IIMA Ventures, the investment arm of IIM Ahmedabad, has partnered with Jaivel Aerospace to roll out a new acceleration fund for aerospace and defence startups. The fund is designed to give early-stage companies in India a strong push through both financial support and industry access.
The partners will support 8–10 startups working on breakthrough technologies such as autonomy, secure communication systems, advanced manufacturing, and new-age materials. Each selected startup can receive up to $400,000 (Rs 3.3 crore) in pre-seed or seed funding, along with guidance from mentors, testing facilities, and entry into Jaivel’s global manufacturing network.
Focus on Early-Stage Capital
Explaining the fund’s focus, Vipul Patel, Partner at IIMA Ventures, said that the aim is to back pre-seed and seed-stage companies with their first institutional cheque. “Within the deeptech space, aerospace and defence are areas we’ve already worked in. With this new fund, we want to expand and double down on that portfolio,” he noted.
The initiative marks a strong step in addressing the funding gap faced by early-stage defence and aerospace startups in India, giving them not just money but also industry-ready infrastructure.
Track Record in Deeptech
IIMA Ventures already has a history of supporting startups in the sector. Its portfolio includes names such as Sagar Defence, Ideaforge, ePlane, and Nabhdrishti. Beyond aerospace and defence, the fund has also invested in space-tech ventures like Agnikul, Galaxeye, PierSight, and Bellatrix, which are building cutting-edge technologies for the global market.
This acceleration fund builds on that foundation, giving IIMA Ventures a sharper focus on companies innovating in defence and aerospace technologies.
Not an AIF Structure
Unlike most sector-focused funds, this vehicle is not structured as an Alternative Investment Fund (AIF). Instead, it is being financed directly with balance-sheet capital from Jaivel Aerospace and IIMA Ventures. Both partners have also confirmed that they are in discussions with other corporates to scale up the fund size over time.
This flexible structure ensures that the fund can move quickly in making investments, while also expanding as more industry partners come on board.
Jaivel Role in the Fund
Jaivel Aerospace, founded by Vipul Vachhani, brings in its global expertise in design, engineering, and advanced manufacturing for aerospace clients. Vachhani said, “Together with IIMA Ventures, we aim to create a platform for startups to leverage Jaivel’s international advanced-manufacturing network and build robust execution models from the start.”
With access to Jaivel’s international operations, Indian startups will be able to test, validate, and scale technologies with a global perspective right from the beginning.
Startup Support
Earlier this year, IIMA Ventures announced a plan to invest in 30 deeptech startups through a Rs 40 crore corpus in partnership with the Small Industries Development Bank of India (SIDBI). This new defence and aerospace fund further expands that ambition by focusing on India’s critical strategic sectors.
By combining IIMA Ventures’ investment experience with Jaivel Aerospace’s global networks, the initiative aims to position India as a hub for aerospace and defence innovation, while giving startups the support they need to scale faster and stronger.
