What is your investment thesis?

BYT means ‘building your tomorrow’. BYT Capital is a ₹180 crore early-stage alternative investment fund (AIF) dedicated to investing at the intersection of scientific depth, engineering precision and transformative technology. We are focused on founders building solutions that are scalable, defensible, research-led and globally relevant.

Do you favour early-stage or growth and late-stage funding? What is the average cheque size you deploy?

We usually come in early at pre-seed to seed stage and invest ₹3-4 crore as a first cheque. Then we do a follow-up of ₹16–18 crore, based on the start-up’s milestones. Of the ₹180 crore, we will make 18–20 investments over four years.

Which sectors excite you?

We focus on frontier technologies, defence, MRO (maintenance, repair, and operations), advanced materials, biotechnology, AI in healthcare, clean energy, semiconductors, quantum computing, robotics and industrial automation, and space technology. Broadly, we are tracking 10–12 sectors, analysing how these technologies are being adopted globally.

A significant share of the fund will be deployed in hardware, as India’s growth will require a strong manufacturing base. Building domestic IPs will be critical.

In hardware, India still lags behind countries like the US and China. However, the government has stepped up support for deep-tech over the past 6–7 years, encouraging domestic manufacturing and homegrown IP through initiatives such as the DLI, PLI, and RDI schemes.

What is the strength of your current portfolio?

We have already done three investments: VyomIC, a deep-tech space startup; Peptris, which is using AI for faster, cheaper and more reliable drug development; and Octobotics, an India-based industrial robotics company building AI-enabled non-destructive testing (NDT) platforms for high-risk inspection environments.

Will more investors focus on IP-led startups as the ‘Make in India’ initiative gains prominence?

As a pure deep-tech investor, we see IP as a critical factor when evaluating startups. We assess whether the company already has IP or the potential to develop one in 2-3 years. Otherwise, it raises questions over the company’s ability to differentiate itself and protect its innovations. Proprietary IP is a key criterion in our investment decisions.

Encouragingly, IP creation in India has been rising steadily. Patent filings have grown significantly — from around 3,500 in 2015 to nearly 88,000 in 2024.