One of the notable moves in startup funding in India this week is a fund, not a startup: AUM Ventures has raised ₹250 crore in the first close of its ₹750 crore India Innovation Fund II, and aims to complete the final close by March 2027, the firm told Business Standard on October 15, 2026.
Startup funding India deep-tech bet
The fund will back early-stage Indian deep-tech companies across spacetech, semiconductors, defence technology, AI, robotics and advanced manufacturing, targeting 25–30 companies. The firm plans to make six to seven investments this year. It has already shown its hand: AUM Ventures led the ₹17 crore round in spacetech startup OXG Space through this fund, with Skyroot Aerospace's cofounders joining in.
Founding partner Chetan Mehta said his earlier exposure to SpaceX and the opening up of India's space sector helped shape the firm's investment thesis. The maiden fund was backed largely by global family offices and US tech entrepreneurs who had built and sold billion-dollar businesses; for Fund II the firm is widening its limited-partner base to include institutional investors in India and overseas — including government-backed programmes such as SIDBI's Fund of Funds for Startups and the RDI Fund. Mehta said the firm had not applied during the RDI Fund's initial application window but intends to apply when the next window opens.
Why it matters for founders
Patient, sector-native capital for deep-tech is finally arriving in India at institutional scale. If you are building in spacetech, semiconductors, defence, or robotics, AUM's Fund II is a direct target — and its willingness to anchor itself to SIDBI FoF and the RDI Fund signals that matching government dry powder is part of the plan. Get your technical diligence house in order: deep-tech rounds are won on defensible IP and milestone plans, not decks.