The Bharat Breakthrough Fund-I is a SEBI-registered Category I VC fund. The firm plans to back spacetech, defence tech, robotics, AI/ML, cybersecurity, biotech, sustainability, and consumer innovation startups via the fund.

The fund said that it would invest ₹100 Cr to ₹120 Cr in 25-30 startups with an average ticket size of ₹4 Cr in the first phase, followed by ₹50 Cr to ₹80 Cr investment in five to eight startups with an average ticket size of ₹10 Cr.

ValleyNXT claimed that its maiden fund is designed to operate under a "VC + Accelerator model", powered by its mentorship, investment and network. A ValleyNXT spokesperson told Inc42 that each startup will go through a nine-month accelerator programme, with each cohort hosting up to 10 startups.

The firm counts AV Capital founder Anvita Varshney, Aether Industries independent director Arun Kanodiya, Moglix founder Rahul Garg, and Droom founder Sandeep Aggarwal among the mentors for its accelerator programme.

Founded in 2021 by Madhu Vasepalli, Nikhil Agarwal, Anand Saklecha and Suresh Goyal, ValleyNXT has backed more than 10 startups so far, including Cloudworx Studio, The Theatre Project, Swaaha, and more. The firm started as a platform to connect startups with angel investors.

The announcement comes at a time when the deeptech sector is seeing strong investor interest. This comes on the back of the Centre's focus on promoting deeptech startups in the country. While the government last year announced a separate fund of funds for the deeptech sector, the DPIIT, earlier this month, relaxed the framework for deeptech entities to be recognised as a startup.

Consequently, nearly 21% of the 90-plus new funds announced in 2025 planned to invest in the deeptech space. Earlier this month, US-based VC firm Golden Sparrow Ventures, which primarily invests in the early-stage deeptech sector in India, marked the first close of its $20 Mn (₹180.8 Cr) Fund II.