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Transition VC, energy transition-focused venture capital firm, has launched its Fund II with a target corpus of INR 1,500 crore. The fund will invest USD 2–5 million in approximately 20 engineering-led startups over a four-year deployment period beginning in Q3 FY27.
The launch follows the deployment of Fund I which closed at INR 723 crore, exceeding its initial target of INR 400 crore. Within three years, the fund had delivered a 57% IRR and generated over 3x MOI, the VC said in a press note.
The fund is targeting 1x DPI over the next three years. The portfolio has recorded zero write-offs, with several companies already profitable, securing follow-on funding, and scaling towards INR 100 crore-plus annual revenues, it adds.
“Rather than relying on inbound deal flow, Transition VC follows a top-down, thesis-led investment process, mapping industrial value chains to identify structural white spaces before evaluating companies,” the VC said.
It adds that its team works closely with industry experts to understand why technologies have succeeded or failed globally, tracks emerging innovations through global IP filings, and uses AI-assisted discovery to identify companies solving critical engineering problems.
“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. Our conviction remains that breakthrough technologies can deliver decarbonisation while making energy and industrial systems faster, cheaper and better. Building on the success of Fund I, which delivered over 3x MOIC in three years and validated our thesis, our goal is now to convert that MOIC into DPI over the next three years. Our goal with Fund II is to repeat the success of Fund I while allocating to new segments like Advanced Manufacturing, Semiconductors, Geothermal & nuclear value chain,” Raiyaan Shingati, Co-Founder and Managing Partner at Transition VC, said.
