Quick Take
- Transition VC launched Fund II targeting Rs 1,500 Cr ($155.7 Mn) for energy deeptech startups.
- Fund I closed at Rs 723 Cr, returning 57% IRR and over 3x invested capital.
- Cheques of $2 Mn to $5 Mn across 20 to 23 companies, deployment starts October 2026.
In This Article
Bengaluru-based Transition VC Fund II has launched with a target corpus of Rs 1,500 Cr ($155.7 Mn), the firm announced on July 21, 2026, to back engineering-led energy and industrial deeptech startups.
The second vehicle from India’s first energy-transition focused fund follows a debut fund that closed at Rs 723 Cr in December 2025, nearly double its original Rs 400 Cr target. Investments from the new fund begin in October 2026 and run across four years, according to the firm’s announcement.
StartupFeed Insight
The number that matters here is not Rs 1,500 Cr, it is 57%. A 57% IRR (Internal Rate of Return) on a first-time energy fund inside three years is what unlocks institutional cheques for fund two, and that is exactly why existing LPs (Limited Partners) are increasing commitments. Watch the semiconductor and nuclear mandate closely. Those two additions signal Transition VC is moving from clean mobility into hard industrial infrastructure, where cheque sizes are larger and exit windows are longer. StartupFeed expects Transition VC to announce a first close of at least Rs 700 Cr before December 2026, ahead of its October deployment start. By Soumya Verma.
Transition VC Fund II: The Numbers Behind The Rs 1,500 Cr Target
Transition VC Fund II is a Rs 1,500 Cr ($155.7 Mn) venture fund targeting 20 to 23 hardware and deeptech companies across the energy demand and supply chain. The firm confirmed a cheque range of $2 Mn to $5 Mn (Rs 19.3 Cr to Rs 48.2 Cr) per company.
| Metric | Detail | Notes |
|---|---|---|
| Target Corpus | Rs 1,500 Cr ($155.7 Mn) | Company announcement, July 21, 2026 |
| Cheque Size | $2 Mn to $5 Mn | Rs 19.3 Cr to Rs 48.2 Cr per company |
| Portfolio Target | 20 to 23 companies | Hardware and deeptech only |
| Deployment Start | October 2026 | Q3 FY27, spread over four years |
| Fund I Corpus | Rs 723 Cr | Closed December 2025 against Rs 400 Cr target |
| Fund I Returns | 57% IRR, 3x+ MOIC | Achieved within three years, per the firm |
The most striking figure is the Fund I overshoot. A debut fund that closed 80.8% above its Rs 400 Cr target gives the firm unusual pricing power with new investors. Several Fund I backers are returning for Fund II, with some raising their commitment size.
About Transition VC
Transition VC is India’s first venture capital fund dedicated to the energy transition, founded by Raiyaan Shingati and Mohammed Shoeb Ali and headquartered in Domlur, Bengaluru. The firm backs engineering-led deeptech startups at the post-product, pre-product-market-fit stage across storage, mobility, industrial decarbonisation and alternate fuels. Its portfolio includes Emo Energy, Matel Motion, Hydgen, Dynolt, CIMWare, Comminent and Promethean Energy.
How will Transition VC deploy Fund II?
Transition VC will deploy Fund II across energy transition, advanced manufacturing and application engineering, expanding beyond the mandate of its first fund. The firm will also selectively evaluate semiconductors, nuclear energy, geothermal technologies and next-generation energy infrastructure.
Fund II is attracting strong interest from global institutions, corporate investors and family offices, said Raiyaan Shingati, co-founder and managing partner, Transition VC.
That LP mix matters for cheque velocity. Corporate investors in an energy fund often double as first customers, which shortens the pilot-to-purchase-order cycle for hardware startups. Fund I used the same playbook, drawing commitments from institutional investors, corporates, family offices and industry executives, per the firm’s December 2025 announcement.
What is the missing middle problem Transition VC Fund II targets?
The missing middle is the funding gap where a startup has proven technical feasibility and early commercial traction but has not reached product-market fit at scale. Transition VC uses this term to describe its entry point, and Fund II is built specifically for that stage.
Hardware startups sit in this gap longer than software companies. A battery pack or an electric motor needs tooling, certification and a factory before revenue compounds. Generalist funds usually price that timeline as risk and step back.
Transition VC’s answer is portfolio design. The firm builds complementary rather than competing positions, so suppliers, engineering feedback and enterprise introductions travel across the portfolio. That structure is visible on the firm’s stated investment approach, which underwrites the engineering first.
How does Transition VC compare with rival deeptech funds?
Transition VC Fund II enters a crowded 2026 deeptech fundraising market in India. Several firms are chasing the same capital-intensive engineering thesis with comparable corpus sizes.
| Fund | Target Corpus | Focus |
|---|---|---|
| Transition VC Fund II | Rs 1,500 Cr | Energy and industrial deeptech |
| Speciale Invest Growth Fund II | Rs 1,400 Cr | Deep science, Series A onwards |
| BYT Capital | Rs 180 Cr | Frontier deeptech, Rs 3-6 Cr cheques |
Speciale Invest targets Series A and later, per its December 2025 announcement. BYT Capital writes cheques roughly one-tenth the size. Transition VC sits between them with a sector lock on energy, which no rival Indian fund of this size currently matches.
What’s Next
The next checkpoint is a first close announcement, which the firm needs before its October 2026 deployment window opens. Watch whether semiconductor or nuclear names appear in the first three cheques, because that would confirm the mandate expansion is real rather than optional. Fund I took roughly 18 months from launch to final close. Will Fund II beat that timeline?
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