TVS Capital Funds aims to invest in two or three deeptech companies and a similar number of manufacturers through its fourth fund, Managing Partner Krishna Ramachandran told Mint, amid India’s research financing push.
In the interview, Ramachandran said the firm favors companies that create and own intellectual property. He identified AI infrastructure, defense, space, aviation and electronic components as areas of interest, distinguishing those businesses from manufacturers whose technology use centers on computer-controlled equipment. Mint reported that TVS Capital is considering investments of ₹3 billion to ₹5 billion per company in these areas. Ramachandran also described two possible investments in financial services.
India’s Ministry of Science and Technology announced the first 19 managers for its ₹1 trillion Research, Development and Innovation Fund on Oct. 12. Their combined government commitments total ₹71.31 billion. The group consists of 14 alternative investment funds and five focused research organizations.
The Times of India and Business Standard identified TVS Capital among the managers. The ministry’s announcement did not name the firms or give their individual allocations. Mint reported that TVS Capital had applied for ₹2 billion from the program and had not received formal confirmation of an individual commitment.
The ministry says the fund is intended to address a financing gap for research in emerging and strategic technologies and reduce reliance on imported technology. It expects managers to bring in private capital matching the fund’s contribution and direct financing to eligible enterprises conducting research, development and innovation activities at Technology Readiness Level 4 or higher.
TVS Capital has already backed AI infrastructure provider Neysa. In a Feb. 16 financing announcement, Blackstone named TVS Capital among Neysa’s equity investors and said Blackstone and its co-investors were providing up to $600 million in equity. Neysa intended to seek another $600 million in debt financing, subject to documentation. The announcement did not specify TVS Capital’s share.
Ramachandran expressed caution about AI valuations. “You don’t want to be left holding the bag,” he told Mint.
The ministry plans to invite applications for additional groups of managers but gave no date for the next selection.
