360 ONE Asset Launches ₹1,000 Crore Defence & Space Fund: A New Frontier for Indian Startups
360 ONE Asset launches a ₹1,000 crore Multi-Stage Defence & Space Fund. Discover investment criteria, strategy, and how startups in the defence and space value chain can secure funding.
The Indian private capital landscape reached a significant milestone on January 20, 2026, as 360 ONE Asset—the private equity and venture capital arm of the wealth management giant—unveiled its ₹1,000 crore Multi-Stage Defence & Space Strategy.
Backed entirely by domestic limited partners (LPs), this fund represents one of the largest pools of private capital dedicated to India’s strategic sectors. With a final close expected within the next two months, the fund is set to ignite a new wave of innovation across the domestic aerospace and defence supply chain.
- Also Read: IN-SPACe and SIDBI Launch ₹1,000 Crore Space Venture Capital Fund to Boost India’s Space Startups
The Fund Overview: Fueling Sovereignty through Capital
Speaking at a media interaction in Mumbai, Sameer Nath, Chief Investment Officer and Head of PE & VC at 360 ONE Asset, highlighted that the fund is designed to address the “episodic and cautious” nature of historical funding in these sectors.
Key Fund Specifications:
- Total Corpus: ₹1,000 crore (with an active greenshoe option to expand the size further).
- Target Portfolio: 15–20 high-growth companies.
- Investor Base: 100% domestic capital, signaling strong confidence from Indian HNIs, family offices, and institutional investors in the “Atmanirbhar Bharat” (Self-Reliant India) vision.
- Timeline: Final closure is slated for March 2026.
Investment Strategy: From Seed to IPO
Unlike traditional niche funds that focus only on early-stage startups, 360 ONE Asset is adopting a multi-stage approach. This strategy allows the firm to support companies at various inflection points of their lifecycle.
The capital allocation is systematically divided into three tiers:
- Venture Capital (Series A): 20% of the corpus is reserved for early-stage disruptive technologies.
- Growth Equity (Series B to D): 30% is dedicated to companies scaling their operations and platforms.
- Late-Stage & Pre-IPO: 50% of the fund will back mature players looking to institutionalize or head toward public listings.
“Defence is likely to be more acquisitive,” noted Abhishek Nag, Partner at 360 ONE Asset. He emphasized that the sector’s trajectory will likely involve significant M&A activity alongside traditional IPO exits.
Also Read: Ronnie Screwvala Puts $50M on the Table for Frontier-Tech Startups like AI (artificial intelligence), deep technology, and space technology
Information for Startups: What is the Fund Looking For?
For startups in the spacetech and defence sectors, this fund offers more than just capital, it offers a pathway to the “sovereign IP” ecosystem.
1. Sector Focus & Value Chain
The fund is scouting for companies across the entire Defence and Space value chain, specifically targeting:
- Defence Electronics & Electronic Warfare: Modernizing the “brains” of military hardware.
- Satellite-based ISR (Intelligence, Surveillance, and Reconnaissance): Space-based data and imaging.
- Space Analytics: Interpreting complex data for civilian and military use.
- Aerospace Components: High-precision manufacturing and indigenization.
2. Current Portfolio Benchmarks
The fund has already deployed capital into four major players, which serve as a blueprint for the type of companies they seek:
- Digantara: Space surveillance and intelligence.
- Sisir Radar: Advanced spacetech and imaging.
- CoreEL Technologies: Defence electronics and system design.
3. Key Investment Criteria
Startups seeking to pitch to 360 ONE Asset should demonstrate:
- Policy Alignment: Solutions that fit into the rising defence capital outlays and indigenization mandates.
- Dual-Use Potential: Technologies that serve both civilian (commercial) and military markets.
- IP Ownership: A clear focus on creating and owning “Sovereign IP” within India.
- Scalability: The ability to transition from R&D and prototypes to large-scale procurement and exports.
Why Now? The Macro Tailwinds
The launch comes at a time of unprecedented policy visibility. Higher Foreign Direct Investment (FDI) limits and a stronger push for Make in India have made defence and space “investable” sectors.
By leveraging an advisory network that includes former heads of India’s defence R&D, national space agencies, and veteran military leaders, 360 ONE Asset is positioning itself as the bridge between private innovation and national strategic goals.
Conclusion
The ₹1,000 crore fund from 360 ONE Asset is a clarion call to Indian entrepreneurs. It signals that the capital required to build “deep-tech” for national security is no longer just a government responsibility, private capital is ready to lead the charge.
Are you a founder building the next breakthrough in aerospace or defence? Now is the time to align your growth strategy with institutional partners who understand the long-term gestation and high-impact nature of these sectors.
Team: IntellexConsulting.com
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