Shastra VC, the early‑stage venture firm spun out of IIT Madras, has launched a new $100 million fund to back deep‑tech and artificial intelligence (AI) startups in India. The fund is being raised from a mix of global institutional investors, family offices, and long‑term partners, underlining growing interest in India’s deep‑tech and AI ecosystem. The capital will focus on supporting startups that build proprietary technology in areas such as AI, semiconductors, robotics, advanced materials, and med‑tech.
Shastra has been active in the deep‑tech space since its formation, seeding companies from the IIT Madras campus and the broader Indian startup ecosystem. Over the years, it has backed several early‑stage ventures that have gone on to raise follow‑on rounds from global funds and corporates. The new $100 million fund aims to move beyond just pre‑seed and seed, taking meaningful stakes and helping founders scale up their operations, build R&D teams, and enter international markets.
Most of the capital will be allocated to Indian startups, with flexibility to invest in early‑stage cross‑border ventures linked to India’s tech talent pool. Shastra plans to back 30–40 startups from this fund, with ticket sizes typically ranging from a few hundred thousand dollars up to mid‑single‑digit millions, depending on the stage and capital needs. The fund also plans to support follow‑on rounds in some of its best‑performing portfolio companies to help them reach product‑market fit and commercial traction.
By focusing on deep‑tech and AI, Shastra is betting that India’s strong engineering base can create world‑class technology firms that solve hard problems in sectors such as healthcare, manufacturing, energy, and quantum‑adjacent domains. The launch of this $100 million fund signals a growing appetite among global limited partners to back India‑based deep‑tech funds, which could further strengthen the country’s position in the global innovation chain.
FAQs [Frequently Asked Questions]
1. What is Shastra VC’s new fund focused on?
Shastra VC’s new $100 million fund focuses on deep‑tech and AI startups in India, including areas like semiconductors, robotics, advanced materials, and med‑tech with strong R&D roots.
2. How many startups will the fund support?
The fund plans to invest in 30–40 startups, with initial ticket sizes from a few hundred thousand to mid‑single‑digit millions, and scope for follow‑on investments in top performers.
3. Who is providing the capital for this fund?
The $100 million is being raised from global institutional investors, family offices, and long‑term partners who see India’s deep‑tech and AI ecosystem as a high‑growth opportunity.