Athira Sethu
Kochi, 8 July 2025
The Indian Institute of Technology Madras (IIT Madras) is launching a large new initiative to fund startups. The institute will introduce a Rs 200 crore Venture Capital (VC) fund named the IITM Alumni Fund. This fund will be used to support young firms that are just starting to expand. The hope is to fund them so they can get large and successful companies, perhaps even the next unicorns (firms valued at over $1 billion).
This will invest predominantly in startups that were founded at IIT Madras Incubation Cell, an incubator where new business concepts are conceived and nurtured. The emphasis will be placed on Series A and pre-Series A rounds. These are early times when startups require money to become larger and serve more customers.
IIT Madras has already assisted in the formation of more than 500 startups in the years. Collectively, these startups are valued at over Rs 50,000 crore (approximately $6 billion). These startups have also created more than 11,000 employment opportunities in India. With this new fund, IIT Madras now aims to assist even more of these startups in developing further and becoming even bigger successes.
The IITM Alumni Fund will be operated independently of the institute itself. It will be a legally autonomous entity, so it can think about investments only and expand the businesses it invests in. The individuals who graduated from IIT Madras (known as alumni) will have a large responsibility for running and financing this business. Most of them are successful entrepreneurs, investors, or business executives now, and they want to give back by investing in the next generation.
Over the last few years, the number of startups originating from IIT Madras has increased rapidly. For this reason, the institute is confident that numerous of these businesses have the potential to become unicorns in the times to come. By offering early funding and mentorship, IIT Madras aims to make these nascent businesses robust, international entities.
This fund is a significant step towards developing a robust startup ecosystem in India, particularly one linked to premier institutions such as IIT Madras. Backed by alumni and industry experts, the fund seeks to assist future business leaders of India.
