Piper Serica, a Mumbai-based asset management firm, has unveiled its latest initiative to bolster India’s burgeoning deeptech sector. The firm has launched the Bharat Tech Fund, a Category II Alternative Investment Fund (AIF), with a potential corpus of Rs 800 crore. This move underscores the increasing interest and investment in deeptech, a sector poised for significant growth in India.
### Piper Serica’s Strategic Move
Piper Serica’s Bharat Tech Fund is set to focus on Series A and Series B startups, particularly those involved in semiconductors, spacetech, defence technology, biosciences, and fintech infrastructure. The fund aims to gather Rs 600 crore, with an additional Rs 200 crore available through a greenshoe option. Investments will typically range from Rs 25 crore to Rs 50 crore, targeting a gross internal rate of return (IRR) of about 30% over a six-year holding period. The fund is expected to close by December 2023, positioning Piper Serica to make strategic investments in tech-driven startups.
Ajay Modi, Director at Piper Serica, emphasized the firm’s investment philosophy, focusing on founders with technical depth, leadership capabilities, and commercial discipline. The firm is collaborating with prestigious institutions like IIT Madras, IIT Delhi, IIT Bombay, and the Indian Institute of Science, among others, to identify promising investment opportunities. Their use of Yoda.ai, a proprietary AI screening platform, further enhances their ability to evaluate potential investments effectively.
### Context and Competition
The launch of the Bharat Tech Fund comes at a pivotal time for India’s deeptech landscape. With increasing global competition, Indian startups are now building Intellectual Property (IP)-led, engineering-first businesses that are not only domestically relevant but also competitive on a global scale. Piper Serica’s previous venture capital endeavors, such as their Rs 100 crore early-stage fund launched in 2022, have already supported 35 startups in the deeptech space. Notable investments include companies like Mysa, Sensesemi Technologies, and Vobiz.
India’s deeptech sector is witnessing a surge in interest, with both domestic and international investors recognizing its potential. The collaboration with government-backed innovation platforms like Innovations for Defence Excellence and IN-SPACe reflects a broader trend of public-private partnerships aimed at fostering innovation and growth in the sector.
### Implications for India’s Startup Ecosystem
The Bharat Tech Fund is likely to have a significant impact on India’s startup ecosystem, particularly for deeptech startups seeking early to mid-stage funding. By focusing on high-potential sectors such as semiconductors and spacetech, Piper Serica is not only providing necessary capital but also strategic guidance and industry connections that can accelerate startup growth. This initiative aligns with the Indian government’s push to promote self-reliance in critical technology sectors and could lead to the development of globally competitive tech solutions originating from India.
For founders and investors, the launch of this fund signals a robust opportunity to engage with and benefit from India’s deeptech revolution. As deeptech continues to evolve, the success of funds like Bharat Tech could set benchmarks for future investments and collaborations within the sector.
Looking ahead, Piper Serica’s progress with the Bharat Tech Fund will be closely watched by industry stakeholders. The fund’s ability to identify and nurture groundbreaking deeptech startups could have lasting implications for India’s position in the global technology landscape. Founders and investors should keep an eye on the fund’s deployment strategies and its partnerships with tech institutions, which may reveal new opportunities and trends in India’s rapidly advancing deeptech sector.
