India: Next Orbit Ventures launches second $750m fund to back startups in electronics space

Ajay Jalan, founder & MD of Next Orbit Venture Fund. Image source from his LinkedIn profile.

Mumbai-based venture capital fund Next Orbit Ventures has launched its second fund called ‘$750 Mn dollar Fund II’ to invest in startups in the electronic system and design manufacturing (ESDM) space including semiconductor chips, solar and LED components.

The $750 million fund will be used to invest in semiconductor fab, fab science park, solar and LED fab, IoT, healthcare and other ESDM products. Of the 750 million, about $160 million (Rs 1,040 crore) will be invested in one of the consortia, mandated by the central government to create a wafer fabrication plant, according to a statement.

“The fund is meant for long term of over seven years, and we will invest different ticket size based on the requirement. Fab investments will be in the range of $100 million as these are high end large scale investments. We are also looking at startup investments with a ticket size between $5 million and $30 million,” said Ajay Jalan, founder & MD of Next Orbit Venture Fund.

Currently, about five startups have been shortlisted for funding, the details of which would be announced in December this year, Jalan added.

Next Orbit has also announced that 19 portfolio companies, from its first fund worth $140 million, will be listed on the SEBI promoted Institutional Trading Platform to better improve transparency and enable exits.

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