IIT Madras Unicorn Frontier Fund I achieves first close at ₹450 cr

IIT Madras Research Park, in collaboration with venture capital firm Unicorn India Ventures and IIT Madras, has successfully closed its deep tech Unicorn Frontier Fund at ₹450 crore. This achievement marks the fund's first close, accomplished in just three months following SEBI's approval. With SEFI's approval, the IITM Research Park is optimistic about reaching the final close by December 2026, driven by significant market interest.

The fund's initial capital raise was facilitated by three primary stakeholders: IIT-M alumni globally, the ecosystem's clients, and banking financial institutions and family offices. Natarajan Malupillai, Group CEO of IITM Research Park, suggested a target range of ₹800-1,000 crore for the overall fund closure. He highlighted the government's RDI Fund ecosystem and SIDBI as potential partners for the subsequent phase of funding, which will likely feature a more prominent role for sovereign and institutional capital.

Malupillai emphasized the significance of the alumni participation, stating that it signifies a stronger connection between the ecosystem and India's growth in deep technology. The fund's focus encompasses various sectors, including space, defence, semiconductors, advanced AI, IoT, industrial automation, health tech, biotech, climate tech, and EV/mobility. Startups from outside the ecosystem that work on frontier technologies are also welcome to apply for funding.

The fund has already committed nearly ₹55 crore to four deep tech start-ups, namely Hathor, Quanstra, Triolt Energy, and Carbelim. Malupillai stated that the goal is to foster startups with validated products and a TRL (Technology Readiness Level) of 4 or higher. He envisions the fund contributing to the emergence of steady-state deep tech IPOs by 2030 or 2032, with an aspiration for these companies to achieve revenue models surpassing ₹1,000 crore.