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The Union Budget 2026–27 allocated INR 1,000 crore for ISM 2.0, placing greater emphasis on equipment, materials, indigenous intellectual property and specialized talent.
The Bengaluru-based firm will use the funds to build an R&D hub, accelerate product development, obtain regulatory approvals, and strengthen its distribution network across India.
The fund plans to invest between INR 2 crore and INR 5 crore in each portfolio company and has set aside additional capital for follow-on investments in high-performing startups.
Kotak Alternate Asset Managers Limited, through Kotak Life Sciences Fund I, invested INR 40 crore, while Alkemi Growth Capital contributed INR 25 crore.
The round also saw participation from existing investors Square Peg, Stripe, Lightspeed, and Moore Capital, with PayPal Ventures joining as a new investor.
India's AI ecosystem has evolved beyond its early application-led phase, when companies relied heavily on globally available models and foreign infrastructure.
The initiative aims to bring together researchers, startups, enterprises, investors, and academic institutions to build sustainable, humanity-first AI solutions for global markets.
The UNXT program is a 200-hour, 30-day course designed to teach practical skills such as effective communication, workplace readiness, professional etiquette, core values, and essential life skills.