Deeptech Investment

Indian VC Firm Speciale Invest Targets $155M for Deeptech Fundraise

• ByStartupStory     |    December 19, 2025

Indian VC Firm Speciale Invest Targets $155M for Deeptech Fundraise

Bengaluru-based venture capital firm Speciale Invest is gearing up to raise $155 million for its third fund, focusing on deeptech sectors like AI, semiconductors, robotics, and climate tech, as Indian startups in these high-barrier domains attract growing global capital.

Third Fund Amid Deeptech Surge

Speciale Invest, known for early bets on defence tech unicorn Agnikul Cosmos and AI firm Krutrim, aims to close its Fund III at $155 million, up significantly from its $50 million Fund II in 2021. The target reflects surging LP interest in India’s deeptech ecosystem, bolstered by government initiatives like the India Semiconductor Mission and Deep Tech Fund of Funds. Managing partner Dilip Kumar confirmed the fundraise is in advanced stages, with first closes expected by mid-2026.

The firm plans to deploy 40-50 investments of $2-5 million each, targeting seed to Series A stages where deeptech founders face capital intensity and long gestation periods. Speciale’s thesis centres on hardware-software convergence, backing startups that solve India’s infrastructure bottlenecks—from chip design to autonomous systems and sustainable manufacturing.

Track Record Fuels Momentum

Since 2018, Speciale has backed 25+ companies, delivering outsized returns through exits like drone maker ideaForge’s IPO and strategic sales in AI vision tech. Portfolio standouts include NewSpace leader Agnikul (raised $60M+ total), battery innovator Log9 Materials ($100M+ raised), and edge AI player Lucid (acquired by global semis giant). Fund II’s IRR exceeds 40%, drawing commitments from family offices, corporates like Reliance and Tata, and international LPs including US endowments.

Deeptech now commands 20% of India’s $10 billion+ VC inflows in 2025, up from 5% pre-2022, driven by US-China tensions creating onshoring opportunities. Speciale differentiates via hands-on support—technical due diligence, go-to-market in regulated sectors, and global partnerships with fabs and defence primes.

Sector Focus: AI, Semis, Robotics, Climate

Fund III will double down on four pillars:

• AI/ML Infrastructure: Custom silicon, data platforms, and enterprise agents for Bharat-specific use cases like vernacular NLP and predictive agriculture.

• Semiconductors and Electronics: Analog/mixed-signal design, photonics, and power semis amid India’s $10 billion PLI scheme.

• Robotics and Automation: Humanoids, warehouse bots, and agribots tackling labour shortages in manufacturing and farming.

• Climate Tech: Next-gen batteries, green hydrogen, and carbon capture for net-zero goals by 2070.

Speciale seeks founders with PhDs or serial exits from IITs/IISc, prioritizing IP moats over hype. Investments like Sensehawk (solar AI, $30M raised) and Ather Energy (EV infra) exemplify its blend of moonshots and scalable tech.

LP Landscape and Challenges

Domestic LPs—high-net-worth individuals, Category II AIFs, and PSUs—will anchor 60% of the fund, with the balance from US/SEA family offices chasing India’s 8% GDP tech spend. Rising anchor commitments from SIDBI and National Investment and Infrastructure Fund signal policy tailwinds. However, deeptech’s 5-7 year timelines demand patient capital, contrasting quick-flip SaaS bets.

Challenges include talent repatriation, supply chain localization, and regulatory navigation in defence/space. Speciale mitigates via its “Ventures Studio” for co-building prototypes and C-suite placements.

Broader Implications for Indian Deeptech

Speciale’s oversubscribed fundraise underscores India’s shift from consumer tech to hardtech leadership. With 1,200+ deeptech startups vs. 100 in 2020, the sector could create 1 million jobs and $100 billion GDP by 2030. Success stories like Skyroot Aerospace’s Vikram-S launch validate the model.

For LPs, Fund III offers exposure to asymmetric returns in a derisked ecosystem—cheaper valuations (5-10x revenue vs. 20x globally), vast TAMs, and sovereign backing. Dilip Kumar positions Speciale as the “Sequoia of Indian deeptech,” bridging Silicon Valley playbooks with desi execution.

As geopolitical realignments favour neutral innovation hubs, Speciale’s $155 million war chest positions it to fuel India’s next wave of world-beating tech, from orbital rockets to quantum chips.

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