Transition VC launches ₹1,500 cr Fund II to double down on India’s energy transition opportunity

Raiyaan Shingati, Co-Founder and Managing Partner at Transition VC

Transition VC, energy transition-focused venture capital firm, has announced the launch of Fund II, with a target corpus of ₹1,500 crore.

The fund will invest $2–5 million in approximately 20 engineering-led startups over a four-year deployment period beginning in Q3 FY27.

The launch follows the successful deployment of Fund I, which closed at ₹723 crore, exceeding its initial target of ₹400 crore. Within three years, the fund has delivered a 57 per cent IRR and generated over 3x MOIC. The fund is targeting 1x DPI over the next three years. The portfolio has recorded zero write-offs, with several companies already profitable, securing follow-on funding, and scaling towards ₹100 crore-plus annual revenues.

Fund II will continue investing across the energy transition value chain while expanding into adjacent sectors such as advanced manufacturing and application engineering, reflecting the growing convergence between energy systems and industrial technologies. The firm will also selectively evaluate emerging opportunities in areas including nuclear, geothermal and next-generation energy infrastructure as part of its evolving investment strategy.

Rather than investing in competing businesses, Transition VC aims to build a complementary portfolio spanning different layers of the energy and industrial value chain, enabling portfolio companies to benefit from shared technical expertise, commercial partnerships and ecosystem synergies over time.

Raiyaan Shingati, Co-Founder and Managing Partner at Transition VC said, “The world is going to change the way it generates and consumes energy, and recent geopolitical events have reinforced that energy security is now as important as energy sustainability. India is uniquely positioned to lead this transition by combining one of the world’s largest domestic markets with globally competitive engineering talent and cost-efficient manufacturing. Our conviction remains that breakthrough technologies can deliver decarbonisation while making energy and industrial systems faster, cheaper and better. Building on the success of Fund I, which delivered over 3x MOIC in three years and validated our thesis, our goal is now to convert that MOIC into DPI over the next three years. Our goal with Fund II is to repeat the success of Fund I while allocating to new segments like Advanced Manufacturing, Semiconductors, Geothermal & nuclear value chain.”

Transition VC remains focused on the “missing middle” of venture capital—companies that have proven technical feasibility and early commercial traction but are yet to achieve product-market fit at scale (post-product- pre-PMF). The firm believes this remains one of the most underserved stages of venture investing, offering an opportunity to back engineering-led businesses before commercial validation is fully priced into the market.

Fund I was focused on backing energy technology startups serving the Indian market. With Fund II, we’re expanding that focus by backing companies that are not only innovating in energy, but also manufacturing from India for global markets. We’ll also invest in technology-enabled manufacturing across the energy value chain, where we believe significant long-term value will be created,” said Co-Founder and Managing Partner, Shoeb Ali, Co-Founder and Managing Partner, Transition VC.

Shantanu Chaturvedi, Partner at Transition VC said, “Our experience with Fund I reinforced that successful deep-tech investing comes down to three things: One, knowing when a technology is ready for commercial adoption. Second, understanding whether it can become a large, economically viable business. And third, backing founders with the resilience to navigate long product development cycles and changing market conditions. These principles continue to guide every investment we make through Fund II.”

The fund has already received continued participation from several existing investors, with multiple Fund I limited partners increasing their commitments. It is also witnessing strong interest from global institutions, corporate investors and family offices with deep expertise across the energy, engineering and industrial sectors.

Published on July 21, 2026