NEW DELHI – A venture capital fund (VC) will be launched soon in India to boost research and development and intellectual property creation in the critical sectors of aerospace and defense.
Ministry of Defence
On Wednesday, he said.
At an industry conference, Ajay Kumru, the former Secretary of Defence, said: “I and some of friends take great pride in creating a fund that focuses on strategic sectors such as defense and aerospace. These sectors require significantly more capital and greater risk-taking than investments in software or ecommerce.”
He declined to reveal the amount of cash in the fund. “Within two months, we were able to meet not only the target amount but also go beyond it,” Kumar said.
Kumar said that the first time we will surpass our target is likely to be announced within the next two weeks.
The VC fund is important from a business perspective in the space sector, which serves both civil and defence customers. “This will grow in the future, and in a big way.”
The VC fund is expected to boost startups, as the primary contractors in this industry are still public sector undertakings. Kumar added that the fund would also support the defense export market and cater directly to the forces of defense.
“Given that 75% of the procurement for defense projects is for the domestic market, there is an opportunity for Indian industry to participate in this regard.” The latest iDEX program (Innovations for Defence Excellence), which has Rs 25 crores in grants available, will benefit the space sector.
According to Kumar, the defense sector has seen a surge in initial public offerings (IPOs), and this trend may also extend to the space industry. “In the next 2 to 4 years, we’ll see small and startup companies in the space sector enter the IPO market. This will provide an opportunity for investors that are currently putting their faith in this sector.”
Deeptech is a term used to describe engineering-led startups that are working on innovative solutions in technologies such as artificial intelligence (AI), machinelearning (ML), blockchain, quantum computing, and semiconductors. These startups have recently started attracting investor’s attention.
ETTelecom reported previously that US-based VC Celesta Capital aims at increasing investments in India for startups that can create products and solutions that are aimed at global markets.
“It’s an amazing market.” The space industry is booming for a variety reasons, including surveillance, Smart City Applications, Internet Access, and Defense areas”, Sriram Viswanathan told ETTelecom. He added that many opportunities are likely to be in play and the fund is optimistic about India’s potential.
Celesta has invested in ideaForge Agnikul and Tonbo Imaging.
ET’s June 17 edition reported that the Centre plans to introduce a national deeptech policy, which would create a fund of money to support companies in this area.
The National Deep Tech Startup Policy Consortium (NDTSP), in July 2023, released a draft policy for public comment and sought public input.
