Early-stage venture fund pi Ventures, which invests in disruptive artificial intelligence (AI) and deep-tech start-ups, has announced the final close of its second fund with a total commitment of Rs 702 crores ($85 million). It has closed well above its base target of Rs 565 crores.

The fund is backed by multiple institutional players, including Nippon India Digital Innovation AIF, Accel, Colruyt, Premji Invest and entrepreneurs as well as entrepreneurs like Binny Bansal, Varun Alagh, Samit Shetty, Rajesh Ranavat, Anupam Mittal, Hemendra Kothari, Hitesh Oberoi, Ullas Kamath and Deep Kalra.

Some senior leaders from IBM, Facebook and Google also are involved in this fund. SIDBI  has also returned as a key investor in pi Ventures’ second fund with a commitment of Rs 100 crores from the Fund of Funds (FFS) for start-ups that it manages. This is nearly 2.5 times what FFS had invested in the first fund.

The fund will invest in start-ups focused on disruptive AI and other forms of deep tech across sectors including, but not limited to, space-tech, biotech, blockchain, and material science, among others. pi Ventures is focusing on early-stage (seed/ pre-Series A/Series A) investments via this fund and so far has invested in seven start-ups—ImmunitoAI, Ottonomy.IO, Silence Laboratories, Preimage, Zero Cow Factory—and two other ventures. The fund plans to invest in 20 to 25 such start-ups in the coming three years. 

“We are pleased to reaffirm our commitment to pi Ventures as Fund Second continues to focus on investing in AI and deep tech-led business models that will help foster technological innovation in key development areas,” said Chirantan Patnaik, director of Venture Capital, British International Investments.

“We are very excited to get to the final close in our second fund. It will enable us to back bold entrepreneurs solving global fundamental problems using innovative technology. India is a great place to build deep-tech companies," added Manish Singhal, founding partner of pi Ventures.

Established in 2016 by Singhal, pi Ventures closed its Fund I of Rs 225 crore in 2018. The first fund exceeded its target and was oversubscribed and has backed 15 deep tech start-ups, including Niramai, Pixis, Wysa, Agnikul, and Locus.