Transition VC Initiates ₹1,500 Crore Second Fund Targeting Energy Sector
Transition VC is raising ₹1,500 crore (approximately $155 million) for its second energy-focused fund, nearly doubling its first fund's size. The firm aims to support startups in energy storage, thermal energy, and adjacent sectors, amid increasing investor interest in India's energy transition.
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Transition VC has commenced fundraising for its second energy-focused fund, targeting ₹1,500 crore (around $155 million). This fund is nearly twice the size of its inaugural ₹800 crore fund, which closed in December 2025.
The firm anticipates announcing the first close of Fund II in the December quarter of FY27. Transition VC plans to invest in companies in energy storage, advanced materials, and geothermal energy, following a successful focus on battery infrastructure in Fund I.
The firm is selective, targeting companies that have established products and positive unit economics, with investments typically ranging from ₹20-50 crore ($2-5 million). As India's energy storage market is projected to reach $3.9 billion by 2031, credible exit pathways for energy hardware and storage companies are emerging, enhancing the attractiveness for investors.
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