Key Takeaways
- • Transition VC launched Fund II with a target corpus of ₹1,500 crore ($150 million), more than doubling its inaugural fund size of ₹700 crore, marking a significant expansion in India's energy transition venture capital landscape.
- • The fund will deploy capital across 20–23 engineering-led hardware and deeptech startups with individual cheque sizes of $2–5 million, focusing on companies in the energy demand and supply value chain with proven technical feasibility and early commercial traction.
- • Fund I demonstrated strong performance metrics, closing at ₹723 crore with 57% IRR, over 3x MOIC (multiple on invested capital), zero write-offs, and multiple profitable portfolio companies—providing institutional confidence in the firm's thesis and execution.
- • Fund II expands investment scope beyond traditional energy transition into advanced manufacturing, semiconductors, nuclear, geothermal, and next-generation energy infrastructure, positioning Transition VC to capture structural white spaces identified across India's clean energy and industrial deeptech ecosystem.
- • Deployment is set to commence in Q3 FY27, with co-founder Raiyaan Shingati emphasizing that energy security alongside sustainability and India's competitive engineering talent and large domestic market position the country to build globally competitive businesses.
Summary
Transition VC, a Bengaluru-based venture capital firm specializing in energy transition, has announced the launch of Fund II with a target corpus of ₹1,500 crore (approximately $150 million), significantly expanding its capital base for investments in India's clean energy and industrial deeptech sectors. This fund launch represents more than a doubling of the firm's inaugural fund, which closed at ₹700 crore, underscoring accelerating institutional appetite for energy-focused venture capital in India.
Fund II will target 20–23 engineering-led startups across the energy demand and supply value chain, with individual investment cheques ranging from $2 million to $5 million. The fund's strategy focuses on companies demonstrating proven technical feasibility coupled with early commercial traction, targeting what the firm describes as the "missing middle"—the gap between prototype stage and large-scale market fit where many promising technologies encounter funding challenges. Capital deployment is scheduled to commence in Q3 FY27.
The strong performance of Fund I provides substantial validation for Transition VC's investment thesis and operational execution. Fund I closed at ₹723 crore and delivered a 57% internal rate of return (IRR) alongside a multiple on invested capital (MOIC) exceeding 3x, with zero write-offs and multiple profitable portfolio companies. These metrics—particularly the absence of total losses and the achievement of profitable exits at an early fund stage—indicate rigorous deal selection and portfolio management discipline that institutional limited partners value highly.
Fund II's investment mandate has expanded beyond traditional energy transition to encompass advanced manufacturing, semiconductors, nuclear technology, geothermal energy, and next-generation energy infrastructure. According to co-founder Raiyaan Shingati, this broadened approach reflects a strategic positioning where energy security is now weighted equally with sustainability imperatives. The firm has identified over 40 structural white spaces where India possesses competitive advantages in engineering talent and domestic market scale to develop globally competitive businesses across these domains. This expansion signals confidence that India's engineering ecosystem and manufacturing capabilities position the country as a credible alternative to incumbent players in critical energy and industrial technologies.
Fund II will target 20–23 engineering-led startups across the energy demand and supply value chain, with individual investment cheques ranging from $2 million to $5 million. The fund's strategy focuses on companies demonstrating proven technical feasibility coupled with early commercial traction, targeting what the firm describes as the "missing middle"—the gap between prototype stage and large-scale market fit where many promising technologies encounter funding challenges. Capital deployment is scheduled to commence in Q3 FY27.
The strong performance of Fund I provides substantial validation for Transition VC's investment thesis and operational execution. Fund I closed at ₹723 crore and delivered a 57% internal rate of return (IRR) alongside a multiple on invested capital (MOIC) exceeding 3x, with zero write-offs and multiple profitable portfolio companies. These metrics—particularly the absence of total losses and the achievement of profitable exits at an early fund stage—indicate rigorous deal selection and portfolio management discipline that institutional limited partners value highly.
Fund II's investment mandate has expanded beyond traditional energy transition to encompass advanced manufacturing, semiconductors, nuclear technology, geothermal energy, and next-generation energy infrastructure. According to co-founder Raiyaan Shingati, this broadened approach reflects a strategic positioning where energy security is now weighted equally with sustainability imperatives. The firm has identified over 40 structural white spaces where India possesses competitive advantages in engineering talent and domestic market scale to develop globally competitive businesses across these domains. This expansion signals confidence that India's engineering ecosystem and manufacturing capabilities position the country as a credible alternative to incumbent players in critical energy and industrial technologies.
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