Mumbai: SINE (IIT-B) Plans Venture Capital Fund To Scale Start-Up Support By 4X Over Next Decade

Mumbai: The Society for Innovation and Entrepreneurship (SINE), IIT Bombay's (IIT-B) technology business incubator, is likely to establish a dedicated venture capital fund to support emerging start-ups. The announcement of the likely set up of the venture capital comes as SINE prepares to mark its 20th anniversary with a celebratory event on 28 and 29 November.

The proposed fund aims to address funding gaps for early-stage start-ups in deep-tech and product-driven sectors such as biotechnology, space technology, defence, and clean energy. "This fund will bridge funding gaps for early-stage start-ups leveraging cutting-edge technology, with SINE’s expertise guiding the selection of ventures with high potential," said Shaji Varghese, CEO of SINE. The Institute, however, explained the difficulties faced in starting such an initiative. “It is a complex problem to implement a venture capital fund for an academic sector incubator. The returns for investors may not come in a very quick time,” explained Santosh J Gharpure, the professor-in-charge of SINE. But it’ll be streamlined sooner rather than later, he added.   

Drawing on IIT Bombay’s extensive alumni network and industry connections, the fund aims to support ventures with long gestation periods, ensuring a steady flow of resources for innovation, Gharpure informed.

Two decades after it was set up, SINE has now set its sights on ambitious growth, planning to scale up its operations fourfold over the next 10 years. It aims to increase the number of start-ups it supports to over 1,000 in the next decade, up from its tally of supporting a total of over 245 ventures. To accommodate this growth, SINE has also expanded its physical infrastructure from 18,000 sq. ft. to 70,000 sq. ft. and has bolstered its ecosystem by fostering collaborations with government, corporates, and international entities. It aims to further enhance collaborations to achieve its goal of 4X growth.

The venture capital fund may prove out to be a key component of this strategy. By providing direct financial support, it will help early-stage start-ups overcome one of their most significant challenges—access to capital. The fund will also supplement government grants and corporate partnerships, enabling SINE to support more ventures and focus on transformative sectors of national importance.

"SINE understands the unique challenges of early-stage tech companies and is well-positioned to evaluate and nurture ventures with high potential," Varghese said. "This fund, once set up, will empower entrepreneurs to bridge the gap between prototypes and market-ready products, accelerating the journey from ideation to impact,” he added.

Currently, the venture capital fund model is at the discussion stage, where its structure and the mechanism is being deliberated upon, said Gharpure.

Established in 2004, SINE has nurtured start-ups with a survival rate of 80%. Notable start-ups that SINE has helped incubate include Gupshup, an AI-powered messaging startup that is now a unicorn; IdeaForge, as start-up that has gone on to become one of India’s leading drone manufacturers; and Atomberg, which is now a pioneer in energy-efficient technology.

Beyond start-up success, SINE has contributed significantly to India’s innovation ecosystem by hosting a slew of central government projects. For NIDHI Prayas, SINE serves as a Project Management Unit, bridging the gap from idea to prototype for start-ups. During the COVID-19 crisis, SINE supported 51 companies under CAWACH scheme with ₹39.65 crore, focusing on diagnostics, ventilators, and sterilisation products. It has also helped with defence-sector start-ups among others.

Going forward, a key goal for SINE is fostering entrepreneurship within IIT-B’s academic environment. "Our focus is to transform students and researchers into job creators rather than job seekers," said Professor Milind Atrey, Deputy Director (Academics, Research, and Translation), IIT-B. “The base of everything has to be cutting-edge research. But we have to develop an entrepreneurial mindset as well. That’s why we offer courses to interested students through our Desai Sethi School of Entrepreneurship,” Atrey added.

"By combining research, innovation, and entrepreneurship, we aim to position India as a global leader in technological advancement," Atrey said.