Deep-tech DNA: How UIV Fund III is Repositioning Indian VC Towards Semiconductors, Space & Bioengineering
- Editor
- Oct 28
- 5 min read
by KarNivesh | 28 October, 2025
India’s venture capital industry is going through a massive change. Earlier, most investors were focused on consumer apps — from e-commerce and food delivery to ride-hailing and fintech. But now, the focus is shifting towards deep technology, or “deep tech” — areas like semiconductors, space technology, and bioengineering that demand heavy research and innovation.
Leading this change is Unicorn India Ventures (UIV) with its ambitious Fund III, a ₹1,200 crore fund (about $142.8 million). But more than just size, what makes it special is its purpose — nearly 75–80% of this fund will go into deep-tech sectors. UIV is helping India move from being a “technology consumer” to a technology creator, supporting startups that could define the country’s technological future.
Understanding Deep Tech — Innovation Beyond Apps
“Deep tech” refers to businesses built on real scientific or engineering innovation. These companies spend years developing products before they reach the market. For example:
Semiconductor startups designing next-generation computer chips.
Space companies developing satellites or rocket technologies.
Biotech firms creating new medicines or sustainable materials.
Unlike “shallow tech,” such as apps that simplify existing services, deep tech builds entirely new capabilities. It involves long-term research, big capital, and specialized skills. But it also creates strong intellectual property (IP) that competitors can’t easily copy, making these companies strategically valuable for a nation.
The Rise of Unicorn India Ventures
Unicorn India Ventures was started in 2015 by Bhaskar Majumdar and Anil Joshi. Majumdar is an IIT Kharagpur graduate and Harvard Business School alumnus with entrepreneurial experience, while Joshi has years of investment expertise.
Their first fund — UIV Fund I — had a ₹100 crore corpus and invested in early-stage startups across fintech, SaaS, and deep tech. It became a huge success, returning nearly 6.8x the invested money and an internal rate of return (IRR) of 60%. A standout success was Open Bank, which gave UIV nearly 90x returns on a ₹7 crore investment.
Encouraged by this, Fund II launched in 2020 with ₹300 crore and continued to perform strongly. Now, Fund III — the biggest yet — has grown to ₹1,200 crore, with international investors joining for the first time, including those from the U.S., Indian institutions, and high-net-worth families.
Why UIV is Betting on Deep Tech
UIV’s decision to put most of its Fund III capital into deep tech is driven by several reasons:
Strong Government SupportIndia’s government has launched multiple programs to strengthen core technologies:
The India Semiconductor Mission — worth ₹76,000 crore ($9.1 billion) — to boost chip production and design.
A ₹10,000 crore Space Fund to invest in startups under the IN-SPACe program.
A ₹500 crore Technology Adoption Fund and multiple biotech support schemes under BIRAC that have grown India’s biotech sector to ₹6.72 lakh crore ($80 billion).
India’s Deep Talent PoolIndia already contributes 20% of the world’s semiconductor design workforce — over 2.2 lakh engineers. The country also hosts hundreds of space-tech startups and a thriving biotech ecosystem, giving it a strong base to grow.
Rising Deep-Tech InvestmentsIn just the first half of 2025, deep-tech startups in India attracted around ₹7,560 crore ($900 million) in investments. A new alliance between Indian and U.S. investors called the India Deep Tech Investment Alliance (IDTA) has committed ₹8,400 crore ($1 billion) to these sectors.
Shifting from Consumer Internet to B2B InnovationUIV’s co-founder Majumdar believes the consumer internet market is now saturated. Deep tech offers new, unexplored opportunities where smaller investors can back big breakthroughs early on.
Key Focus Areas of UIV Fund III
1. Semiconductors (About 25% Allocation)
Semiconductors are the “brains” inside every electronic device. India’s strength lies in chip design rather than manufacturing. Building a semiconductor fabrication plant costs around ₹84,000 crore ($10 billion), but designing chips is cheaper and uses India’s engineering talent effectively.
Through the Design Linked Incentive (DLI) scheme, the government is already supporting 23 chip design startups. UIV plans to back such fabless chip startups, investing roughly ₹16.8 crore ($2 million) per company — enough to move from prototype to commercial product.
India recently inaugurated two new design centers in Noida and Bengaluru, capable of advanced 3-nanometer chip design, marking a huge milestone for local innovation.
2. Space Technology (About 20% Allocation)
India’s space industry is booming, aiming to reach ₹36.96 lakh crore ($44 billion) by 2033. UIV is investing in this sector through startups like OrbitAID Aerospace, which is developing satellites that can refuel other satellites in space. This innovation could extend satellite life and reduce space debris — a major global challenge.
Other Indian space startups like Skyroot Aerospace, Agnikul Cosmos, and Pixxel are already making headlines with private rocket launches and advanced satellite technology. UIV’s investment helps these companies move from prototypes to real missions.
3. Bioengineering (About 15% Allocation)
Bioengineering combines biology and technology to improve human life. India’s biotech industry is already valued at ₹6.72 lakh crore ($80 billion) and is expected to grow to ₹12.6 lakh crore ($150 billion) by 2025.
UIV’s past biotech investments include Sascan Meditech, a healthcare device company from Kerala that focuses on affordable cancer care. The firm earned 6x returns from this investment. Fund III will continue investing in diagnostics, medical devices, and therapeutic innovations.
Indian startups like Pandorum Technologies (3D bioprinting), Oncostem Diagnostics (AI-based cancer prediction), and Sea6 Energy (seaweed-based biofuels) are transforming the field — and funds like UIV provide the capital and mentorship needed to scale them.
UIV’s “Mentor Capitalism” Approach
Unicorn India Ventures isn’t just an investor — it’s a mentor partner. The firm helps founders with:
Building leadership and operational teams.
Strengthening business models and supply chains.
Connecting them with global advisors and customers.
Supporting future fundraising rounds.
Around 60% of UIV’s portfolio comes from Tier-2 and Tier-3 cities, showing its belief that innovation can come from anywhere — not just metro cities like Bengaluru or Mumbai.
India’s Deep-Tech Ecosystem is Maturing
India’s ecosystem is getting stronger thanks to:
Government programs like Semicon India, IN-SPACe, and BIRAC.
IITs and IISc nurturing startups through incubators and labs.
Global collaborations like Microsoft–ISRO partnerships for spacetech startups.
Cross-border alliances such as IDTA bringing U.S. capital and expertise.
These developments show that India is not only funding innovation — it’s building an entire deep-tech ecosystem that can compete globally.
Challenges Ahead
Deep tech is exciting but not easy. Startups face:
Long R&D timelines (5–10 years before profits).
High capital needs for labs, prototypes, and testing.
Regulatory hurdles in biotech and space.
Shortage of specialized talent in chip design, biology, and aerospace.
However, investors like UIV, with patient capital and hands-on mentoring, are helping startups survive these challenges.
Looking Ahead: India’s Deep-Tech Decade
With Fund III, UIV is showing faith in India’s ability to lead the next wave of global innovation. The combination of strong government support, international investment, and world-class talent positions India for its “Deep-Tech Decade.”
As Bhaskar Majumdar puts it, UIV believes in “entering spaces where others are hesitant.” By backing bold ideas in semiconductors, space, and bioengineering, Unicorn India Ventures is not just funding startups — it’s helping build India’s future as a technology powerhouse.
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