New fund · Climate, Energy & Sustainability

Transition VC launches Rs 1,500 crore fund II

By Startup Enthusiast · 21 July 2026

What they do

Transition VC is a venture capital firm investing in early-stage engineering-led startups

It launched Fund II with a target corpus of Rs 1,500 crore (~$150 million) to back 20-23 hardware and deeptech startups

Fund I generated a 57% IRR and over 3X MOIC within three years, attracting repeat investors

Transition VC launched Fund II with a target corpus of Rs 1,500 crore (~$150 million).
The fund will invest in 20-23 hardware and deeptech startups across energy demand and supply chain.
Cheque sizes will range from $2 million to $5 million per startup.
Investments are expected to start in October 2026 and will be deployed over four years.
The fund is attracting interest from global institutions, corporate investors, and family offices.
Several Fund I investors are participating in Fund II, some increasing their commitments.
Fund II continues the energy transition focus and expands to advanced manufacturing and application engineering.
It will explore semiconductors, nuclear energy, geothermal technologies, and next-gen energy infrastructure.

Transition VC calls this stage the 'missing middle' of venture capital for engineering-heavy businesses.
Fund II targets startups with proven technical feasibility and early commercial traction, before product-market fit at scale.
There is growing investor interest in industrial deeptech and climate technologies, with several firms launching dedicated climate/energy funds recently.

Transition VC is a venture capital firm that invests in early-stage engineering-led startups.
Its focus areas include electrification, energy storage, industrial decarbonisation, alternative fuels, and next-gen manufacturing.
Fund I backed 17 startups and plans a portfolio of up to 25 companies.
Fund I portfolio includes Emo Energy, Matel Motion, Comminent, CIMWare, Promethean Energy, Dynolt, and Hydgen.
Fund I was backed by institutional investors, corporates, family offices, strategic partners, and industry leaders/executives.

Fund II investments are expected to start in October 2026.
The fund will deploy capital over four years.
It will explore semiconductors, nuclear energy, geothermal technologies, and next-gen energy infrastructure.