Venture capital firm Lavni Ventures establishes a new fund dedicated to financing innovative deep-tech startups.
Lavni Ventures, a venture capital firm based in Bengaluru, has recently launched its second fund with a corpus of Rs 200 crore ($22.8 million). The fund aims to invest in startups building tech-driven solutions to solve some of the world's "toughest" problems, particularly in the sectors of climate, healthcare, energy, and education.
Vasu Guruswamy, co-founder and general partner at Lavni Ventures, stated that the successful launch of Fund II validates their core thesis. "India's capital-efficient innovation models, depth of technical talent, and mature startup ecosystem make it one of the most compelling deep-tech investment markets globally," he said.
Lavni Ventures has previously backed companies in medtech, edtech, cleantech, and agritech, and it plans to continue this trend with its new fund. The firm claims to review over 800 deep-tech deals annually, and it will deploy Rs 2-8 crore at the seed to Series A stage, and Rs 8-15 crore for follow-on investments.
The firm's name, Lavni, means "future" in Haitian Creole, reflecting its mission to invest in the future of deep-tech startups in India. Lavni Ventures received SEBI registration last October for the Category-II vehicle, making it a SEBI-registered Category-II alternative investment fund.
Trends and Future Prospects
Current trends for deep-tech startups in India across climate, healthcare, energy, and education show strong growth, supported by increased investments and a maturing ecosystem. Deep-tech investments have doubled in early 2025, reaching $324 million across 35 deals, compared to $156 million in 19 deals in the same period last year.
SEBI-regulated funds, such as Yali Capital, are playing a significant role in this growth. Yali Capital, a SEBI-registered Category II Alternative Investment Fund (AIF), closed its maiden deep-tech fund at ₹893 crore (~USD 104 million), significantly exceeding its target of ₹500 crore.
The focus areas for deep-tech startups include healthcare, where genomics and AI are key domains attracting investments, and climate and energy, where deep-tech efforts in smart manufacturing and robotics can impact energy efficiency and climate technologies. In education, AI-powered solutions are becoming important, with investors backing startups that integrate AI into assessments and learning platforms.
The ecosystem is maturing with a strong pipeline of startups, especially in chip design and manufacturing. India is recognized as the world’s second-largest chip design talent pool, with efforts to convert this talent into global product companies underway. SEBI’s facilitation of Category II AIFs like Yali Capital enables structured, patient capital investments supporting visionary founders.
Lavni Ventures, alongside specialized AI and deep-tech investors, contributes capital and expertise to scale startups, focusing on execution and scaling towards public listing. These investors provide active support beyond capital, engaging closely with founders to scale operations and emphasizing long-term value creation over short-term gains.
In summary, the deep-tech startup scene in India is experiencing accelerated growth backed by regulatory frameworks like SEBI’s AIFs and strategic investments from entities including Yali Capital and Lavni Ventures. This robust support system enhances prospects across climate tech, healthcare innovations, energy efficiency, and AI-driven education, positioning India to become a global deep-tech hub.
[1] India deep-tech startup ecosystem [2] Yali Capital raises $104 million for deep-tech fund [3] The rise of deep-tech startups in India [4] SEBI-registered funds boost deep-tech startups [5] AI-powered education startups in India
[1] The deep-tech startup ecosystem in India is seeing rapid growth, particularly in sectors such as climate, healthcare, energy, and education, driven by increased investments and a maturing ecosystem.
[5] SEBI-registered funds like Yali Capital and Lavni Ventures play a crucial role in the growth of deep-tech startups in India, providing structured capital and active support for visionary founders, contributing to India's position as a potential global deep-tech hub.
