Key Takeaways
- • Transition VC is raising a ₹1,500 crore ($155 million) second fund, nearly double the size of its maiden ₹800 crore ($77 million) vehicle that closed in December 2025, with first close expected in Q3 FY27 (December quarter).
- • The fund will deploy $2–5 million across approximately 20 engineering-led startups over four years, focusing on battery infrastructure, energy networks, thermal energy storage, advanced materials, and geothermal energy solutions.
- • India's energy hardware sector is attracting increased institutional venture capital interest amid government targets to achieve 60% non-fossil fuel energy capacity by 2035, as outlined in the country's Nationally Determined Contributions (NDCs).
- • Transition VC's expanded thesis moves beyond battery infrastructure to encompass advanced manufacturing and industrial technologies, positioning the firm to capture scale-stage opportunities in energy transition-adjacent sectors where venture returns are increasingly viable.
- • Co-founder Raiyaan Shingati stated the strategy is to replicate Fund I's approach with significantly larger resources and enhanced operational support infrastructure for portfolio company scaling.
Summary
Transition VC, an energy-focused venture capital firm, has commenced fundraising for a ₹1,500 crore ($155 million) second fund, representing a 87.5% increase over its debut vehicle. The maiden fund, which raised ₹800 crore ($77 million), achieved final close in December 2025. According to Raiyaan Shingati, co-founder and managing partner, Transition VC expects to announce the first close of Fund II in the December quarter of fiscal year 2027.
The fund's timing capitalizes on growing institutional appetite for India's energy hardware sector, traditionally viewed as capital-intensive and unsuitable for venture investment. This narrative has shifted following India's announcement of ambitious energy transition targets. In March 2026, Union Cabinet Minister for Electronics and Information Technology Ashwini Vaishnaw announced that India aims to achieve 60% non-fossil fuel composition of its installed electric capacity by 2035—a commitment submitted to the UN as part of India's Nationally Determined Contributions. Such policy tailwinds have redirected venture capital toward companies building storage solutions and adjacent technologies rather than greenfield renewable energy projects, which remain capital-prohibitive for VC funding.
Transition VC plans to invest between $2 and $5 million in approximately 20 engineering-led startups across the four-year deployment period. While the firm's Fund I focused heavily on battery infrastructure companies, Fund II's investment thesis has broadened to include energy networks, thermal energy storage, advanced materials for energy-adjacent sectors, advanced manufacturing, industrial technologies, and geothermal energy. Shingati emphasized that the strategy involves replicating Fund I's operational model while leveraging substantially larger capital pools and expanded team resources to support portfolio company scaling.
The fund's expansion reflects a broader market conviction that venture-backed companies in energy infrastructure and adjacent sectors can achieve substantial scale and generate significant revenues, distinguishing them from legacy greenfield renewable projects that require institutional or project-finance capital structures.
The fund's timing capitalizes on growing institutional appetite for India's energy hardware sector, traditionally viewed as capital-intensive and unsuitable for venture investment. This narrative has shifted following India's announcement of ambitious energy transition targets. In March 2026, Union Cabinet Minister for Electronics and Information Technology Ashwini Vaishnaw announced that India aims to achieve 60% non-fossil fuel composition of its installed electric capacity by 2035—a commitment submitted to the UN as part of India's Nationally Determined Contributions. Such policy tailwinds have redirected venture capital toward companies building storage solutions and adjacent technologies rather than greenfield renewable energy projects, which remain capital-prohibitive for VC funding.
Transition VC plans to invest between $2 and $5 million in approximately 20 engineering-led startups across the four-year deployment period. While the firm's Fund I focused heavily on battery infrastructure companies, Fund II's investment thesis has broadened to include energy networks, thermal energy storage, advanced materials for energy-adjacent sectors, advanced manufacturing, industrial technologies, and geothermal energy. Shingati emphasized that the strategy involves replicating Fund I's operational model while leveraging substantially larger capital pools and expanded team resources to support portfolio company scaling.
The fund's expansion reflects a broader market conviction that venture-backed companies in energy infrastructure and adjacent sectors can achieve substantial scale and generate significant revenues, distinguishing them from legacy greenfield renewable projects that require institutional or project-finance capital structures.
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