Exfinity Ventures Targets ₹1100 Cr for Deep Tech Fund IV

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AuthorVihaan Mehta|Published at:
Exfinity Ventures Targets ₹1100 Cr for Deep Tech Fund IV
Overview

Exfinity Venture Partners is launching its fourth fund, targeting ₹1,100 crore. The Bengaluru-based firm will maintain its early-stage focus but allocate more capital to follow-on rounds in deep-tech sectors. This strategy shift acknowledges the longer commercialization cycles for businesses in fields like AI, semiconductors, and quantum computing. Recent successful exits from Fund II, including Kinara.ai and Pixis, underpin this aggressive new funding drive.

Deep Tech Focus Powers New Fund

Exfinity Venture Partners has filed with India's Securities and Exchange Board (SEBI) to launch its fourth fund, aiming for a substantial ₹1,100 crore corpus. This move solidifies the firm's commitment to deep technology ventures, building on a track record that includes successful cross-border exits and a complete capital return from its 2016-vintage Fund II.

Strategic Shift to Follow-on Capital

While retaining an early-stage investment strategy, Fund IV will see a larger proportion of capital earmarked for follow-on rounds. This adjustment reflects the inherent longer build and commercialisation cycles typical of deep-tech businesses. Exfinity partners Chinnu Senthilkumar and Jesper Ludolph indicated that cheque sizes would increase modestly, with the firm continuing to target 10-20% ownership in its portfolio companies.

Expanding Deep Tech Horizons

The fund's focus areas include established deep-tech domains such as semiconductors, physical AI, advanced compute, robotics, and enterprise AI software. Exfinity is also strategically expanding into emerging categories like photonics, quantum computing, hydrogen and energy systems, life sciences, climate technology, and mobility. The firm sees a maturing life sciences ecosystem in India, driven by founders with deep research backgrounds returning to establish companies domestically.

Extended Investment Horizon Validated

Exfinity expects to maintain longer investment horizons for select companies from the new fund. Senthilkumar noted the firm anticipates staying invested up to Series C for suitable deep-tech companies, as significant value creation often occurs through sustained support. This long-term approach is validated by past successes. Over the last year, the firm exited semiconductor startup Kinara.ai, acquired by NXP Semiconductors, a notable deep-tech M&A event in India. Additionally, Exfinity achieved a substantial 60X multiple on invested capital from an earlier partial exit of adtech firm Pixis, while retaining a significant stake.

M&A as a Lucrative Exit Path

Shailesh Ghorpade, Managing Partner at Exfinity Venture Partners, highlighted the growing importance of strategic M&A. "Repeated acquisitions of Indian-origin deeptech companies by Fortune 500 and multinational buyers show that strategic M&A has become a highly viable and lucrative exit path—on par with IPOs, growth-stage up-rounds, and private equity outcomes," Ghorpade stated. This trend provides founders and investors with more reliable global liquidity options.

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