India’s 1st energy focused VC fund, Transition VC has launched its debut fund with a target corpus of Rs 400 crore, which also includes a greenshoe option of Rs 200 crore. The Bengaluru-based VC firm is looking to support up to 40 early-stage startups over the next three years, with a ticket size ranging from $500K to $1 million, focused on Energy Transition, E-Mobility, Green Hydrogen and Climate Tech.
Transition is among the new top energy venture capital firms will invest in a variety of energy industry that are experiencing change, including climate technology, net zero buildings, green hydrogen, energy storage, and e-mobility. 25% of the fund value would be set aside for investments in international firms in addition to Indian startups.
Transition VC has a focused strategy for its international investments, investing in developed market goods that might potentially be presented to a rising market like India.
Speaking on the fund launch, Raiyaan Shingati, Co-founder & Managing Partner of Transition VC, said, “Climate Change & Energy Transition is a business opportunity, as they demand reinvention of every segment of the industry. We are at the beginning of a new era! Major shifts like this don’t come around that often, but we are starting to see one now and it’s going to shape how people consume energy for decades to come.”
Energy Focused VC Fund Transition VC gets SEBI Nod
Raiyaan and Shoeb, who both have substantial experience in venture capital and global private equity, are in charge of managing the fund. Shoeb has experience in both investment banking and venture capital. The project just gained SEBI clearance, and it plans to complete the fund’s first close by the end of this year.
Mustafa Wajid, Transition VC’s General Partner, said, “Our objective is to bring together the best engineers, innovators, and like-minded partners who can help build a better future for all. With this fund, we shall ignite and amplify their entrepreneurial capabilities to develop and deploy sustainable solutions that enable a decarbonised world and solve key energy challenges. To support such startup teams at a pivotal juncture in their entrepreneurial journey, we will deploy a unique combination of capital and competencies at seed stages and help them scale up meaningfully.”
Transition VC foresees more than 12 Unicorns Coming from India
“We are optimistic and we see an opportunity of more than 12 unicorns coming from India in this decade just in the Energy Transition & ClimateTech space,” added Shoeb Ali, Co-founder & Managing Partner of Transition VC. Transition VC has a wide network of incubators, accelerators, fellow VCs, and corporates in the new energy domain who can collaboratively work with tech startups to run pilots and help them grow. With these networks, the fund aims to add immense value to its overall proposition, and facilitate better GTM, user acquisition, product distribution, hiring, and growth strategy for its portfolio startups.
The Energy Fund was established by a group of well-known businessmen and entrepreneurs, including Raiyaan Shingati, Mohammed Shoeb Ali, Mustafa Wajid, Naresh V. Narasimhan, Tejas Goenka, Saif Qureishi, and Rajesh Doshi. The team has substantial business running, constructing, and selling experience, as well as a successful track record in investments. They also have subject understanding in the energy transition industry.