Author: Dev Patel | EQMint | General News

Mumbai, October 9, 2025 — In a major boost to India’s innovation and self-reliance agenda, Aavishkaar Group, a leading impact investment and fund management platform, has partnered with Jamwant Ventures, a venture capital firm focused on defence and deep technology, to launch a ₹500 crore fund aimed at supporting early-stage startups building next-generation technologies.

The new fund — titled Jamwant Ventures Fund 2 — will target 15 to 25 startups across the defence, aerospace, and deep-tech sectors, with a portion of the corpus reserved for follow-on rounds. The partnership is being positioned as a milestone collaboration that bridges Aavishkaar’s institutional investment expertise with Jamwant’s deep technical and operational insights into India’s strategic technology ecosystem.

A Strategic Collaboration for India’s Deep-Tech Ecosystem

The partnership operates under OneAavishkaar, a recently launched initiative by Aavishkaar Group designed to foster joint ventures with specialized fund managers. This marks the first partnership under the OneAavishkaar platform, demonstrating the group’s growing interest in frontier technologies that align with India’s national interests.

Under this collaboration, Aavishkaar Capital will bring its fund governance, institutional credibility, and operational support, while Jamwant Ventures will contribute its domain expertise in defence innovation and process understanding.

Vineet Rai, Founder of Aavishkaar Group, described the partnership as a “convergence of institutional strength and entrepreneurial foresight.”

“Through this partnership, we aim to support entrepreneurs working on technologies critical for India’s future. About 60–65% of the ₹500 crore corpus will be deployed in initial investments, with the remaining capital reserved for follow-on rounds,” Rai said.
“Our focus will be on startups at the Seed and Series A stages, where institutional capital and mentorship can make the most meaningful impact,” he added.

Driving India’s Defence and Dual-Use Technology Innovation

India’s defence and deep-tech startup ecosystem has seen a sharp rise in activity over the past few years, driven by policy initiatives such as ‘Make in India’, Atmanirbhar Bharat, and the Defence Production & Export Promotion Policy (DPEPP).

Jamwant Ventures Fund 2 aims to build on this momentum by investing in startups developing dual-use technologies — innovations that can serve both defence and civilian applications.

Navneet Kaushik, Founder of Jamwant Ventures, emphasized the importance of building cross-sectoral technology capabilities.

“We are investing in futuristic technologies — from autonomous systems and rocket engines to next-generation materials and electronics,” Kaushik said.
“You cannot build a strong nation if technology serves only one domain. It has to be cross-sectoral and cross-domain. Many of these innovations will strengthen India’s national security while also benefitting industries like aerospace, energy, and logistics,” he explained.

Kaushik also highlighted the importance of nurturing homegrown intellectual property in strategic technologies, an area where India is increasingly looking to reduce foreign dependency.

Jamwant Ventures’ Proven Track Record

This new fund follows the success of Jamwant Ventures Fund 1, which deployed capital across a diverse set of startups aligned with India’s defence indigenisation and national security goals.

As of September 2025, Fund 1 has invested in several notable ventures, including:

• Spacefields — a company developing solid rocket propulsion systems;
• TIEA Connectors — a manufacturer of military-grade electrical connectors;
• Aeronero — a startup pioneering air-water generation technologies; and
• Thrustworks Dyentics — focused on liquid rocket propulsion and advanced propulsion research.

These startups reflect Jamwant’s commitment to building a robust defence-tech ecosystem rooted in Indian innovation. The first fund’s performance has drawn significant attention from institutional investors and government agencies, setting the stage for the larger Fund 2 initiative.

Aavishkaar’s Broader Impact Investment Legacy

While Jamwant Ventures specializes in defence and dual-use innovation, Aavishkaar Group has long been recognized as a pioneer in impact investing in India and emerging markets. Founded by Vineet Rai in 2001, Aavishkaar has backed over 70 companies across diverse sectors including agriculture, fintech, sustainable manufacturing, and clean energy.

Its portfolio includes high-impact ventures such as AgroStar, GoDesi, Ergos, Vecmocon Technologies, Midland Bank, Utkarsh Small Finance Bank, Zouk, and Newtrace.

Aavishkaar’s track record of combining financial sustainability with developmental outcomes provides a strong institutional framework for Jamwant Fund 2. This collaboration signifies the Group’s intent to expand its investment thesis into frontier and strategic technology domains — areas increasingly linked to global sustainability, climate resilience, and digital sovereignty.

India’s Deep-Tech Moment

The timing of this new ₹500 crore fund coincides with a surge in investor interest in India’s deep-tech and defence-tech startups. According to data from industry trackers, deep-tech startups in India have attracted over $2.5 billion in venture funding in the last three years, with a growing share coming from specialized funds and corporate investors.

Government initiatives such as the Innovations for Defence Excellence (iDEX) programme and Defence India Startup Challenge (DISC) have further accelerated the growth of this sector, fostering collaboration between private enterprises, research institutions, and defence agencies.

Experts believe that partnerships like Aavishkaar–Jamwant will be instrumental in bridging the gap between research innovation and commercial scalability, a long-standing challenge in India’s defence R&D ecosystem.

“The convergence of capital and expertise through structured funds like Jamwant Fund 2 will catalyze the growth of India’s deep-tech innovation pipeline,” said an industry analyst. “This is exactly what the ecosystem needs to compete globally in critical technology areas.”

Looking Ahead

With its dual focus on defence innovation and deep-tech entrepreneurship, Jamwant Ventures Fund 2 aims to support 15–25 startups in the coming years, each working on technologies that could redefine India’s industrial and strategic landscape.

The fund’s structure — with a balanced allocation for seed and follow-on rounds — ensures long-term support for startups as they transition from prototype to scalable production.

Aavishkaar’s institutional platform and Jamwant’s sectoral expertise make this partnership a powerful force in India’s emerging innovation economy. Together, they represent a vision for a self-reliant, technology-driven India where defence, sustainability, and innovation intersect.

References

1. Business Standard — “Aavishkaar Group, Jamwant launch Rs 500-cr fund for defence, deep tech”
2. VCCircle — “Defence-focussed Jamwant Ventures partners with Aavishkaar Capital to float second fund”
3. YourStory — “Aavishkaar Group partners with Jamwant Ventures to launch Rs 500 Cr fund focused on defence and deeptech”
4. GoodReturns — “Aavishkaar Group ties up with Jamwant Ventures for Rs 500 Cr fund linked to defence, deeptech”

Disclaimer: This article is based on information available from public sources. It has not been reported by EQMint journalists. EQMint has compiled and presented the content for informational purposes only and does not guarantee its accuracy or completeness. Readers are advised to verify details independently before relying on them.