IIT Madras to launch ₹200 cr VC fund to back campus-born startups

IIT Madras to launch ₹200 cr VC fund to back campus-born startups

Supriya.Roy@timesofindia.com   06.07.2025

Bengaluru : IIT Madras is setting up a Rs 200 crore venture capital fund to invest in startups emerging from the institution, director of the institute V Kamakoti announced at the annual alumni gathering Sangam 2025 on Saturday. The fund, titled the IITM Alumni Fund, will mark a first-of its-kind initiative in India’s academic landscape, directly linking alumni capital with institute-affiliated entrepreneurship. “All of you can invest,” Kamakoti told the alumni audience. 

“This is your opportunity to work with great startups and technologies, and to grow along with your alma mater.” The fund aims to support early-stage companies founded by IIT Madras students, faculty, and alumni, and will invite contributions from the global IITM alumni network. Kamakoti cited a Tamil phrase, loosely translated as “giving returns to the giver,” to underline the dual value proposition of impact and returns. 

While operational details are yet to be formally released, the fund’s vision is bold: By 2032, Kamakoti wants to see one IPO per month from the IITM startup ecosystem. “If IIT Madras can’t do it, I don’t think India can,” he said. Another faculty member added that this initiative is likely the first such VC fund by an Indian academic institution aimed exclusively at nurturing its startup ecosystem. 

“We hope this will give rise to dozens of Tarun Mehtas,” he said, referring to the Ather Energy co-founder and IITM alumnus. The announcement comes at a time when IIT Madras has emerged as one of the country’s most prolific academic incubators, credited with spawning deeptech ventures across electric mobility, AI, and space tech. The fund is expected to institutionalise that pipeline and scale it with alumni-backed capital.