Bluehill VC to announce final close of maiden fund by end of 2025

Bluehill VC is targeting the final close of its ₹350 crore maiden fund by the end of 2025. The firm has already raised ₹225 crore and has made investments in deep-tech startups

Deep-tech investor Bluehill VC is targeting the final close of its first fund of ₹350 crore by the end of this calendar year, said its co-founder and general partner Manu Iyer.

 

The Chennai-headquartered investor, which received Securities and Exchange Board of India approval in May 2024, announced its first close of ₹80 crore in August that year, and has so far raised ₹225 crore. It has completed three investments in line with its plans to invest in four to five companies each year. The company aims to invest in 16-20 companies with an average ticket size of $1-$1.5 million over four years.

 

While the third investment is yet to be announced, the deep-tech investor has put money in EtherealX and Zebu Intelligent Systems. Bluehill VC invested nearly $1 million each in EtherealX, a startup developing a fully reusable 25-tonne launch vehicle, and counter-drone solutions firm Zebu Intelligent Systems, which has won three iDEX challenges and is working closely with the armed forces to indigenise India’s defence manufacturing.

 

“The government, private enterprise, and other larger funds are talking about deep-tech. I think it’s a great time to be an investor in this space and to be a startup in deep-tech and utilise all the policies, support, and capital that is now finding its way into this space today,” Iyer said. 

 

Those who have participated in the fund include former investee company founders, managing directors of large multinational corporations, the family office of a large pharma founder, founders with large exit outcomes, and other international investors.

 

The fund focuses on intellectual property-driven, early-stage startups in areas like energy, electric vehicles, semiconductors, defence, space, manufacturing, and robotics, among others. According to Iyer, a few companies in the pipeline are working in the fields of semiconductor metrology, satellite propulsion, and biotech.

 

Bluehill VC will also raise money from the Kerala Startup Mission Programme (KSUM), along with the Small Industries Development Bank of India (Sidbi). “We are expecting around ₹80 crore from Sidbi and KSUM, and paperwork is in progress,” Iyer said.