Yali Capital's Rs 893 Crore Fund: A Deep Dive into India's Deeptech Future

Yali Capital's Rs 893 Crore Fund: A Deep Dive into India's Deeptech Future

The announcement of Yali Capital's maiden fund closing at Rs 893 crore marks a significant milestone in India's deeptech investment landscape. Exceeding its target corpus of Rs 810 crore, this fund is poised to drive innovation and global competitiveness in sectors ranging from semiconductors to genomics.

A Strategic Exceedance of Targets

Launched in July last year, Yali Capital's fund has not only met but surpassed its initial target, thanks to a robust greenshoe option of Rs 310 crore. This provision allows the fund to capitalize on higher-than-expected demand, a clear indication of investor confidence in India's deeptech potential. The fund's success underscores a growing trend of institutional and strategic investors backing deeptech startups.

Diverse and Focused Investments

Yali Capital's investment strategy is designed to be both broad and deep. The fund will allocate capital across early- and late-stage companies, with a particular emphasis on cutting-edge technologies. Key sectors include:

• Semiconductors**: Investment in fabless chip design company C2I Semiconductor highlights the fund's commitment to advancing India's semiconductor capabilities.
• Artificial Intelligence (AI)**: AI startups will receive significant support, driven by the potential for transformative applications in healthcare, manufacturing, and more.
• Robotics**: Robotics companies like Perceptyne, which focuses on automation solutions, will benefit from Yali's investment, fostering innovation in smart manufacturing and surveillance.
• Genomics**: Healthcare startups such as 4basecare, which specializes in genomics, will receive the capital needed to develop groundbreaking medical technologies.
• Aerospace and Smart Manufacturing**: These sectors are critical for India's industrial growth, and Yali's investments aim to accelerate their development.

Expert Leadership and Vision

The fund is helmed by Ganapathy Subramaniam, a former partner at Celesta Capital, and Mathew Cyriac, the former private equity co-head for Blackstone in India and executive chairman of Florintree Capital Partners. Their combined expertise in venture capital and private equity ensures that Yali Capital will make strategic and impactful investments.

"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," said Cyriac. This vision aligns with the broader goal of fostering a robust deeptech ecosystem that can compete on a global stage.

A Collaborative Effort

Yali Capital's fundraise has seen participation from a diverse group of investors, including Infosys, Qualcomm Ventures, Tata AIG, DPIIT Fund of Funds for Startups (managed by SIDBI), Self-Reliant India (SRI) Fund, and Evolvence. This collaboration underscores the collective belief in India's deeptech potential and the role of strategic partnerships in driving innovation.

The Numbers Speak Volumes

The growing momentum in deeptech investments is evident from recent data. According to Venture Intelligence, investments in deeptech companies doubled in the first four months of 2025, reaching $324 million across 35 deals, compared to $156 million from 21 deals in the same period last year. This trend is supported by government initiatives, favorable geopolitical conditions, and rapid technological advancements.

The Bottom Line

Yali Capital's Rs 893 crore fund is more than just a financial milestone; it represents a significant step forward in India's quest to become a global leader in deeptech innovation. By providing the necessary capital and expertise, the fund will empower startups to develop cutting-edge solutions that can have a profound impact on various industries. As the fund continues to deploy capital, the future of India's deeptech sector looks bright and promising.