Transition VC, an energy-focused investment firm, announced the launch of its second fund, targeting a corpus of Rs 1,500 crore (about $155 million), per media reports.
The firm plans to back more than 20 engineering-led startups through the fund, with investments ranging from $2-5 million each over four years, starting in the third quarter of the current fiscal.
Transition VC closed its maiden fund at nearly $77 million (Rs 700 crore) in 2025, securing commitments from a diverse pool of limited partners, institutional investors, corporates, family offices, strategic partners, and industry leaders.
Founded by Raiyaan Shingati and Mohammed Shoeb Ali, Transition VC plans to double down on the “missing middle” of venture capital by investing in engineering-led startups building infrastructure for India’s energy transition.
Its focus areas include electrification, energy storage, industrial decarbonisation, alternative fuels, and next-generation manufacturing.
Transition VC has backed a slew of companies such as CIMware, Comminent, Matel, EMO, Hydgen, Dynolt, and Promethean, among others.
After a strong start to the year, fundraising by India-focused private equity (PE) and venture capital (VC) firms in 2026 has slowed sharply.
In the second quarter of 2026, India-focused vehicles raised just $569 million, down from $2.41 billion in the first quarter, according to data from Venture Intelligence. The number of funds that closed also fell from 25 to 10.
Among VC firms that have raised capital this year, Unicorn India Ventures held the final close of its third fund at $133 million, while Sauce VC raised $82 million for its Opportunities Fund.
