India-based venture capital investor Transition VC announced the launch of Fund II, its second fund focused on investing in engineering-led companies across energy transition value chain and adjacent deep tech areas.
Transition VC said that it is targeting INR 15 billion (USD$155 million) for Fund II, more than double the capital raised for its inaugural fund, which closed at INR 7.2 billion, well ahead of its initial INR 4 billion target. According to Transition VC, Fund I has delivered a 57% IRR and generated over 3x multiple on invested capital (MOIC).
Shantanu Chaturvedi, Partner at Transition VC said:
“Our experience with Fund I reinforced that successful deep-tech investing comes down to three things: One, knowing when a technology is ready for commercial adoption. Second, understanding whether it can become a large, economically viable business. And third, backing founders with the resilience to navigate long product development cycles and changing market conditions. These principles continue to guide every investment we make through Fund II.”
While the initial fund focused on backing energy technology startups, Transition VC said that the new fund will invest across the energy transition value chain, and also into adjacent sectors such as advanced manufacturing and application engineering, which the firm said reflects the growing convergence between energy systems and industrial technologies. Additionally, the firm said that it will also selectively evaluate emerging opportunities in areas including nuclear, geothermal and next-generation energy infrastructure.
The firm said that it will remain focused on the “missing middle” of venture capital, targeting companies that have proven technical feasibility and early commercial traction but are yet to achieve product-market fit at scale, which it called one of the most underserved stages of venture investing, offering an opportunity to back engineering-led businesses before commercial validation is fully priced into the market.
Raiyaan Shingati, Co-Founder and Managing Partner at Transition VC said:
“The world is going to change the way it generates and consumes energy, and recent geopolitical events have reinforced that energy security is now as important as energy sustainability. India is uniquely positioned to lead this transition by combining one of the world’s largest domestic markets with globally competitive engineering talent and cost-efficient manufacturing.”
The firm said that the new fund has already received participation from several existing investors, including multiple Fund I limited partners that have increased their commitments, and seen strong interest from global institutions, corporate investors and family offices.
Shingati added:
“Our conviction remains that breakthrough technologies can deliver decarbonisation while making energy and industrial systems faster, cheaper and better.”
