As India’s deeptech founders move from lab success to real-world deployment, one of the biggest hurdles they face is capital for scale. Chennai-based deep-tech venture capital firm Speciale Invest is now looking to address that gap.
The firm has announced the launch of Growth Fund II, a Rs 1,400 crore fund aimed at backing early-stage deeptech startups that have successfully validated their technology but are yet to build predictable and sustainable revenues.
The new fund plans to back 12–15 startups, with an average investment size of $5–8 million, supporting companies at the critical transition point where technology is ready for implementation and commercial execution becomes the priority.
According to Speciale Invest, Growth Fund II is designed to fill a structural gap in India’s funding ecosystem—where deeptech startups often struggle to find capital once the scientific risk is largely mitigated, but before they are ready for late-stage growth capital. The firm expects the fund to attract a more institutional limited partner (LP) base, while its early-stage funds continue to see participation from family offices.
Sector-wise, Speciale will continue to focus on spacetech, advanced manufacturing, energy storage, quantum computing, health and biosciences, and defence technologies. A significant portion of the fund is also expected to be deployed in unmanned systems and maritime surveillance, reflecting growing interest in dual-use and strategic technologies.
To lead its growth-stage investments, Speciale Invest has onboarded Vijay Jacob as General Partner. Jacob, a former founding member of NewQuest Capital, said the fund will focus on backing deeptech companies that are ready for capacity building, global competition, and commercial scale, rather than early scientific experimentation.
The launch of Growth Fund II comes close on the heels of Speciale closing its Fund III at Rs 600 crore, surpassing its initial target of Rs 500 crore. Fund III is focused on early-stage deeptech startups building sovereign technologies and globally scalable intellectual property from India. The fund plans to back 18–20 startups, with cheque sizes ranging between Rs 7 crore and Rs 10 crore, across areas such as AI infrastructure, spacetech, climatetech, quantum systems, advanced manufacturing, and dual-use defence.
Since its inception, Speciale Invest has launched three early-stage funds between 2017, 2021, and 2025, backing around 35 startups. Its portfolio includes companies such as Agnikul Cosmos, GalaxEye, ePlane Company, Ultraviolette, CynLr, and QNu Labs, and the firm has recorded nine M&A exits so far.
With Fund III, Speciale also plans to increase its average ownership stake in portfolio companies to around 15%, up from 5% in Fund I and 10% in Fund II—signalling a deeper, more conviction-driven approach to building India’s deeptech ecosystem.
-By Muskan Dengra
