Fueling Deep Tech Dreams Bharat Innovation Fund typically invests at the pre-Series A and Series A stages.
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In a landscape often dominated by consumer tech and quick growth stories, Bharat Innovation Fund stands apart. Co-founder Shyam Menon shares insights into their unique investment philosophy, shaped by a commitment to deep technology and long-term value creation.
"Our core investment thesis revolves around backing early-stage, deep-tech startups that have the potential to become globally competitive innovators and market disruptors," Menon said. These are not businesses focused on minor improvements. Instead, Bharat Innovation Fund seeks out ventures that bring about fundamental changes in their industries, backed by intellectual property and visionary founders.
While many funds follow trends, Menon clarifies their approach is sector-focused but driven by technology. "We look for IP-driven disruptive tech innovations across sectors. Our primary areas of interest are artificial intelligence and advanced software, hardware innovations, and deep science, including biotech and materials," he stated.
The fund typically invests at the pre-Series A and Series A stages. This early entry allows them to provide strategic guidance and participate in shaping the trajectory of the startups. "It is the phase where we can create the most impact, and the potential upside is also the highest," Menon explained.
Bharat Innovation Fund's first fund, Fund-I, has a corpus of INR 500 crore (approx. USD 62.5 million). It currently holds a portfolio of 16 companies, including names such as Entropik, FireCompass, CreditVidya (which was acquired by CRED), PlayShifu, Detect Technologies, and Zumutor Biologics, among others.
Menon sees deep tech as underhyped, particularly in areas like biotech, hardware, and materials science. "While there is a lot of buzz around AI, deeper applications still do not receive the attention they deserve," he noted.
Bharat Innovation Fund applies the same rigorous evaluation criteria to startups in tier II and tier III cities as it does for those in metros. What matters most, according to Menon, are the strength of the team, the uniqueness of the technology, and the size of the problem being addressed.
Asked about regulatory and infrastructure constraints, Menon remains optimistic. "We definitely see a positive and supportive trend with ongoing reforms and a maturing ecosystem. We mitigate risks through strong governance and by co-investing with trusted partners."
Menon emphasises three traits he values in founders: domain expertise, hunger to succeed, and resilience. These qualities were evident in Detect Technologies, one of their early portfolio companies. "We partnered with them when the founder was still at IIT Madras. Their growth since then has been remarkable," he recalled.
Looking ahead, Menon believes deep tech, AI, and climate tech will drive the next wave of Indian venture investing. "These sectors are not just trends. They are the future of innovation and value creation from India," he concluded.
Facts:
- Fund size: INR 500 Cr (USD 62.5 Mn) — Fund-I
- Current Portfolio: 16
