Speciale Invest’s ₹1,400 Crore Growth Fund II: Powering India’s Deeptech Revolution

In a market where deep-technology innovation often struggles for growth capital, Speciale Invest has launched a game-changing initiative to bridge the “deeptech funding gap.” With the unveiling of its ₹1,400 crore Growth Fund II, the Chennai-based venture capital firm is preparing to fuel a new era of commercially scalable, research-backed startups across India — a move that signals both confidence in and commitment to the nation’s deeptech ecosystem.

Addressing the Deeptech Funding Gap

While India’s startup ecosystem has attracted significant attention and capital over the past decade, deeptech startups — those built on complex science and engineering — still face a unique challenge: growth capital scarcity. Many such ventures successfully validate technology but stall when it comes to scaling operations and becoming profitable. Speciale Invest’s Growth Fund II aims to address this challenge head-on by backing companies that have already *de-risked their scientific foundations *and are ready to transition into commercially sustainable businesses.

According to Vishesh Rajaram, founding partner at Speciale Invest, India’s deeptech funding landscape does not lack seed-stage interest — the real gap lies in growth-stage capital. Many startups are ready to move from prototype or proof of concept to real-world deployments, but lack the resources to scale. This fund is explicitly designed to support that bridge.

What the ₹1,400 Crore Growth Fund II Means

Speciale Invest’s Growth Fund II is structured to back 12–15 deeptech startups, with average investments ranging from $5 million to $8 million per company. This is a notable expansion from the firm’s traditional focus on early-stage capital, highlighting a strategic shift toward growth stage and Series A/B investments — a segment that has historically been underserved in India’s deeptech space.

The sectors earmarked for investment include:

AI infrastructure and advanced computing
Spacetech and unmanned systems
Advanced manufacturing and energy storage
Quantum computing and climatetech
Health and biosciences
Defence technologies and maritime surveillance

This diversified strategy allows Speciale Invest to focus on deep scientific potential while also targeting high commercial impact areas where global demand continues to rise.

Leadership & Strategic Expansion

To lead growth-stage investments, Speciale Invest has appointed Vijay Jacob as General Partner, bringing extensive experience in portfolio strategy and scaling companies across sectors and geographies. This new leadership addition underscores the firm’s renewed focus as it transitions from early-stage bets to deeper commercial backing for companies ready to scale globally.

The fund also builds upon Speciale’s existing early-stage success. Over the past eight years, the firm has launched and managed multiple funds, including Fund I, Fund II, and the recently closed ₹600 crore Fund III, which exceeded its initial target of ₹500 crore. These earlier funds have supported a portfolio of more than 35 startups across climate tech, space, defence, manufacturing, and other high-impact verticals.

Deeptech Investing: A Paradigm Shift

Deeptech investing is inherently distinct from typical tech deals — it often requires longer timelines, greater capital intensity, and expertise in assessing scientific risk. Speciale Invest’s Growth Fund II is designed with this context in mind. Instead of chasing short-term cycles, the firm’s philosophy is centered on building technology leaders with deep moats — companies that not only innovate but also compete globally and generate long-term value.

Rajaram and co-founder Arjun Rao have been vocal about their long-term conviction in deeptech as a core driver of India’s innovation economy. Their decade-long investing journey has included successful early bets on companies like Agnikul Cosmos (space launch systems), Ultraviolette (performance EVs), and QNu Labs (quantum-secure cryptography), all of which underscore the firm’s deep understanding of foundational technology risk and potential.

What This Means for Founders

For deeptech founders in India, the launch of Growth Fund II represents more than just capital — it signals greater institutional belief in their ability to scale, compete, and lead globally. The fund’s focus on companies that have already validated their technology but need support for commercialization could help startups:

Attract larger follow-on investments
Build revenue-generating business models
Scale operations and production
Access global markets and partnerships

This shift may also encourage more founders to pursue hard technology innovation, knowing that growth-stage capital is becoming more accessible.

Conclusion — A Milestone for India’s Deeptech Future

Speciale Invest’s ₹1,400 crore Growth Fund II marks a significant milestone in India’s startup finance landscape. By targeting the critical “valley of death” between early validation and scalable commercialization, the firm is enabling the next wave of deeptech innovation — from unmanned systems to advanced AI hardware. As this fund begins deploying capital, it has the potential to reshape how deeptech companies scale, attracting both domestic and international investors looking for high-impact, frontier technologies emerging out of India’s vibrant ecosystem.

Speciale Invest’s ₹1,400 Crore Growth Fund II: Powering India’s Deeptech Revolution