TLDR:
- Ajay Kumar, former Defence Secretary, has launched a Rs 250 crore venture fund for defence startups.
- The fund aims to support early-stage startups in defence, aerospace, and deeptech sectors, leveraging government initiatives like iDEX.
Ajay Kumar, former Indian Defence Secretary, has launched Mounttech Growth Fund, a venture capital firm focusing on early-stage startups in the defence, aerospace, and deeptech sectors. With a total investment of Rs 250 crore, the fund has already garnered approval from Sebi and plans to expand further by invoking the green-shoe option for an additional Rs 250 crore. The fund’s first scheme, Kavach, is backed by sponsors like Suryakant Dalmia and several high-net-worth individuals and family offices. The fund aims to collaborate with other venture capital firms and incubators to source deals, with plans to finalize its first investment in the space sector soon. The fund’s strategic edge is reinforced by the involvement of top retired armed forces officers and industry professionals as advisors.
Ajay Kumar highlighted the opportunities for Indian startups in the defence and aerospace sectors, citing the significant government support provided through initiatives like iDEX. The iDEX programme, which offers grants and contracts to startups for developing products for the defence forces, has already cleared significant procurements. Kumar emphasized that domestic companies hold a substantial portion of defence procurement, providing ample opportunity for Indian startups to scale and innovate. The fund plans to capitalize on this potential by supporting early-stage startups in these sectors and contributing to the growth of domestic innovation in defence and aerospace.
