8X Ventures Announces First Close of Second Deeptech Fund at Rs 200 Crore

Early-stage venture capital firm 8X Ventures has announced the first close of its second India-focused deeptech fund at Rs 200 crore, including an additional Rs 100 crore as a green shoe option. This fund aims to back 18-20 early-stage Indian deeptech startups over the next three years, with initial investments ranging from Rs 2-5 crore each and a goal of investing up to Rs 20 crore each in 8-10 startups.

Chirag Gupta, managing partner of 8X Ventures, highlighted the promising opportunities in the Indian deeptech ecosystem compared to regions such as the US, Europe, Singapore, and the Middle East. "The Indian deeptech ecosystem offers much better return opportunities," Gupta told ET. The fund will focus on sectors such as water sanitation and hygiene (WASH), Industry 4.0, advanced computing, biotech, and business-to-business (B2B) enterprise SaaS.

8X Ventures aims to invest in startups with developed technologies, sustainable competitive advantages, and accessible markets. Gupta emphasized that the new fund aligns with India's national growth policies, including manufacturing, deeptech, and healthcare. The firm has previously invested in these sectors, providing familiarity and expertise.

The firm's first fund, launched in 2022 as a global fund, invested in 14 companies and has been fully deployed. The new fund has already secured commitments of over Rs 60 crore from family offices and high-net-worth individuals (HNIs). Notable investments from 8X Ventures include robotics and sanitation innovator Solinas Integrity, industrial IoT enterprise XYMA Analytics, synthetic biology startup D-Nome, technology firm Lightspeed Photonics, and data analytics firm Zenpulsar.

Since its inception in 2021, 8X Ventures has delivered a 2.1-times multiple on invested capital (MOIC) with a 40% plus internal rate of return (IRR) since 2022. Gupta stated, “The companies emerging from this sector are poised to address fundamental global issues and generate substantial shareholder value. We are investing in companies that pioneer their categories, introduce fundamentally new technologies, and, most importantly, demonstrate a robust, clear strategy to achieve commercial success.”

The announcement comes amidst a flurry of activity in the venture capital sector. On May 1, ET reported that venture debt firm Stride Ventures announced the final close of its third fund at $165 million (about Rs 1,377 crore). On April 30, early-stage venture capital firm IvyCap Ventures announced the final close of its third fund at Rs 2,100 crore (around $250 million). Additionally, technology-focused investor Filter Capital made the final close of its first fund at Rs 800 crore ($96 million) in early April, and Cactus Venture Partners closed its first fund with a corpus of Rs 630 crore ($76 million) in February, focusing on climate tech, enterprise software, and health tech startups.

With this new deeptech fund, 8X Ventures is well-positioned to drive innovation and growth in India's burgeoning deeptech landscape, fostering startups that address critical global challenges and deliver significant economic impact.