Yali Capital's ₹893 Crores Fund: Fueling India's Deep Tech Revolution

Yali Capital's ₹893 Crores Fund: A Catalyst for India's Deep Tech Revolution

The successful closure of Yali Capital's maiden deep tech-focused fund at ₹893 crores (~ US$104 million) marks a significant milestone in India's tech landscape. Exceeding its original target of ₹500 crores, this fundraising event underscores the growing confidence of global investors in India's deep tech capabilities.

A Strategic Focus on Cutting-Edge Sectors

Yali Capital's fund is uniquely positioned to support both early-stage (Seed, Series A) and late-stage (Series D and beyond) companies. The fund's primary focus areas include semiconductors, artificial intelligence (AI), robotics, genomics, aerospace/surveillance, and smart manufacturing. This broad spectrum of sectors reflects the fund's commitment to driving innovation across multiple fronts.

Key sectors include:

• Semiconductors**: Investing in companies like C2I Semiconductor, which is developing advanced chip designs for next-generation applications.
• AI and Robotics**: Supporting startups that are pushing the boundaries of automation and intelligent systems, such as Perceptyne, which specializes in AI-driven decision-making tools.
• Genomics**: Backing companies like 4basecare, which is revolutionizing personalized healthcare through genetic analysis.
• Aerospace and Surveillance**: Funding projects that enhance surveillance and monitoring capabilities in critical infrastructure.
• Smart Manufacturing**: Investing in technologies that improve efficiency and sustainability in manufacturing processes.

A Diverse Investor Base

Yali Capital's investor base is a testament to the fund's international appeal. The Limited Partners (LPs) include a mix of corporates, funds of funds, and notable individuals, each bringing unique expertise and resources to the table.

Notable investors include:

• Corporates**: Infosys, Qualcomm Ventures, and Tata AIG.
• Funds of Funds**: DPIIT Fund of Funds for Startups (managed by SIDBI), Self-Reliant India Fund, Evolvence, Singularity FOF.
• Notable individuals**: Kris Gopalakrishnan (Pratithi), Gopal Srinivasan (Founder, TVS Capital), Vallabh Bhansali (ENAM), Utpal Sheth (CEO, RARE Enterprises), Vishal Kampani (MD, JM Financial), Sanjay Nayak (Co-Founder, Tejas Networks), Nambi Seshadri (former CTO, Broadcom Wireless), and C. Srinivasan (Co-Founder, Cosmic Circuits).

Strategic Dual Structure

Yali Capital operates through a dual structure, comprising a SEBI-registered Category II Alternative Investment Fund (AIF) and a GIFT City-based feeder vehicle. This structure is designed to attract global investors and facilitate seamless capital flow. The fund has already made five significant investments and plans to expand its portfolio to eight companies by the end of the year.

The Vision and Impact

Mathew Cyriac, General Partner at Yali Capital, emphasizes the fund's strategic approach: "Nearly a third of our fund will be invested in late-stage deep tech companies. India has a real opportunity to build globally competitive public companies in this space. We are grateful to the global investor community for backing our vision."

Ganapathy Subramaniam, Founding Managing Partner of Yali Capital, adds: "We are deeply grateful for the overwhelming support from the global tech community. Two-thirds of the fund will be deployed in early-stage deep tech startups. We firmly believe in India's deep tech potential and are committed to backing visionary founders with patient capital."

The Bottom Line

Yali Capital's significant fundraising is not just a financial achievement but a strategic move that positions India at the forefront of the global deep tech revolution. By investing in cutting-edge technologies and fostering a robust ecosystem, the fund is poised to drive transformative change and create a new wave of innovation in India.