IIT Madras, IIT Madras Research Park and Unicorn India Ventures have raised ₹450 crore in the first close of the IITM Unicorn Frontier Fund-I, a Rs 1,000 crore fund focused on early-stage deeptech startups.
The first close was achieved within three months of receiving approval from the Securities and Exchange Board of India (SEBI). The fund is expected to reach its final close by December 2026, with a Rs 400 crore greenshoe option taking the potential corpus to Rs 1,000 crore.
The fund has already deployed nearly ₹55 crore across four startups, Hathor, Quanstra, Triolt Energy and Carbelim.
The fund plans to build a portfolio of 25 startups, with an average investment of Rs 15-25 crore per company. Most of its investments will focus on early-stage deeptech companies that have reached Technology Readiness Level (TRL) 3-4.
The four startups receiving funding are working across space, quantum technology, energy and carbon capture.
Hathor, based in Chennai, is developing semi-cryogenic and cryogenic rocket engines for small and medium satellite launch vehicle companies. Delhi-based Quanstra is developing single-photon detection systems and quantum instrumentation for research and industrial quantum applications.
Triolt Energy is developing lithium-ion battery cells for drones and fast-charging electric mobility, while Carbelim is developing bio-integrated carbon capture and air purification systems using proprietary microalgae technology.
“At IIT Madras, we have built an ecosystem that has nurtured several deep tech companies who have consistently demonstrated TRL growth and with a joint fund with best in class deep tech investors Unicorn India, we are now confident that these companies will not only get access to patient capital but also strategic growth guidance as well,” said Prof. Kamakoti Veezhinathan, Director of IIT Madras.
“With Unicorn India’s capability and depth, we have reached the first close in record three months, which is a feat and we are confident that as we build a high potential portfolio with this fund, we will give India some of the best deep tech startups as we have done in the past,” he added.
The fund will focus on six areas: defence technology, space technology, semiconductors, manufacturing technology and robotics, AI infrastructure and GenAI, and health tech.
According to the fund, investments will be screened for global export potential, strategic import substitution and sovereign technological advantage.
The fund is backed by IIT Madras alumni and family offices. Institutional investors and banks are expected to participate in the final close.
Bhaskar Majumdar, Managing Partner at Unicorn India Ventures, said the partnership with IIT Madras would provide founders with capital and strategic support to scale their companies.
“Through our partnership with IIT Madras, we aim to provide early founders the capital and strategic support required to scale and build globally competitive companies from India,” Majumdar said.
Natarajan Malipillai, Group CEO, IIT Madras Research Park, Incubation Cell & RTBI, said the fund would bring long-term capital into the IIT Madras innovation ecosystem.
“The IITM Unicorn Frontier Fund-I brings long-term capital into the IIT Madras innovation ecosystem, helping scale-up of IP-led, globally competitive companies from India,” Malipillai said.
Unicorn India Ventures will manage the fund and plans to mobilise additional capital through co-investments alongside the primary fund corpus.
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