Shastra VC launches $100 million AI, deeptech fund

Bengaluru: Deeptech-focused venture capital firm Shastra VC on Wednesday launched a $100 million fund to back early-stage startups in sectors including artificial intelligence, spacetech, defence and climate sciences, as investor interest in India’s deeptech ecosystem gathers pace.

The Bengaluru-based firm, formerly known as Veda VC, said the new fund will invest between $500,000 and $3 million in startups building intellectual property-led businesses across deeptech, AI and renewable sciences.

The launch comes amid rising investor focus on deeptech sectors such as defence technology, semiconductors, advanced manufacturing and AI infrastructure, driven by global geopolitical shifts and governments’ push for technological self-reliance.

Shastra VC said it has deployed around $55 million across its first two funds and currently manages about $100 million in assets. Its portfolio includes startups such as Simplismart, Alt Carbon, Sisir Radar and Avammune.

“India is at an inflection point for deeptech, AI and climate tech, with a new generation of globally relevant companies being built from here,” said Avijeet Alagathi, partner at Shastra VC.

The firm said the third fund will sharpen its focus on space and defence technologies, AI and renewable sciences, while increasing its ability to support startups beyond seed-stage investments.

Shastra VC is led by founder-operators Vasant Rao, Avijeet Alagathi and Ashis Nayak. Rao and Nayak had earlier co-founded Autoninja, which was acquired by ICICI Lombard, while Alagathi founded BYG, later acquired by Curefit.