Former Defence Secretary Ajay Kumar has recently launched a venture capital fund to support early-stage startups operating in the defense, aerospace, and deeptech sectors. The INR 250 Cr Mounttech Growth Fund, spearheaded by Kumar, has garnered approval from the Securities and Exchange Board of India (SEBI) and has already received subscriptions exceeding its initial target. The fund, with its first scheme named Kavach, is set to further raise capital leveraging its green-shoe option for an additional INR 250 Cr.
Ajay Kumar, who will serve as the fund’s chairman, has appointed Ravi Sethia, a former senior executive in the telecom industry, as the fund’s chief executive officer. The fund has primarily been sponsored by Suryakant Dalmia, a board member of Dalmia Securities, alongside other high-net-worth individuals and domestic family offices as limited partners.
This strategic move by Kumar aligns with the current surge of interest from the Indian government in the aerospace, defense, and deeptech sectors. With initiatives like Make In India aimed at enhancing domestic defense production and reducing reliance on imports, coupled with the government’s significant investment in programs like the India AI Mission, the market is ripe for innovation and growth.
Furthermore, the Indian deeptech ecosystem, housing over 3,000 startups across diverse domains, presents a lucrative landscape for potential investments. The recent trend of Indian startups raising substantial funding, totaling $5.3 Bn in the first half of 2024, underscores the growing interest in the country’s tech and innovation sectors.
In a recent development, Bengaluru-based spacetech startup GalaxEye Space has partnered with iDEX to develop a multi-sensor fusion processing system for miniature satellites, catering to the Indian Air Force’s requirements. This collaboration exemplifies the increasing synergy between startups and government initiatives to drive advancements in critical sectors like defense and aerospace.
