Shastra VC Expands Deeptech Investment Focus
Shastra VC has launched a new $100 million fund aimed at backing early stage startups across deeptech, artificial intelligence, spacetech, climate technology, defence and renewable sciences.
The venture capital firm, formerly known as Veda VC, said the newly launched Fund III will primarily focus on intellectual property-led startups building technology-driven products and infrastructure.
According to the firm, the new fund plans to invest between $500,000 and $3 million in startups operating across advanced technology sectors.
Industry experts believe the launch reflects growing investor interest in India’s rapidly expanding deeptech ecosystem as global capital increasingly shifts toward AI, semiconductor, spacetech and climate innovation.
Fund III To Focus On AI, Defence And Renewable Sciences
Shastra VC said Fund III will continue its existing deeptech investment strategy while placing sharper emphasis on artificial intelligence, defence technologies, renewable sciences and space-focused startups.
The firm also plans to provide stronger follow-on support for portfolio companies beyond initial investments.
India’s deeptech startup ecosystem has witnessed rapid growth over the last few years as founders increasingly focus on research-driven products, AI infrastructure, robotics, semiconductors, aerospace and climate innovation.
Analysts believe sectors such as spacetech, defence and AI are likely to attract substantial venture funding over the next decade due to rising government support, strategic demand and global technology shifts.
The Indian government has also introduced multiple policy initiatives supporting semiconductor manufacturing, space sector liberalisation and defence innovation.
Founders Bring Strong Startup Backgrounds
Shastra VC is led by Vasant Rao, Avijeet Alagathi and Ashis Nayak.
Rao and Nayak had earlier co-founded Autoninja, which was later acquired by ICICI Lombard.
Meanwhile, Alagathi founded BYG, which was later acquired by Curefit.
Industry observers believe the operational experience of the founders could help the firm better support technology-led startups through product scaling and commercialisation challenges.
Firm Has Already Deployed $55 Million
According to the company, Shastra VC has already deployed nearly $55 million across its first two funds and currently manages assets worth around $100 million.
Its existing portfolio includes startups such as Simplismart, Alt Carbon, Sisir Radar and Avammune.
The firm has additionally built an advisory network comprising business leaders, researchers and domain specialists across sectors such as biotechnology, semiconductors, climate sciences and space technology.
The advisory network includes senior industry figures such as CP Gurnani and C. Jayaram.
India’s Deeptech Ecosystem Gains Momentum
India’s deeptech ecosystem has increasingly attracted investor attention as startups move beyond consumer internet models into complex scientific and engineering innovation.
Analysts believe artificial intelligence, climate technology, aerospace and defence technology could emerge among the biggest long-term opportunities within India’s startup economy.
The launch of large dedicated deeptech funds also reflects improving confidence among venture investors regarding India’s ability to build globally competitive research-driven startups.As AI adoption accelerates worldwide and strategic technologies become increasingly important, India’s deeptech funding ecosystem is expected to witness significantly higher investment activity in the coming years.
