Pre-seed VC firm Industrial47 raises Rs 85 Cr in first close of Rs 200 Cr fund

Industrial47, a venture capital firm led by Rahul Seth, has successfully raised Rs 85 crore in the initial funding round for its newly established fund. The fund's overall target is Rs 150 crore, with an additional green shoe option of Rs 50 crore. The first round of investments attracted participation from various sources, including family offices, industrial groups, founders, and operators. Notably, Swiggy co-founder Nandan Reddy also participated in the first close.

The investment round will support 15-20 startups across various sectors such as space systems, defence, energy, maritime intelligence, advanced manufacturing, and other frontier technologies. The firm places a strong emphasis on national security and strategic infrastructure. Rahul Seth, Founder and General Partner of Industrial47, emphasized the importance of technological sovereignty, stating that every nation needs to develop its own technologies, particularly India, which has historically relied on imports.

Seth believes that the startups backed by Industrial47 will help bridge the gap between India's current capabilities and its future requirements.

The first close of the fund saw investments in several promising startups, including Pranos Fusion, a fusion technology company; Armory, a deeptech drone startup; and RekiSe Marine, an autonomous submarine builder. Seth has made personal investments in companies such as Pixxel, Digantara, PierSight, Alt Carbon, Flam, and Anthriq.

Industrial47 evaluates potential investments not only based on their commercial viability but also on their potential to become enduring capabilities that India might need to develop in the future.

Nandan Reddy, Co-founder of Swiggy, praised Rahul Seth's vision for India's technological future and his ability to identify companies that create entirely new industries. Seth's background in the armed forces provides him with a unique perspective on space, energy, and defence technologies.