Transition VC has unveiled its second fund, targeting ₹1,500 crore, to invest in engineering-led startups focused on energy transition and adjacent sectors.
New Delhi, India Jul 21, 2026 ALN: Transition VC, a venture capital firm based in Bengaluru, has recently announced the launch of its second fund, targeting a substantial corpus of ₹1,500 crore. This move comes as part of the firm’s ongoing commitment to driving innovation in the energy transition segment, a critical area of focus given the global emphasis on sustainability and clean energy solutions.
The firm previously raised ₹723 crore through its inaugural fund, which has reportedly delivered impressive returns. Transition VC claimed that the first fund achieved a 57% internal rate of return (IRR) and generated more than three times the multiple on invested capital (MOIC). This performance sets a strong precedent for the new fund, indicating a robust interest in energy technology investments in India.
With its second fund, Transition VC aims to invest between $2 million to $5 million in over 20 engineering-led startups over a four-year period, commencing in the third quarter of the current fiscal year. This strategy highlights the firm’s focus on nurturing early-stage companies that are poised to make significant contributions to the energy sector.
The firm has already secured continued participation from several existing investors, with some limited partners from Fund I increasing their commitments. This indicates a high level of confidence in Transition VC’s investment strategy and its ability to identify promising startups in the energy transition space. Additionally, there is growing interest from global institutions, corporate investors, and family offices, which underscores the international appeal of investing in energy innovation in India.
Raiyaan Shingati, Co-Founder and Managing Partner of Transition VC, emphasized the transformative potential of energy generation and consumption. He noted that recent geopolitical events have underscored the importance of energy security, which he argues is now as critical as energy sustainability. Shingati believes that India is uniquely positioned to lead the global energy transition, leveraging its vast domestic market alongside globally competitive engineering talent and cost-effective manufacturing capabilities.
Shingati further articulated the firm’s conviction that breakthrough technologies can facilitate decarbonization while simultaneously improving the speed, cost, and quality of energy and industrial systems. This perspective aligns with the broader global trend towards sustainable energy solutions, which are becoming increasingly vital in the face of climate change and resource scarcity.
Transition VC reported zero write-offs in its first fund, a remarkable achievement that reflects the firm’s rigorous selection process and commitment to backing viable startups. Several of the companies funded through Fund I have already reached profitability, secured follow-on funding, and are on track to achieve annual revenues exceeding ₹100 crore. This success story illustrates the potential for venture capital to not only generate financial returns but also drive meaningful advancements in energy technology.
The firm’s focus on the "missing middle" of venture capital investment is particularly noteworthy. This segment includes companies that have demonstrated technical feasibility and early commercial traction but have not yet achieved product-market fit at scale. Transition VC believes this stage is significantly underserved in the venture capital landscape, presenting an opportunity to invest in engineering-led businesses before their commercial validation is fully recognized by the market.
Transition VC's strategy for Fund II builds on the foundation laid by Fund I, which concentrated on energy technology startups targeting the Indian market. However, with the new fund, the firm plans to broaden its scope by supporting companies that not only innovate within the energy sector but also manufacture products in India for global markets. This expansion reflects a strategic shift towards a more international perspective, recognizing the potential of Indian startups to compete on a global scale.
In addition to continuing its investment thesis focused on the energy transition, Fund II will also explore adjacent sectors such as advanced manufacturing and application engineering. This diversification could enhance the fund’s ability to identify and capitalize on emerging trends within the broader energy landscape.
Moreover, Transition VC is poised to selectively evaluate opportunities in other areas, including nuclear energy, geothermal energy, and next-generation energy infrastructure. These sectors are gaining traction as the world seeks innovative solutions to meet its energy demands while addressing environmental concerns. By positioning itself at the forefront of these developments, Transition VC aims to play a pivotal role in shaping the future of energy technologies.
The implications of this fund launch extend beyond financial metrics; it represents a significant commitment to fostering innovation in the energy sector. As countries around the world grapple with the challenges posed by climate change and energy insecurity, the role of venture capital in supporting the development of sustainable technologies becomes increasingly important. Transition VC’s focus on engineering-led startups aligns with the need for technological advancements that can drive the energy transition forward.
In conclusion, the launch of Transition VC's ₹1,500 crore Fund II marks a significant milestone in the firm’s mission to support energy innovation in India and beyond. By investing in engineering-led startups and expanding its focus to include global manufacturing, the firm is positioning itself to capitalize on the growing demand for sustainable energy solutions. As the world continues to evolve in its approach to energy generation and consumption, the contributions of venture capital firms like Transition VC will be crucial in driving the necessary innovations that will shape the future of the energy landscape.
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