Yali Capital's Rs 893 Crore Fund: A Catalyst for India's Deeptech Revolution

Yali Capital's Rs 893 Crore Fund: A Tipping Point for Indian Deeptech

The recent announcement of Yali Capital's maiden fund closing at Rs 893 crore ($104 million) marks a significant milestone in India's deeptech landscape. Exceeding the target corpus of Rs 810 crore, including a greenshoe option of Rs 310 crore, this fund underscores the growing investor confidence in India's technological innovation. The fund is poised to drive transformative change across multiple sectors, from semiconductors to genomics, and from AI to aerospace.

A Broad Coalition of Industry Leaders

One of the most notable aspects of Yali Capital's fundraise is the diverse group of investors backing it. Key participants include Infosys, Qualcomm Ventures, Tata AIG, DPIIT Fund of Funds for Startups (managed by SIDBI), Self-Reliant India Fund, and Evolvence. This coalition of technology giants, financial institutions, and government-backed funds highlights the broad-based support for deeptech innovation in India.

Strategic Focus on High-Impact Sectors

Yali Capital's investment strategy is centered on sectors with high growth potential and significant societal impact. The fund will allocate capital to early- and late-stage companies in the following areas:

• Semiconductors**: Investing in fabless chip design companies like C2I Semiconductor to bolster India's semiconductor ecosystem.
• Artificial Intelligence (AI)**: Backing startups that leverage AI for healthcare, manufacturing, and other industries, such as 4basecare.
• Robotics**: Funding robotics companies like Perceptyne to enhance automation in various sectors.
• Genomics**: Supporting advancements in genomics to improve healthcare outcomes and agricultural productivity.
• Aerospace/Surveillance**: Investing in companies that develop cutting-edge technologies for aerospace and surveillance applications.
• Smart Manufacturing**: Focusing on companies that drive innovation in manufacturing processes and supply chain management.

Early Success and Future Prospects

Yali Capital has already made strategic investments in five companies, demonstrating the fund's immediate impact. The portfolio includes C2I Semiconductor, 4basecare, and Perceptyne, among others. With plans to invest in three more companies by the end of the year, the fund is well on track to achieve its goals.

The Role of Government Initiatives and Geopolitical Factors

The surge in deeptech investments in India is not just a result of private sector interest. Government initiatives, a favorable geopolitical landscape, and rapid technological advancements are key drivers. According to data from Venture Intelligence, investments in deeptech companies doubled in the first four months of 2025 to $324 million across 35 deals, compared to $156 million from 21 deals in the same period last year.

Projections and Strategic Implications

Projections suggest that by 2030, India could become a major player in the global deeptech market, with a significant number of globally competitive public companies emerging from this sector. The strategic focus on late-stage investments, which will account for nearly a third of the fund, indicates a long-term vision to build sustainable and scalable businesses.

The Bottom Line

Yali Capital's Rs 893 crore fund is more than just a financial milestone; it is a catalyst for India's deeptech revolution. By fostering innovation and supporting promising startups, the fund is poised to drive transformative change across multiple sectors, positioning India as a global leader in technological advancement.