IIT Madras to Launch ₹200 Cr Alumni-Backed VC Fund to Boost Deeptech Startups
- ByStartupStory | July 9, 2025
The Indian Institute of Technology (IIT) Madras is set to launch a ₹200 crore venture capital fund, named the ‘IITM Alumni Fund’, to support early-stage startups, with a strong focus on deeptech ventures. The initiative was announced during Sangam 2025, the institute’s annual alumni event held recently in Bengaluru.
The fund will operate as a professionally managed, independent legal entity and will follow standard venture capital practices. It will target startups that are in the pre-Series A to Series A stages, especially those incubated within IIT Madras’ startup ecosystem. The fund’s corpus is expected to come primarily from alumni and high-net-worth individuals (HNIs) affiliated with the institute.
“We aim to raise ₹200 crore in our first fund through alumni contributions,” said Prof. V Kamakoti, Director of IIT Madras. “This is an opportunity for our community to back strong startups and grow together. It also supports our vision of launching 100 deeptech startups every year under the Startup Shatam programme.”
IIT Madras has a strong track record of nurturing innovative ventures, with over 500 startups incubated to date. These ventures collectively command a valuation of over ₹50,000 crore (~$6 billion). Prominent success stories include Ather Energy, a leading EV manufacturer, and Uniphore, an AI unicorn—both founded by IIT Madras alumni.
The institute has also benefited financially from the success of its startups. For instance, it earned ₹1.13 crore from the sale of 35,241 shares in Ather Energy at the time of its IPO earlier this year.
Apart from the upcoming fund, IIT Madras continues to support entrepreneurship through its Incubation Cell, which offers funding, mentorship, infrastructure, and networking opportunities. The institute also operates specialized centres like Pravartak Technologies Foundation and Centre of Excellence in Sports Science and Analytics (CESSA) to back startups in niche areas. The incubation cell typically invests up to ₹5 crore in promising ventures in exchange for equity.
This new alumni-backed fund marks a significant milestone in IIT Madras’ ambition to build a thriving deeptech startup ecosystem and solidify its position as a leading innovation hub in India.
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