PanIIT, Andhra Pradesh plan Rs 500 Cr deeptech fund, target 25 AP startups by 2030
Andhra Pradesh Chief Minister N Chandrababu Naidu told venture capital investors that the state would match their contribution to deeptech investments.
PanIIT Alumni India and the Andhra Pradesh government are collaborating to establish a ₹500-crore venture fund dedicated to deeptech companies. This initiative forms part of a larger strategy to direct capital, research and manufacturing towards the state. The PanIIT Amaravati Venture Fund aims to attract investments from IIT alumni, industry players and institutional investors, with the first round of funding expected by July 1, 2027. The fund's primary goal is to support at least 25 Andhra Pradesh-based deeptech ventures by 2030.
Among the key requirements for the invested companies is that at least 50% of them must establish their principal research and development or manufacturing operations within the state of Andhra Pradesh. This localisation criterion is intended to ensure that the fund's investments contribute to the growth of businesses operating within the region.
Andhra Pradesh Chief Minister N Chandrababu Naidu addressed a panel of venture capital investors during the summit, urging them to provide both funds and expertise. He pledged, "You bring money, you bring mentors. I will match your contribution." The exact method through which the state will match private contributions and whether it will directly contribute to the venture fund has yet to be determined.
The venture fund is part of a broader framework outlined under the Andhra PanIIT Declaration, which aims to foster a long-term partnership between the IIT ecosystem, industry and the Andhra Pradesh government. This framework includes several initiatives such as a permanent PanIIT Amaravati Council, a technology-transfer pipeline, a 100-member global IIT mentor network and 10 industry chairs across various universities and institutions in the state.
The council aims to serve as a coordinating platform for deeptech, research and innovation initiatives in the state, while the mentor network will provide operating experience and industry connections to complement the capital provided by the venture fund. Together, these elements represent an effort to integrate venture capital with IIT research and alumni expertise, using Andhra Pradesh as a base for startup creation, R&D and manufacturing.
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