Transition VC has launched Fund II with a target corpus of ₹1,500 crore to back around 20 engineering-led startups over four years, with initial deployments planned for the third quarter of FY27 and check sizes of $2–$5 million. The Bengaluru-based firm is doubling the size of its maiden vehicle and expanding beyond cleantech into adjacent areas such as energy networks, thermal energy storage, advanced manufacturing, and application engineering, while selectively exploring semiconductors, nuclear energy, geothermal tech, and next-generation energy infrastructure. Its first fund, closed at ₹723 crore, delivered a 57% IRR and over 3x MOIC, with zero write-offs and several portfolio companies achieving profitability or follow-on rounds; the firm emphasizes building a complementary portfolio to generate shared synergies across the energy and industrial value chain. Fund II will continue investing in the energy transition, leveraging India’s push toward non-fossil capacity and a strategic view that domestic engineering talent can win in global markets. Investment for Fund I focused on cleantech domains such as electric mobility, energy storage, and climate tech, and Fund II aims to replicate that success with broader technology bets and a stronger support team for portfolio startups. The firm has already drawn commitments from existing LPs and attracted global institutions and family offices, signaling growing investor appetite for industrial deeptech and energy-transition opportunities in India.