(MENAFN- KNN India) Chennai, Oct 23 (KNN) The IIT Madras Research Park (IITMRP) is setting up a Rs 500-crore venture capital fund to support early-stage deep-tech startups across India.

According to Natarajan Malupillai, Group CEO of IITMRP, the fund aims to bridge critical financing gaps faced by startups in the seed, pre-Series A, and Series A stages.

The research park is currently in the process of appointing a fund manager. It plans to include a 25% green-shoe option, which would allow the fund to expand beyond the initial corpus based on demand.

The first close is targeted by March 2026, following approval from the Securities and Exchange Board of India (SEBI).

“The goal is to provide startups with enough runway to develop deep-tech products and attract commercial investment,” said Malupillai. The fund will typically invest between Rs 4 crore and Rs 5 crore per startup.

While IITMRP-incubated ventures will be the primary focus, the fund will also support deep-tech companies nationwide that align with key national themes.

There has been strong interest from IIT-Madras alumni, including global members, who want to contribute to India's growing innovation ecosystem.“Having limited partners who understand both technology and markets is an added advantage,” Malupillai noted.

The fund will focus on three to four major themes that leverage IIT Madras' research strengths. Given the long gestation periods of deep-tech ventures, it will follow a 10+1+1 model - a 10-year tenure with two optional one-year extensions.

IITMRP is also in talks with the Anusandhan National Research Foundation (ANRF) and the Department of Science and Technology's Research, Development and Innovation (RDI) scheme to align its initiatives.

The park already houses successful startups such as Ather Energy and Uniphore, and aims to create a multiplier effect in India's deep-tech ecosystem.

(KNN Bureau)

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