IndusDC earmarks Rs 100 crore to co-build hard tech startups in India

The venture studio will identify technologies and lab stage ideas related to CO2 emission reduction primarily in the industrial and energy sector

In a first-of-its-kind blended finance model, IndusDC, a venture studio with a mission to cut down 1 gigatonne (GT) of CO2 emissions by 2035, has earmarked Rs 100 crore for FY25 and 26 to identify and co-build hard tech startups in India.

It will identify opportunities and support hard tech innovations primarily across the industrial and energy sectors, which contribute to more than 70 per cent of the global CO2 emissions, the venture studio said.

The studio aims to build 5 startups in the next 2 years in India and more than 50 globally over the next decade. It will act as a co-founder and work closely with its entrepreneurs in residence (EIR), taking lab stage ideas or IPs all the way up to PMF (product market-fit) stage.

 

It will oversee product development, pilot production, digital technology integration, customer validation and funnel, startup governance, team building and fund-raising support.

Each startup funded by IndusDC will have access to Rs 20 crore in capital as a combination of grants for tech development, equity for early revenue till profitability and debt or working capital for scaling beyond profitability.

This first-of-its-kind blended finance model (grant, debt and equity) enables hard-tech startups to focus on building value, minimising the need for continuous equity capital raise, it said.

The studio has already received a commitment agreement for the first 5 startups from Mirik Gogri of Spectrum Impact - family office of Aarti Industries Ltd promoters.

Kushant Uppal, founder and CEO of IndusDC, said the energy transition journey will create $40 trillion of new business opportunities, globally. Labs and inventors across the globe have the best technologies for CO2 emission reduction.

Uppal said the challenge lies in building ventures by identifying the right IP, building the right teams and processes, keeping customer focus and infusing appropriate capital along the journey of building the venture.

“At IndusDC, we are building platforms to address each stage of the startup as they scale from lab to market,” Uppal said.

“Our team is deeply committed to establishing the benchmarks for an IP-focused decarbonisation venture studio and making it an attractive asset class for investors,” Uppal added.

IndusDC is also backed by successful entrepreneurs and angel investors, including Ashish Gupta of Helion Venture Partners and Sri Myneni of Knoah solutions. The studio will be signing additional commitment agreements with strategic investors for grants, equity and debt over the course of FY25.

“I am inspired by IndusDC's goal of helping entrepreneurs solve climate problems that are at this time existential,” said Ashish Gupta, angel investor and co-founder of Helion Venture Partners.

Mirik Gogri, principal, Spectrum Impact, said IndusDC’s founding team is uniquely positioned to identify critical IP, entrepreneurs and build global ventures.

According to the International Energy Agency, the world emits over 37 billion tonnes of CO₂ (Carbon Dioxide) each year. China, US and India are among the top 3 largest emitters of CO₂ with Industrial CO₂ emissions contributing roughly 40 per cent of global emissions.