TLDR: Early-stage venture capital firm Inflexor Ventures is set to achieve the first close of its $150 million (₹1,250 crore) Fund III by the end of Q2 FY26. The fund will strategically invest in 25-27 startups across high-tech sectors, including foundational large language models (LLMs), healthcare devices, EV battery technology, and broader artificial intelligence, with an average cheque size of $2.5-3 million for a 15% stake.
Inflexor Ventures, a prominent early-stage venture capital firm, is actively working towards the first close of its third fund, Fund III, aiming to secure $150 million (approximately ₹1,250 crore) by the conclusion of the second quarter of the fiscal year 2026. This new fund signifies a strategic pivot towards emerging and high-tech sectors, moving into less crowded, innovation-driven verticals.
The firm plans to deploy capital into 25 to 27 promising startups, primarily focusing on pre-Series A to Series A funding stages. The average cheque size for these investments is projected to be between $2.5 million and $3 million, typically securing around a 15% equity stake in the portfolio companies. This approach underscores Inflexor’s commitment to fostering innovation and building a robust portfolio of future-ready enterprises.
Key investment areas for Fund III include foundational large language models (LLMs), advanced healthcare devices, and cutting-edge electric vehicle (EV) battery technology. Partner Murali Krishna Gunturu highlighted that artificial intelligence (AI) and generative AI are core interest areas, alongside advanced materials. This focus aligns with the global shift towards deep technology and sustainable solutions.
Inflexor Ventures, co-founded by Venkat Vallabhaneni, Jatin Desai, and Pratip Mazumdar, currently manages over $120 million in assets. Its existing portfolio boasts more than 25 startups spanning deeptech, spacetech, cybersecurity, AI, and consumer technology. Notable investments include consumer durables maker Atomberg, spacetech startup Bellatrix Aerospace, CredFlow, and Bioprime Agrisolutions. With Fund III, the firm anticipates expanding its total portfolio to over 50 startups.
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In a related development, Inflexor recently announced the successful closure of its ₹350 crore Opportunities Fund. This fund facilitated the acquisition of the entire portfolio of its first fund, Parampara Capital, a move led by HDFC Asset Management Co. This initiative provided early liquidity to the initial investors, demonstrating Inflexor’s commitment to delivering value across its investment lifecycle. The firm is poised to significantly deepen its footprint in India’s dynamic early-stage startup ecosystem by providing strategic capital and expertise to companies at critical growth junctures.
