Aum Ventures has launched its second fund, India Innovation Fund II, aiming to invest Rs 750 crore in 25-30 innovative startups in India over the next five years, focusing on pre-seed and seed stages.
- Target corpus of Rs 750 crore (~$80 million) for Fund II
- Focus on pre-seed and seed-stage IP-driven startups
- Plan to invest in 25-30 startups within five years
What happened
Aum Ventures has officially launched its second investment fund, named Aum Ventures - India Innovation Fund II, with an ambitious corpus target of Rs 750 crore, approximately $80 million. This new fund intends to deploy capital over a five-year period, investing primarily in early-stage Indian startups that are innovation-led and driven by intellectual property.
The fund, registered as a SEBI Category II Alternative Investment Fund, aims to support 25 to 30 startups, focusing mainly on pre-seed and seed-stage companies. Initial check sizes will range from $750,000 to $2 million, with plans to provide follow-on funding to portfolio companies as they grow.
Why it matters
India’s deep technology and IP-driven startup ecosystem can benefit significantly from a dedicated fund that not only supplies capital but also has experience backing similar early-stage ventures. Aum Ventures’ portfolio already includes prominent innovators like Skyroot Aerospace and Azimuth AI, highlighting its focus on space tech, semiconductors, and AI-led defense technologies.
By raising a substantial second fund, Aum Ventures is signaling growing investor confidence in India’s innovation economy and the potential for globally competitive IP-led startups to emerge from the country. This capital infusion could spur advancement in sectors critical to India’s technology landscape.
What to watch next
The fund’s first close is expected by July 2026, after which Aum Ventures will begin active deployment. Market observers will track the startups selected for investment to assess if they reflect the fund’s deeptech and IP-driven mandate and whether the fund contributes to scaling high-potential ventures.
Additionally, follow-on rounds and collaboration with global investors will be key indicators of the fund’s success in realizing its goal to back Indian founders capable of competing on an international stage. The startup ecosystem may also see complementary funding activity influenced by Aum Ventures' moves.