888VC Launches INR 175 Cr Fund To Back Early Stage Deeptech Startups

With an eye on backing India’s emerging deeptech startups, Rohit Bafna-led early-stage accelerator 888VC has launched its maiden INR 175 Cr (about $19 Mn) alternate investment fund (AIF). Via its maiden Indian fund, 888VC Accelerator Fund, the investment firm bids to back early-stage startups operating in sectors like AI, deeptech and sustainability startups.

Over the next three years, it plans to invest in startups with an average ticket size between INR 2 Cr to INR 4 Cr. In a statement, 888VC said that it will focus on backing ventures that are building tech capable of scaling from India to other countries.

Founded by ex-100Unicorn VP Bafna in 2022, 888VC is a Bengaluru-based early-stage investment platform that acts both as a venture capital firm and a startup accelerator.

The firm claims to have deployed $12 Mn capital across 20 startups via its accelerator fund. The VC claims that its accelerator fund portfolio exceeds a $500 Mn valuation. Its portfolio includes the likes of cleantech startup EcoRatings, women hygiene-focussed D2C brand Sanfe, SaaS startup Finly, among others.

The firm’s maiden Indian AIF was registered with the SEBI in February 2025 as a category 1 AIF. In SEBI parlance, AIF Category I (AIF-I) refers to funds that invest in businesses considered socially or economically desirable and are therefore given certain incentives or concessions by the regulator.

Inc42 has reached out to 888VC to get more clarity on investments secured for the fund. The story will be updated based on their response.

The launch of 888VC’s maiden AIF comes at a crucial time for India’s deeptech ecosystem. Despite growing chatter, the sector still lags on early-stage funding compared to other sectors like ecommerce, fintech and others.

According to Inc42’s Indian Tech Startup Funding Report, H1 2025, advanced hardware and technology startups raised just $311 Mn across 43 deals in the first half of this year — a fraction of the capital flowing into ecommerce and fintech sectors.

On the policy front, the government has acknowledged the funding challenges in the space. Commerce minister Piyush Goyal recently admitted that the “numbers” from deeptech remain “disturbing”, with most startups struggling to scale beyond pilot projects. To address this, the Union cabinet in July cleared the INR 1 Lakh Cr research, development and innovation (RDI) scheme to push advanced technology development, which is expected to complement private funding efforts.

Meanwhile, private investors are also stepping up.Speciale Invest recently closed its third fund at INR 600 Cr, Yali Capital raised INR 893 Cr for its maiden deeptech-focused fund, and earlier this month, eight marqueeIndia- and US-based VCs came together to launch the India Deep Tech Alliance (IDTA), pledging $1 Bn over the next decade.

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