Early-stage deeptech venture capital firm Seafund is targeting 18-20 investments by FY27 from its Rs 250 crore Fund II, with a near-term plan of making 6-8 new investments in FY26. The Bengaluru-based firm is shaping its portfolio around deeptech, AI SaaS, mobility, and sustainability, with sub-sectoral interests in semiconductors, space, dual-use defence, IoT & robotics, cybersecurity, biotech, EV infrastructure, clean energy, fintech infra, and smart manufacturing.
Having launched Fund II in late 2023, the firm has already made seven new investments and three follow-ons, backing startups such as Consint AI, Take Me 2 Space, Swapp Design, and Docker Vision. The fund is still in its early deployment phase, and valuations are premature, said Manoj Agarwal, managing partner at Seafund.
The firm, founded in 2015, had launched its maiden micro fund in 2018, investing in 14 early-stage tech ventures, including Genrobotics, Finsall, Advarisk, and Clootrack. As of March 2024, Fund I has delivered a 4.1x return on invested capital, with an average holding period of four years.
Seafund is now poised to close a semiconductor deal in the high-performance computing (HPC) domain. “By funding early-stage efforts in semiconductor design and generative AI, we are not only mitigating long-term risks but also catalysing a transformative ecosystem,” said Agarwal. “This is essential to positioning India in the global AI race,” he added.
According to Agarwal, the deeptech sector is maturing fast in India, driven by government support, ecosystem development, and a growing base of successful ventures. He cited a recent Nasscom-Zinnov report, which noted a 78% increase in deeptech startup funding in 2024, reaching $1.6 billion, with the number of deals up 24%.
However, he cautioned that challenges remain. “While certain initiatives are promising, timely implementation will be critical. Also, talent development must go hand-in-hand with funding for deeptech startups to flourish,” he added.