The Bengaluru-based firm said the new vehicle will invest between $500,000 and $3 million in IP-led firms across these sectors.
The launch marks a scale-up for the investor, formerly known as Veda VC, which deployed around $55 million across its first two funds. Founded by Vasant Rao, Avijeet Alagathi, and Ashis Nayak, the firm’s portfolio includes over 35 companies such as Simplismart, Alt Carbon, Sisir Radar, and Avammune.
The founders have previously been associated with exits such as Autoninja’s acquisition by ICICI Lombard and BYG’s acquisition by Curefit.
“India is at an inflection point for deeptech, AI, and climate tech, with a new generation of globally relevant companies being built from here. These are foundational technologies that will reshape industries over the next decade,” said Alagathi, partner, Shastra VC.
Through its earlier funds, the firm has invested across spacetech, semiconductor design, advanced manufacturing, AI, and biotech, supporting startups from early product development to commercial expansion. Several portfolio companies are now expanding into overseas markets.
Recently, ET reported that Simplismart was in advanced talks to raise a $20 million round led by NVIDIA at a valuation of around $100 million.
Deeptech funding
Shastra VC’s latest fund comes amid a broader push towards deeptech and strategic technologies in India.
The government has operationalised the Rs 1 lakh crore Research, Development and Innovation (RDI) scheme, with the first set of disbursements announced on May 13, 2026. The programme is focussed on sectors such as space, robotics, drones, advanced healthcare, and battery technologies. Earlier this year, Unicorn India Ventures and IIT Madras announced a Rs 600 crore deeptech fund.
Separately, Piper Serica launched the Rs 800 crore Bharat Tech Fund to back IP-led startups across semiconductors, advanced electronics, spacetech, deftech, and biosciences. Several other micro-VC funds around deeptech have been increasingly looking for opportunities.
