Union Finance Minister Nirmala Sitharaman has launched the IITM Unicorn Frontier Fund-I in Bengaluru, an Alternative Investment Fund aimed at deep-tech startups. The launch took place during the seventh edition of IITMAA Sangam, the IIT Madras alumni annual conference.

The fund is a joint initiative of Unicorn India Ventures and IIT Madras, along with the IITM Research Park. It has raised 450 crore rupees in its first close against a total target of 1,000 crore rupees expected by December 2026, following SEBI approval.

The fund has already deployed around 55 crore rupees in four deep-tech startups: Hathor, Quanstra, Triolt Energy and Carbelim. It will provide 5 to 20 crore rupees in financial assistance to early-stage startups.

Sitharaman also released the book “Cashless Nation: How UPI Changed Everything” at the event. The fund is expected to give a strong push to India’s deep-tech ecosystem in the coming years.

The fund will invest 5 to 20 crore rupees in early-stage deep-tech startups. Its backers say India’s research institutions can produce world-class deep-tech companies with the right capital support. The four startups already funded work in areas like quantum technology and clean energy.