Transition VC has launched efforts to raise ₹1,500 crore (approximately $155 million) for its second energy-focused fund, according to co-founder Raiyaan Shingati. The new fund is nearly double the size of its first fund, which closed at ₹800 crore (around $77 million) in December 2025. Shingati stated,
We want to repeat exactly what we did with fund one with far more resources, not just with capital but also with a team to support them to scale.
The firm plans to announce the first close of Fund II in the December quarter of FY27. This initiative comes as India's energy hardware sector gains traction among institutional investors, driven by the country's ambitious energy transition targets. In March, Union cabinet minister Ashwini Vaishnaw indicated that by 2035, 60% of India's installed electric capacity would come from non-fossil sources, aligning with the nation's climate commitments under its Nationally Determined Contributions (NDCs) submitted to the UN.
Transition VC aims to invest in companies that are developing storage solutions and other adjacent technologies. The firm has previously focused on battery infrastructure and is now expanding its investment scope to include energy networks, thermal energy storage, advanced materials, and geothermal energy. While acknowledging that some sectors have been dominated by other countries, such as China in electric battery cells, Transition VC believes there are still opportunities for growth in various energy-related fields.
The establishment of this fund could influence the renewable energy sector by increasing capital flow into energy startups, particularly those focusing on storage and advanced technologies. Investors will watch for the first close announcement of Fund II in December 2025, which may signal further institutional interest in India's energy transition efforts.