IIT Madras, IIT Madras Research Park, and Unicorn India Ventures have announced the first close of their IITM Unicorn Frontier Fund I at ₹450 crore (about $46.9 million). Launched in February, the deeptech-focused fund has already invested nearly ₹55 crore across four startups. The fund targets a final close of up to ₹1,000 crore by December 2026, aiming to support early-stage deeptech startups.
Managed by Unicorn India Ventures, the fund has a base corpus of ₹600 crore with a ₹400 crore greenshoe option. It plans to build a portfolio of 25 startups with cheque sizes ranging from ₹15 crore to ₹25 crore. The fund focuses on startups at technology readiness levels 3-4, covering proof-of-concept development and laboratory validation. Its six priority sectors include defence tech, spacetech, semiconductors, manufacturing technology, robotics and automation, AI infrastructure and GenAI, and healthtech.
The fund’s initial investments include Chennai-based Hathor, which develops semi-cryogenic and cryogenic rocket engines for small and medium satellite launches. IITM Unicorn Frontier Fund evaluates investments based on export potential, import substitution, and contributions to domestic technological capabilities. Backers include IIT Madras alumni and family offices, with institutional investors and banks expected to join by the final close.
The fund has deployed nearly ₹55 crore across four startups so far and aims to finalize its corpus by December 2026, with a target of ₹1,000 crore including the greenshoe option, according to inc42.com.