Transition VC has launched its second fund with a target corpus of Rs 1,500 crore, or about $150 million, to invest in Indian energy-transition startups across hardware, deeptech and infrastructure-linked climate technologies.
The new vehicle is more than twice the size of the firm’s Rs 700-crore maiden fund and is designed to back about 20 to 23 companies. Planned cheque sizes are expected to range from $2 million to $5 million, with deployment scheduled to begin in the third quarter of FY27.
The fund’s mandate covers the energy demand and supply value chain, positioning it around startups building industrial, hardware-heavy and technology-intensive solutions rather than purely software-led climate products. That focus makes the fund notable at a time when Indian deeptech founders often face longer development timelines, capital-intensive prototyping needs and slower commercial adoption cycles compared with mainstream SaaS or consumer internet startups.
Energy transition is becoming a broader venture category in India as corporates, utilities, manufacturers and policy institutions respond to grid modernisation, storage, electrification, industrial decarbonisation and renewable-integration requirements. A dedicated fund of this size gives early and growth-stage hardware companies a potential domestic capital pool for prototypes, pilots and manufacturing scale-up.
The launch also reflects a shift in venture appetite toward companies solving infrastructure and industrial constraints. These businesses typically need patient capital, customer access and engineering validation, but can become strategically important if they prove deployable across energy storage, distributed power, battery intelligence, energy efficiency, green mobility, industrial controls or grid resilience.
Transition VC’s second fund arrives as India’s deeptech financing ecosystem is trying to widen beyond AI software and digital services. By writing larger early cheques into hardware-led energy companies, the fund could help bridge a gap between lab-stage innovation and commercial deployments, particularly for startups that need working capital, component supply chains and field testing before scaling.
The fund’s size, sector focus and planned portfolio count also indicate a more concentrated strategy than broad-based seed investing. For founders in energy-transition infrastructure, it adds a specialist investor to a market where technical diligence, industrial partnerships and long-term policy alignment often matter as much as capital.
