- Transition VC has launched its second fund with a target corpus of ₹ 1,500 crore (over $155 million) to invest in engineering-led startups focused on energy transition and deeptech.
- The Bengaluru-based firm plans to invest between $2-5 million in over 20 startups over the next four years, with deployments set to begin in the third quarter of FY27.
- The fund has already received commitments from several existing limited partners and is attracting interest from global institutions and corporate investors.
- Fund I was fully deployed, closing at ₹ 723 crore, exceeding its initial target of ₹ 400 crore.
- Fund I generated a 57% internal rate of return (IRR) and delivered more than 3X multiple on invested capital (MOIC) within three years.
- Transition VC will continue to focus on energy transition startups while expanding into advanced manufacturing and application engineering with Fund II.
Transition VC has launched its second fund, targeting ₹1,500 crore (approximately $155 million), to back startups in the energy transition and deeptech sectors. This fund aims to invest between $2 million and $5 million in around 20 startups over the next four years, with deployment expected to start in Q3 FY27.126
The firm, based in Bengaluru, has already secured commitments from existing limited partners and is attracting interest from global institutions and corporate investors. Transition VC's first fund, which closed at ₹723 crore, exceeded its initial target of ₹400 crore and achieved a 57% internal rate of return (IRR) with a more than 3X multiple on invested capital (MOIC) within three years.35
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With Fund II, Transition VC will continue its focus on energy transition startups while expanding into sectors like advanced manufacturing, semiconductors, and nuclear energy. The firm aims to support startups that have shown technical feasibility and early commercial traction but have not yet reached product-market fit at scale.4
Co-founder Raiyaan Shingati emphasized the importance of energy security and sustainability, stating, “The world is going to change the way it generates and consumes energy.” He noted that India is well-positioned to lead this transition due to its large domestic market and competitive engineering talent.
Transition VC has backed 17 startups through its first fund and plans to build a portfolio of up to 25 companies with Fund II, focusing on the 'missing middle' of venture investing.
“Fund I closed at Rs 723 crore, exceeding its target, and delivered a 57% internal rate of return and over 3x multiple on invested capital within three years. Fund II will deploy $2-5 million cheques into 20-23 startups, with investments beginning in Q3 FY27.”
