Transition VC targets ₹1,500 Cr for second deeptech fund
What's the deal? Transition VCDealroom has a profile for this one. Try Dealroom → has launched its second fund with a target corpus of ₹1,500 Cr (over $155 million) to back engineering-led startups. The Bengaluru-based firm will invest across energy transition, advanced manufacturing, and industrial deeptech.
The details: Transition VC plans to write cheques of $2 million to $5 million into more than 20 startups over four years. Deployment begins in the third quarter of FY27.
Fund II has commitments from existing limited partners, with interest from global institutions, corporate investors, and family offices. It will continue backing energy transition startups while adding advanced manufacturing and application engineering, and selectively eyeing semiconductors, nuclear energy, and geothermal technologies.
Why now? The firm says it has fully deployed its first fund, which closed at ₹723 Cr — well above its ₹400 Cr target. Fund I generated a 57% internal rate of return (IRR) and more than 3X multiple on invested capital within three years.
That first fund backed 17 cleantech startups, including HYDGEN, Matel, and Promethean, with cheques of $500,000 to $1 million across electric mobility, green hydrogen, and energy storage.
Who it targets: Transition VC will focus on startups that have shown technical feasibility and early commercial traction but have yet to reach product-market fit at scale.
The signal: Investors are increasing exposure to industrial deeptech. LightrockDealroom has a profile for this one. Try Dealroom → in 2026 unveiled a $500 million energy fund, Accelerate7, writing $10 million to $50 million cheques across South Asia and beyond, and has already backed India's Euler Motors and SolarSquare — a sign of the sector's growing pull.
Read more: Inc42
Image credit: Generated with Gemini
