Shastra VC launches $100 million fund to support AI, climate tech and defence startups

Bengaluru-based venture capital firm Shastra VC has launched its third fund with a corpus of $100 million (about Rs 963 crore) to invest in early-stage startups working in deeptech, AI and climate tech.

The firm plans to invest between $500,000 and $3 million in intellectual property-led startups, with the fund focusing on sectors including space and defence technology, AI and renewable technologies. It will support companies from seed stage through Series A and later rounds.

Shastra VC, previously known as Veda VC, is led by Vasant Rao, Avijeet Alagathi and Ashis Nayak. The firm has invested in startups across space systems, semiconductors, advanced manufacturing, AI and biotechnology.

Shastra VC has deployed more than $50 million across its first two funds. Its website lists assets under management at more than $60 million.

It has invested in more than 30 startups and helped them raise more than $80 million in follow-on funding. Its portfolio includes Alt Carbon, Simplismart, Sisir Radar, Avammune and Sanlayan.

Rao and Nayak previously co-founded Autoninja, which was acquired by ICICI Lombard. Alagathi co-founded BYG, which was involved in a disputed acquisition arrangement with Curefit that was later settled out of court.

Shastra VC said its advisory network includes former Tech Mahindra CEO CP Gurnani and former Kotak Mahindra Bank executive C Jayaram, alongside specialists in biotech, semiconductors, climate and space technology.

The launch comes amid growing investor interest in India’s deeptech sector, supported by advances in AI, semiconductors, spacetech and robotics, as well as increased government backing for research-led startups.

Earlier this week, Piper Serica launched the Bharat Tech Fund, which is targeting Rs 600 crore with an additional Rs 200 crore greenshoe option, to back startups in semiconductors, AI, spacetech, defence technology and biosciences.