Shastra VC unveils $100M fund to fuel India's deeptech and AI startups

Shastra VC has launched its third fund with a $100 million corpus to back early-stage startups. The move follows strong growth in India’s deeptech sector and rising investor demand. So far, the firm has deployed over $50 million across its first two funds and now manages more than $60 million in assets. The new fund will target startups in deeptech, artificial intelligence, and climate tech. Investments will range from $500,000 to $3 million, focusing on intellectual property-driven businesses. Shastra VC plans to support these companies from seed stage through Series A and beyond.

Since its founding, the firm has backed over 30 startups, helping them secure more than $80 million in follow-on funding. Previous investments span space systems, semiconductors, advanced manufacturing, AI, and biotechnology. The leadership team—Vasant Rao, Avijeet Alagathi, and Ashis Nayak—brings deep industry experience to the table. Shastra VC’s advisory network includes former Tech Mahindra CEO CP Gurnani and ex-Kotak Mahindra Bank executive C Jayaram. Their involvement adds strategic weight as the firm expands its portfolio in high-growth tech sectors.

With its third fund, Shastra VC aims to strengthen its position in India’s deeptech ecosystem. The $100 million corpus will fund early-stage innovation while leveraging a network of seasoned advisors. The firm’s track record and sector focus suggest continued growth for its portfolio companies.