Bluehill.VC Marks Final Close Of ₹400 Cr Maiden Frontier Tech Fund

Bluehill.VC, an early-stage venture capital firm, has finalized the close of its inaugural ₹400 crore frontier tech fund. This fund features a greenshoe option valued at ₹50 crore. Notable participants include SIDBI, Kerala and Uttar Pradesh state governments, prominent family offices, seasoned entrepreneurs, and high-net-worth individuals from India and the Middle East.

Bluehill.VC concentrates on backing startups from the seed to Series A stages, with a focus on sectors such as energy, EVs, nuclear technology, semiconductors, advanced materials, defence, space, water, manufacturing, robotics, industrial technologies, and IoT. The firm aims to assemble a concentrated portfolio of 15-16 companies, with an average first investment ranging from $1-2 million.

Managing partner Manu Iyer expressed the firm's ambition to aid in the creation of Indian companies that not only participate in global markets but also lead in those domains. Bluehill.VC plans to deploy an additional ₹80 crore over the next six months and intends to launch its subsequent fund in 2027. Established in 2017 by Iyer and Sridhar Parthasarathy, the company has allocated over ₹100 crore across seven entities thus far.

Among its portfolio startups are EtherealX, Zebu Intelligent Systems, Sophrosyne Technologies, OptoML, Raptee Energy, Fyn Mobility, and Helex. The fund closure comes as India's deeptech sector experiences a surge, bolstered by policy backing for semiconductors, defence self-reliance, and advanced manufacturing. In June, the finance ministry's expenditure finance committee (EFC) endorsed a ₹1.25 lakh crore proposal for the India Semiconductor Mission 2.0 (ISM 2.0) program.

Concurrently, investors are increasingly channeling their funds into nurturing India's deeptech startups through capital support. Recently, early-stage VC firm AUM Ventures concluded the first close of its India Innovation Fund II at ₹225 crore, while global venture capital firm Accel raised $550 million for a new India-focused fund to invest in AI, deeptech, and other emerging startup categories within the country.