IIMA Ventures, Jaivel Aerospace launch acceleration fund to back defence, aerospace startups

IIMA Ventures, the technology-focused investment arm of IIM Ahmedabad, has partnered with Jaivel Aerospace to launch an aerospace and defence acceleration fund aimed at nurturing early-stage startups in the sector.

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The fund will back 8-10 startups developing technologies in areas such as autonomy, advanced materials, advanced manufacturing, and secure communication systems. Each selected startup will receive up to $400,000 (about Rs 3.3 crore) in pre-seed or seed funding, along with access to mentorship, testing and development facilities, and Jaivel’s global manufacturing network.

“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,” said Vipul Patel, Partner at IIMA Ventures. He added that the fund is focused on pre-seed and seed opportunities—essentially providing the first institutional cheque to new ventures.

IIMA Ventures has previously supported startups such as Sagar Defence, ePlane, Ideaforge, and Nabhdrishti in the aerospace and defence domains. Its broader portfolio also includes space-tech ventures like Agnikul, PierSight, Galaxeye, and Bellatrix.

Unlike most sectoral funds, this vehicle is not structured as an Alternative Investment Fund (AIF). It is being set up with balance-sheet capital from both Jaivel Aerospace and IIMA Ventures. The partners plan to expand the fund’s size over time and are in talks with other corporates to join the initiative.

Founded by Vipul Vachhani, Jaivel Aerospace provides design, engineering, and advanced manufacturing solutions for global aerospace clients. “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,” said Vachhani.

Earlier this year, IIMA Ventures had announced plans to invest in 30 deeptech startups from a Rs 40 crore corpus under its partnership with the Small Industries Development Bank of India (Sidbi).