October 14, 2025

Hold tight, India’s aerospace scene is getting hotter! IIMA Ventures, the tech investment arm of IIM Ahmedabad, has joined forces with Jaivel Aerospace to launch an exciting aerospace and defence acceleration fund. This fund is set to support 8-10 early-stage startups bringing fresh ideas in autonomy, advanced materials, smart manufacturing, and secure communication systems. Each startup will get a cool $400,000 in pre-seed or seed money. But that’s not all! They will also get expert mentorship, access to development facilities, and the mighty global manufacturing network of Jaivel Aerospace. Vipul Patel, partner at IIMA Ventures, told ET, “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.” He added, “We’re focusing more on pre-seed and seed opportunities—essentially the first institutional cheque. That’s the approach we’re taking as we look to add new companies in this space.” IIMA Ventures is no stranger to the aerospace and defence world. They have previously backed companies like Sagar Defence, ePlane, Ideaforge, and Nabhdrishti, as well as space-tech stars like Agnikul, PierSight, Galaxeye, and Bellatrix. Unlike usual, this fund is not set up as an Alternative Investment Fund (AIF). Instead, it runs on balance sheet capital from both Jaivel Aerospace and IIMA Ventures, with plans to grow bigger. They are also chatting with other corporates to join in and boost the fund's size and the number of startups they support. Jaivel Aerospace, founded by Vipul Vachhani, is a cutting-edge manufacturing technology firm. They create design, engineering, and advanced manufacturing solutions for aerospace clients worldwide. Vachhani enthusiastically said, “Together with IIMA Ventures, we aim to create the platform for startups to leverage Jaivel Aerospace’s international advanced manufacturing network as well as build a robust execution model from the start.” He added, “Startups will also benefit from Jaivel Aerospace’s design, engineering and manufacturing ecosystem to accelerate time-to-market.” This launch adds to IIMA Ventures’ busy year. Earlier, they unveiled plans to invest in 30 deeptech startups from a Rs 40 crore fund partnered with Sidbi. Why now? Investors are going gaga over Indian aerospace and defence startups because of government pushes for self-reliance, booming exports, and rising geopolitical spice in the region. In fact, new funds like Indusbridge Ventures by former Citi executive Ravi Kapoor with Rs 1,000 crore also show how this sector is ready to take off big time. The sky is the limit for India’s aerospace innovation journey!

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Tags: Iima ventures, Jaivel aerospace, Aerospace startups, Defence fund, Early-stage investment, Deeptech,