Deeptech-focused venture capital firm AUM Ventures has marked the first close of its India Innovation Fund II at ₹225 crore (approximately $23.6 million), aiming for a total corpus of ₹750 crore ($80 million). The fund will primarily invest in pre-seed and seed-stage startups in deeptech and frontier technology sectors, with initial investments ranging from $750,000 to $2 million, according to inc42.com.
The fund has attracted over 65% of its commitments from international limited partners across the US, West Asia, and other global markets. AUM Ventures plans to reserve significant capital for follow-on investments in Series A and Series B rounds. Over its lifecycle, the fund expects to back 25 to 30 startups. This second fund builds on the success of its maiden fund launched in 2023, which delivered a gross MOIC of 2.23X and a gross IRR of 53%.
AUM Ventures has a strong track record in deeptech investing, having been an early institutional investor in Skyroot Aerospace, India’s first spacetech unicorn. Its portfolio also includes Azimuth AI, Cosmoserve Space, Sanyark Space, Sully.ai, and Latentai. The firm recently exited Sharang Shakti following its acquisition by LAT Aerospace, a venture backed by Eternal cofounder Deepinder Goyal, underscoring its active role in the sector.
The India Innovation Fund II will continue to focus on early-stage deeptech startups, with the next fundraising milestones expected as the fund deploys capital. AUM Ventures’ first fund performance and strategic exits position it to support frontier technology ventures in India’s growing innovation landscape.