, so even we are learning how to value IP properly. That’s now a key decision factor for us,” he said.
LPs in Fund III include HNIs, UHNIs, family offices and institutions. Backers include Sidbi, SBI, Nabard and the state governments of Kerala, Madhya Pradesh and Odisha.
