We are discussing Former Defence Secretary Ajay Kumar to Invest in Aerospace, Deep Tech, and Defense Startups:
Ajay Kumar, a former Defence Secretary, has announced plans to invest in early-stage deep tech, defense, and aerospace startups. The Mounttech Growth fund, worth $29.9 million, got approval from the market regulator, the Securities and Exchange Board of India. ET mentioned that Kumar’s VC fund also received a subscription of Rs 280 crore and is looking to invoke a green-shoe option to raise Rs 259 crore.
The people close to this deal mentioned this first scheme of funds called Kavach. Ajay Kumar will be the head chairman of the VC fund, and former senior telecom industry executive Ravi Sethia will be the chief executive. This fund is sponsored by the board member of Dalma Securities, Suryakant Dalmia. The funding round had participation from several known entrepreneurs and domestic family Offices as the Limited Partners. The fund’s main focus is to back early-stage startups in these sectors. The development came just at the time when defense, aerospace, and deep tech sectors were rising across India with the help of the central Government.
The union cabinet recently approved an investment of Rs 10,372 crore for India AI Misson. The country is focused on the “Make in India” scheme to reduce the reliance on imported defense equipment and increase the export of defense equipment and technology. The government aims to seize a share of 2.1 trillion USD in the global defense market. Deep tech startups increased to 3,000 across various sectors in India. The Indian government launched a new scheme to help MSMEs join the ONDC platform. The Indian e-commerce market is expected to grow at a CAGR of 19 percent and reach the $400 billion mark by 2030. This highlights the promising startup ecosystem for investment in India.
Inc42 mentioned in a report that the investments secured by Indian startups in the first six months of 2024 crossed 5.3 billion USD. Last month, Bengaluru startup GalaxEye Space secured a deal from iDEX to design a multi-sensor processing system for miniature satellites capable of carrying a maximum payload of 150 kg. The Ministry of Defence also worked with Pixxel under its iDEX scheme to manufacture miniature-sized multi-payload satellites for the IAF.
Conclusion
Former Defence Secretary Ajay Kumar floats VC fund to invest in early-stage deep tech, defense, and aerospace startups. The market regulator, the Securities and Exchange Board of India, approved Kumar’s Mounttech Growth fund, worth $29.9 million. The fund raised a subscription of Rs 280 crore and an additional Rs 259 crore through the green-shoe option. The first scheme of funds is rumored to be known as Kavach.
The firm raised funds with the participation of several known entrepreneurs and domestic family Offices as the Limited Partners. The development came after the government introduced various deals and schemes to help boost the Indian startup ecosystem. The country is focused on the Make in India program to reduce the import of defense equipment while increasing the export of defense equipment and technology.
