MGF-Kavachh, India’s First VC Fund for Defence and Critical Technologies , surpasses ₹250crores

MGF-Kavachh, India’s pioneering venture capital fund focused on supporting startups indigenizing critical technologies, has announced its first close, surpassing its targeted corpus of ₹250 crores. Founded by former Defence Secretary Dr. Ajay Kumar and three co-founders, the fund has swiftly garnered strong investor confidence and interest since receiving SEBI approval in January 2024.

MGF-Kavachh

Ajay Kumar, instrumental in steering India’s technology and defence policy reforms, now spearheads MGF-Kavachh as Founder and Chairman. “India stands at a pivotal moment, with an unparalleled opportunity to leverage its strengths amid evolving global dynamics. MGF-Kavachh aims to catalyze this growth by focusing on local innovation and the indigenization of critical technologies,” stated Dr. Kumar.

Leadership

The fund is backed by a team that includes Air Chief Marshal RKS Bhadauria (Rtd.), Vice Admiral SN Ghormade (Rtd.), and Lt. General Dr. Anil Kapoor, among others. The Advisory Council boasts eminent experts such as Smita Purshottam, Gani Subramaniam, and Dr. Manan Suri, who share MGF-Kavachh’s vision of a “Stronger India, Safer World.”

The fund’s strategy is built on four pillars: rigorous gatekeeping, robust portfolio construction, a unique acceleration platform for its investees, and a razor-sharp execution focus. Raj Sethia, co-founder and Managing Partner emphasized, “Self-reliance in strategic sectors is an existential need for the country and a lucrative opportunity for investors.”

“MGF-Kavachh, with its focus, credibility, and platform, will be the first port-of-call for founders, co-investors, institutions, and ecosystem players,” shared Abhinav Munshi, Co-Founder at MGF-Kavachh. The fund promises to play a pivotal role in India’s technological landscape and national security framework.

Investor Confidence

The first close at over 100% of the targeted corpus reflects the strong confidence of investors and institutions. MGF-Kavachh will now utilize its green-shoe option of an additional ₹250 crores before final closure.

MGF-Kavachh aims to transform India into a strategic and technological excellence hub by nurturing startups in space, aerospace, and deep-tech sectors. The fund’s focus on IP and technology-driven businesses is expected to contribute significantly to India’s ‘Atmanirbhar’ agenda.