Former Defence Secretary Dr Ajay Kumar’s VC fund makes first close

MountTech Growth Fund, a venture capital fund focussed on defence, space, and national security, floated by former Defence Secretary Dr Ajay Kumar, along with three co-founders, has made its first close.

Since receiving SEBI approval in January 2024, MountTech Growth Fund or MGF-Kavachh has swiftly gathered commitments, surpassing its planned corpus size of Rs 250 crore, said the VC fund in a statement.

The fund has declared its first close at over 100% of its targeted corpus and will now be using its green-shoe option of another Rs 250 crores before its final closure. It will focus on IP and technology-driven businesses with an aim to transform India into a hub of strategic and technological excellence in the space, aerospace, and deeptech sectors.

"India stands at a pivotal moment, with an unparalleled opportunity to leverage its strengths amid evolving global dynamics. MGF-Kavachh aims to catalyse this growth by focusing on local innovation and the indigenisation of critical technologies in areas of national importance," said Dr Kumar, Founder and Chairman, MGF-Kavachh.

"MGF-Kavachh will nurture promising startups working at the intersection of innovation, space, aerospace, deep technology, and India’s 'Atmanirbhar' agenda while solving for its strategic needs across sectors like national security, defence and aerospace, digital Communications," he added.

“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,” said Raj Sethia, Founder and Managing Partner at Kavachh.

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“Self-reliance in strategic sectors is an existential need for the country and a lucrative opportunity for investors,” said Suryakant Dalmia, Co-founder at MGF-Kavachh.

"MGF-Kavachh, with its focus, credibility, and platform, will be the first port of call for founders, co-investors, institutions, and eco-system players,” said Abhinav Munshi, another co-Founder at Kavachh.