Domestic investment capital is more crucial than ever before for fueling Indian aspirations, according to the founder of Chiratae.
Chiratae Ventures, a leading Indian venture capital firm, is strategically investing in emerging sectors such as SpaceTech and Quantum, with a focus on foundational technologies that are critical for India's technological sovereignty. This shift in strategy underscores the importance of domestic capital in maintaining control over strategic technologies and ensuring sustained ecosystem growth, particularly in transformative domains.
The rationale behind the emphasis on domestic capital is rooted in India's ambition to significantly advance its technology ecosystem and reduce dependency on foreign capital. T.C. Meenakshisundaram (TCM), the founder of Chiratae Ventures, draws a comparison to China, where over 60% of early-stage venture capital comes from domestic sources. This domestic funding has played a significant role in bridging China's technology gap effectively and even surpassing some developed countries in key areas.
Chiratae Ventures' strategy is designed to balance long-term value creation and liquidity. The firm has delivered consistent exits since 2012, reinforcing their commitment to sustainable ecosystem building. They have grown to manage $1.3 billion AUM across seven funds and have made over 139 investments, with 57 active companies.
TCM argues that in the next 20 years, some companies in the Nifty 50 may not even be born yet, emphasizing the importance of investing in private markets today to ride the wave of future growth. He invites Indian capital to not just watch India's innovation story, but to co-build it with Chiratae Ventures.
The firm's portfolio includes companies like Miko in Robotics and Pixis in AI-led marketing, which are addressing India's problems at a global level. Chiratae Ventures has been among the earliest backers of brands that helped shape their categories, such as Myntra, FirstCry, Lenskart, Flipkart, and many more.
With technology getting weaponized in geopolitical changes, TCM believes it is important for India to own core technologies such as cybersecurity, semiconductors, quantum computing, AI foundation models, and manufacturing. He believes the next frontier for Indian companies is to go global while solving deeper India problems, especially in Tier 2 and 3 cities.
Chiratae Ventures continues to focus on backing founders early, staying through their growth journey, and delivering value not just in capital, but in governance, insight, and global readiness. They have four IPOs, two more DRHPs filed, and another five to six in the pipeline for the next 2-3 years. The firm's program, Sonic, provides speed and clarity at the seed stage, while the Growth Fund aims to double down at Series C and beyond.
Despite the significant strides made by Chiratae Ventures, the venture capital industry in India still lags behind developed countries. VC investments in India represent just 0.05% of GDP, versus over 0.35% in the US, indicating a gap not just in capital, but in strategic capital allocation. TCM believes that domestic capital must participate meaningfully in this journey to access future technologies that may not be available in the public markets.
In summary, Chiratae Ventures is leveraging domestic capital to invest strategically in emerging sectors, focusing on foundational technologies critical for India's technological sovereignty. The firm's approach balances long-term value creation and liquidity, delivering consistent exits since 2012. TCM invites Indian capital to co-build India's innovation story with Chiratae Ventures.
- T.C. Meenakshisundaram (TCM) suggests that for India to maintain a competitive edge in technology, especially in sectors like cybersecurity, semiconductors, quantum computing, AI foundation models, and manufacturing, it's crucial to invest in private markets like those managed by firms such as Chiratae Ventures.
- For India to not only watch but contribute to its own innovation story, domestic capital must actively participate in the investment of foundational technologies in emerging sectors such as SpaceTech and Quantum, as shown by Chiratae Ventures' strategic approach, which also balances long-term value creation and liquidity.
