Yali Capital, a SEBI-registered Category II Alternative Investment Fund (AIF), has closed its inaugural deep tech-focused fund at ₹893 crore (approximately USD 104 million), surpassing its initial target of ₹500 crore and an additional ₹310 crore greenshoe option. The fund aims to support India’s deep tech ecosystem by investing in sectors such as semiconductors, AI, robotics, genomics, aerospace/surveillance, and smart manufacturing, targeting both early-stage (Seed, Series A) and late-stage (Series D and beyond) companies. The $4M investment by Yali Capital in C2i Semiconductors, announced on November 8, 2024, highlights a growing trend in India’s deep-tech sector. Yali Capital’s focus on chip design aligns with India’s push to become a semiconductor hub.
The fund operates through a dual structure, combining a SEBI-registered AIF with a GIFT City-based feeder vehicle to attract international investors. Yali Capital has already invested in five companies, including C2I Semiconductor, 4basecare, and Perceptyne, with plans to expand its portfolio to eight by year-end. The fund intends to deploy capital over the next four years, with one-third allocated to late-stage companies and two-thirds to early-stage startups.
Yali Capital’s investor base includes corporates like Infosys, Qualcomm Ventures, and Tata AIG, alongside funds of funds such as DPIIT Fund of Funds for Startups (managed by SIDBI), Self-Reliant India Fund, Evolvence, and Singularity FOF. Individual investors include Kris Gopalakrishnan (Pratithi), Gopal Srinivasan (TVS Capital), Vallabh Bhansali (ENAM), Utpal Sheth (RARE Enterprises), Vishal Kampani (JM Financial), Sanjay Nayak (Tejas Networks), Nambi Seshadri (former CTO, Broadcom Wireless), and C. Srinivasan (Cosmic Circuits).
Lip-Bu Tan, an advisor to Yali Capital, emphasized India’s deep tech potential, noting support from government, global corporations, and entrepreneurs. Mathew Cyriac, General Partner, highlighted the opportunity to build globally competitive public companies in India’s deep tech space. Ganapathy Subramaniam, Founding Managing Partner, underscored the fund’s commitment to supporting visionary founders with patient capital.
Headquartered in Bangalore, Yali Capital is led by Ganapathy Subramaniam, Cyriac, Partner Karthik Madathil, and CFO Sunil Patil.
