Deeptech focused venture capital firm Yali Capital has closed its maiden deeptech focused fund at Rs 893 crore, exceeding its target of Rs 500 crore and the Rs 310 crore greenshoe option.
The firm, which counts Intel CEO and veteran investor Lip-Bu Tan as one of its advisors, will look to invest across early stage companies—seed and Series A—and late stage companies which includes Series D and beyond.
Yali Capital’s Limited Partners (LP) base includes corporates like Infosys, Qualcomm Ventures, and Tata AIG. It has also received backing from DPIIT Fund of Funds for startups and Self-Reliant India Fund, among others.
Other marquee LPs include Infosys co-founder Kris Gopalakrishnan, TVS Capital founder, Gopal Srinivasan, and RARE Enterprises CEO Utpal Sheth, among others.
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Yali Capital operates through a dual structure which comprises of a SEBI-registered AIF and a GIFT city-based feeder vehicle that targets global investors. The VC firm has already made five investments in startups working on chip design and AI.
Its current portfolio includes C2I Semiconductor, 4baseCare, and Perceptyne. The firm said it is planning to expand its portfolio to eight companies by the end of this year.
“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,” said Ganapathy Subramaniam, Founding Managing Partner of Yali Capital.
The news comes rising interest in India’s deep-tech segment and venture capital firms are increasing writing cheques for these companies. YourStory had previously reported that between January and March, this year, 24 deeptech startups raised around $169 million, according to Venture Intelligence. That’s a significant uptick compared to the same period in 2024, when just 17 startups raised a total of $107 million.
This uptick is accompanied by VC firms trying to navigate and accommodate the unique needs of deep-tech firms, which includes longer gestation periods and heavy research and development.
Edited by Megha Reddy
