AUM Ventures is targeting a ₹750 crore fund close by March 2027 to invest in India’s deep-tech startup ecosystem. The venture capital firm has raised ₹250 crore in its first close and plans to back early-stage companies developing technologies with long-term commercial potential.
AUM Ventures Raises ₹250 Crore in First Fund Close
AUM Ventures, an early-stage venture capital firm focused on innovation-led businesses, is working towards completing its ₹750 crore India Innovation Fund II by March 2027. According to a Business Standard report published on October 15, 2026, the firm has raised ₹250 crore in the first close and intends to direct investments towards deep-tech startups.
The fund was launched in June 2026 to support Indian entrepreneurs developing intellectual property-driven businesses. Its investment strategy centres on companies building proprietary technologies that can serve Indian markets and compete internationally.
The latest fundraising update also reflects the growing interest in businesses that require technical expertise, research capabilities and longer development cycles. Unlike many consumer internet startups, deep-tech companies often need significant investment before their products become commercially viable.
AUM Ventures plans to make six to seven investments during the current year, according to the October report. The firm is targeting a broader portfolio of startups through its second fund, with investments spread across several advanced technology sectors.
The March 2027 target is a fundraising deadline rather than a confirmation that the entire amount has already been secured. The final corpus will depend on the capital commitments the firm receives before closing the fund.
India Innovation Fund II Focuses on Deep-Tech Sectors
AUM Ventures’ second fund is designed to support startups working across several technology-intensive industries. These include space technology, semiconductors, artificial intelligence, defence technology, robotics, energy transition and advanced manufacturing.
These sectors have different commercial requirements, but they share a common characteristic: developing competitive products often requires specialised engineering, research and intellectual property.
Space technology companies, for example, may develop satellite systems, launch technologies or communications infrastructure. Semiconductor startups work on technologies and components used in electronics, computing and industrial equipment. Artificial intelligence companies may build proprietary models, specialised applications or systems designed for enterprise use.
Defence technology and advanced manufacturing startups can also require extensive testing, technical validation and relationships with large institutional customers before achieving commercial scale.
The fund’s focus on these areas gives early-stage companies access to a potential source of private capital at a stage when traditional financing can be difficult to obtain. However, investment decisions will still depend on each company’s technology, founding team, market opportunity and ability to execute its business plan.
For entrepreneurs, the focus on intellectual property is particularly relevant. A company with proprietary technology may have opportunities to build a defensible market position, provided its product solves a genuine customer problem and can be manufactured or deployed at a commercially sustainable cost.
Investment Strategy Targets Pre-Seed and Seed-Stage Startups
AUM Ventures primarily invests in pre-seed and seed-stage businesses. These are early phases of a startup’s development, when founders are validating an idea, building an initial product or establishing whether customers are willing to pay for the solution.
According to the fund details announced in June 2026, India Innovation Fund II plans to make initial investments ranging from $750,000 to $2 million. The fund also intends to reserve capital for follow-on investments as promising portfolio companies progress towards Series A and Series B funding rounds.
The fund is expected to support approximately 25 to 30 startups over its investment lifecycle. This approach allows the firm to participate in companies at an early stage while retaining the ability to provide additional capital to businesses that meet their development milestones.
Follow-on funding can be important for deep-tech companies because commercialisation rarely happens immediately after the initial product is developed. A startup may need additional resources for testing, regulatory requirements, manufacturing, customer acquisition and expansion into international markets.
The strategy also creates a distinction between funding a promising technical idea and supporting a business through its growth stages. Early investment helps founders establish a foundation, while subsequent capital can help them turn technical progress into a scalable commercial operation.
AUM Ventures Builds on Its Earlier Startup Investments
Founded in 2022, AUM Ventures has developed a portfolio focused on early-stage, innovation-driven companies. Its first fund had a corpus of ₹200 crore and supported 24 companies, according to Business Standard.
The firm’s portfolio includes Skyroot Aerospace, Cosmoserve, Sanyark Space, Gimbal Space, Latent AI and Helogen, among other businesses. These investments reflect its interest in companies working on specialised technology rather than limiting its portfolio to conventional consumer-facing startups.
Skyroot Aerospace is one of the firm’s notable investments in India’s private space sector. Hyderabad-based Skyroot develops launch vehicles intended to carry satellites into space. Its progress illustrates the kind of technically demanding business that can require sustained funding and long development periods.
AUM Ventures has also backed companies in areas such as semiconductor technology and defence innovation. These investments provide context for the firm’s decision to raise a larger second fund dedicated to similar opportunities.
The expansion from a ₹200 crore first fund to a ₹750 crore target for the second fund represents a substantial increase in the firm’s fundraising ambition. Whether the larger fund can generate attractive outcomes will depend on the quality of its investments, the development of its portfolio companies and its ability to support them through commercialisation.
OXG Space Investment Highlights the Space-Tech Focus
AUM Ventures’ recent investment in Bengaluru-based OXG Space provides a practical example of its investment approach.
According to the October 15 Business Standard report, AUM Ventures led a ₹17 crore funding round in OXG Space alongside Skyroot Aerospace co-founders Pawan Kumar Chandana and Naga Bharath Daka, as well as Cosmoserve founder Chiran Phanindra.
OXG Space is developing edge cell towers in space for Earth-observation satellites. The concept involves processing or handling data closer to where it is collected, potentially reducing the need to transmit all raw information to ground-based systems before useful results can be generated.
Such technologies operate in a specialised market where technical feasibility, satellite deployment, infrastructure costs and customer demand will influence commercial adoption.
The investment also demonstrates how founders and investors with experience in the space industry can contribute capital and sector knowledge to newer companies. However, the commercial success of a space-tech startup ultimately depends on whether its technology can perform reliably and attract customers willing to pay for its services.
For AUM Ventures, investments such as OXG Space align with its broader objective of backing companies that develop proprietary technology and address complex engineering challenges.
Why Deep-Tech Funding Matters for Indian Startups
India’s deep-tech ecosystem includes businesses working in areas such as space systems, semiconductors, robotics, artificial intelligence and advanced industrial technology. These companies can contribute to domestic technology development and create opportunities for specialised engineering talent.
At the same time, deep-tech entrepreneurship involves challenges that differ from those faced by many software-led startups. Research and development can be expensive, product cycles can be lengthy, and some technologies require testing or regulatory approvals before entering the market.
Access to patient capital is therefore important. Investors must be willing to evaluate progress over longer periods rather than relying only on rapid revenue growth or immediate profitability.
For founders outside established startup hubs, access to funding and technical networks can be another challenge. Regional engineering institutions, research centres and industrial clusters may produce promising ideas, but entrepreneurs still need connections to investors, experienced mentors and potential customers.
A larger pool of venture capital could help more startups move from research and prototype development towards commercial products. However, funding alone cannot guarantee success. Companies also need experienced leadership, market validation, reliable execution and a clear path towards generating revenue.
What to Watch Before March 2027
The next milestone for AUM Ventures is completing its fundraising target. The difference between the ₹250 crore raised in the first close and the ₹750 crore target is ₹500 crore, which the firm will need to secure to reach its stated goal.
The composition of its investor base will also be worth watching. Business Standard reported that the firm intends to broaden its limited partner base by approaching institutional investors in India and overseas. Limited partners are the investors who commit capital to a venture fund, while the fund manager selects investments and manages the portfolio.
Another important indicator will be the pace and distribution of investments across sectors. The number of companies backed, the amount deployed in each business and the availability of follow-on capital will help explain how the fund is being used.
For India’s startup ecosystem, the broader question is whether more capital can help deep-tech businesses move from technical development to commercial scale. AUM Ventures’ second fund is one development in that process, but its eventual impact will become clearer as fundraising progresses and portfolio companies reach operational milestones.
Key Takeaways
- AUM Ventures is targeting a ₹750 crore corpus for India Innovation Fund II, with a final close planned by March 2027.
- The firm has raised ₹250 crore in its first close and plans to invest in sectors including space technology, semiconductors, AI, defence technology and robotics.
- The fund primarily targets pre-seed and seed-stage startups, with initial investment cheques ranging from $750,000 to $2 million.
- AUM Ventures plans to support approximately 25 to 30 startups over the fund’s lifecycle, building on its earlier investments in companies such as Skyroot Aerospace.
Frequently Asked Questions
1. What is AUM Ventures’ ₹750 crore fund?
India Innovation Fund II is AUM Ventures’ second fund, designed to invest in early-stage Indian startups developing proprietary technologies across deep-tech sectors.
2. How much has AUM Ventures raised so far?
AUM Ventures has raised ₹250 crore in the first close of the fund, according to Business Standard’s October 15, 2026 report. Its target corpus is ₹750 crore.
3. Which sectors will AUM Ventures invest in?
The fund focuses on space technology, semiconductors, artificial intelligence, defence technology, robotics, energy transition and advanced manufacturing.
4. How many startups does AUM Ventures plan to support?
India Innovation Fund II is expected to back approximately 25 to 30 startups over its lifecycle, primarily at the pre-seed and seed stages, with follow-on investment opportunities for selected companies.
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