IIT Madras Deep-Tech Fund Reaches ₹450 Crore First Close

On September 26, 2026, IIT Madras, the IIT Madras Research Park, and Unicorn India Ventures announced the first close of the IITM Unicorn Frontier Fund I at ₹450 crore. This marks the beginning of a broader effort to reach a total of ₹1,000 crore, a figure that includes a ₹400 crore greenshoe option. The Securities and Exchange Board of India (SEBI) granted its approval for the fund three months before the announcement, paving the way for more robust support of deep-tech startups in India. Finance Minister Nirmala Sitharaman attended the event celebrating this first close, highlighting the role the initiative plays in the national technological landscape.

Kamakoti Veezhinathan, director of IIT Madras, expressed confidence in the ecosystem designed to support deep-tech companies, noting how the fund pairs patient capital with strategic guidance. The IITM Unicorn Frontier Fund I focuses on six specific verticals where India has the potential to lead on a global stage. These sectors include defence technology, space technology, semiconductors, manufacturing technology, robotics and automation, artificial intelligence (AI), and health technology. Each potential investment is evaluated based on its capacity for global export and its ability to provide strategic alternatives to imports.

Nearly ₹55 crore has already been committed to four startups, including the spacetech firm Hathor and Triolt Energy, which works with lithium-ion batteries. This initial portfolio demonstrates a commitment to innovation in sectors capable of generating substantial economic value. To manage these investments on the ground, the fund works closely with Unicorn India Ventures. Bhaskar Majumdar, managing partner of Unicorn India Ventures, pointed to this collaboration as a vital element in helping deep-tech startups reach a larger scale.

The fund intends to build a portfolio of around 25 companies, providing the resources they need to compete internationally. Backing from IIT Madras alumni and various family offices provides both financial support and additional credibility to the project. Beyond the growth of individual businesses, the IITM Unicorn Frontier Fund I aims to strengthen the technological foundations of the country. By focusing on ventures driven by intellectual property, the fund supports self-reliance in essential industries and helps establish a presence in frontier technologies.

Natarajan Malupillai, group CEO of IIT Madras Research Park, spoke on the necessity of patient capital to meet the rising level of entrepreneurial ambition in India. This work is intended to help develop a sustainable innovation ecosystem that serves the economy and the public. Looking toward the future, the IITM Unicorn Frontier Fund I is working toward a final close by the end of 2026, a point at which institutional investors and banks are expected to participate. As the fund builds its portfolio and gathers further capital, it continues its work in the deep-tech sector, supporting a new generation of companies ready for the global market.