What happened
The Economic Times reports that Unacademy founders Gaurav Munjal and Roman Saini are raising a Rs 700 crore venture capital fund named Longshot Capital. The fund is specifically focused on investing in artificial intelligence and deep technology startups. According to people with knowledge of the matter, the fund has already secured commitments of approximately Rs 300 crore and is targeting its first close in January 2027. This move occurs less than two months after UpGrad acquired Unacademy.
The Economic Times reports that Gaurav Munjal and Roman Saini, the founders of Unacademy, are in the process of raising a venture capital fund named Longshot Capital. The fund has a target size of Rs 700 crore and is explicitly focused on investing in artificial intelligence and deep technology startups.
According to sources cited by the outlet, the fund has already secured commitments totaling approximately Rs 300 crore. The founders are targeting a first close in January 2027, after which they plan to begin active investing. However, the report notes that fundraising discussions are ongoing, and both the final size and the timing of the first close remain subject to change.
This fundraising effort is taking place in the context of recent corporate changes, specifically less than two months after UpGrad acquired Unacademy. The establishment of Longshot Capital marks a new venture for the founders, shifting their focus from operating an edtech platform to managing a dedicated investment vehicle for AI and deep tech.
Source details: m.economictimes.com
Why it matters
This development signals a significant shift in capital allocation within the Indian startup ecosystem, specifically toward AI and deep tech sectors. By establishing a dedicated fund, the founders are positioning themselves to drive investment in these high-growth areas post-acquisition. The Rs 700 crore target represents a substantial commitment to the AI industry, potentially influencing the valuation and growth trajectories of early-stage AI companies in the region. It also highlights the continued relevance of prominent edtech founders in the broader tech investment landscape.
The creation of Longshot Capital represents a concrete move by prominent industry figures to channel capital into the AI and deep tech sectors. With a target size of Rs 700 crore, the fund is positioned to make significant investments in startups within these fields.
The focus on AI and deep technology aligns with broader global trends in venture capital, where these sectors are attracting substantial funding due to their potential for high growth and transformative impact. The involvement of Unacademy's founders adds credibility and potential network advantages to the fund.
The timing of this fund's launch, shortly after the acquisition of Unacademy by UpGrad, suggests a strategic pivot by the founders. It indicates their intent to remain active in the tech ecosystem through investment rather than direct operational management of their previous company.
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What to watch next
Investors should monitor the final size and timing of the fund's first close, as the source notes these details could change. Additionally, the specific portfolio companies selected by Longshot Capital will indicate the founders' strategic focus within the AI and deep tech sectors. The impact of this fund on the competitive landscape for AI startup funding in India is also a key area to observe.
The final structure of the fund, including the total amount raised and the specific terms of the first close, will be critical indicators of investor confidence in the AI and deep tech sectors in India.
The selection of initial portfolio companies by Longshot Capital will provide insight into the specific sub-sectors of AI and deep tech that the founders consider most promising. This could influence trends in startup funding and development in these areas.
The operational dynamics of the fund, including its investment strategy and decision-making process, will be important for understanding its potential impact on the AI startup ecosystem. The source notes that details are still being finalized, so further updates are expected.