Transition VC launches Rs 1,500 Cr Fund II to back energy tech startups
Transition VC, an energy transition focused venture capital firm, has launched its second fund with a target corpus of Rs 1,500 crore (around $150 million), more than doubling the size of its maiden fund, which closed at Rs 700 crore.
The Bengaluru based firm announced the final close of its debut fund at Rs 700 crore (approximately $77 million) in December last year, exceeding its initial target of Rs 400 crore. The fund was backed by institutional investors, corporates, family offices, strategic partners, and industry leaders.
Fund II will invest in 20 to 23 hardware and deeptech startups across the energy demand and supply value chain, with cheque sizes of $2 million to $5 million.
According to the firm, Fund I has generated a 57% internal rate of return (IRR) and delivered a more than 3X multiple on invested capital (MOIC) within three years.
Transition VC has backed 17 startups through Fund I, including CIMware, Comminent, Matel, EMO, Hydgen, Dynolt, and Promethean, and plans to build a portfolio of up to 25 companies.
With Fund II, the firm will continue investing in energy transition startups while expanding its focus to advanced manufacturing and application engineering. It will also explore opportunities in semiconductors, nuclear energy, geothermal technologies, and next generation energy infrastructure, targeting startups with proven technical feasibility and early commercial traction.
The launch comes as investor interest in industrial deeptech and climate technologies continues to grow. Over the past year, several investment firms have launched dedicated climate and energy focused funds to back startups developing clean energy, decarbonisation, and advanced manufacturing technologies.
Co founded by Raiyaan Shingati and Mohammed Shoeb Al, Transition VC invests in early stage engineering led startups across electrification, energy storage, industrial decarbonisation, alternate fuels, and next generation manufacturing.
