Unacademy co-founders Gaurav Munjal and Roman Saini are reportedly raising ₹700 crore for a new venture capital fund focused on artificial intelligence (AI) and deep technology startups, marking an expansion of their investment activities following upGrad's acquisition of the education technology company.
The proposed fund, named Longshot Capital, has secured commitments of approximately ₹300 crore and is targeting its first close in January 2027, according to The Economic Times, citing people familiar with the development.
Fundraising discussions remain underway, and the final size and timeline could change.
Longshot Capital plans to invest in 25 to 28 startups at the seed and pre-Series A stages, with initial investments ranging from $500,000 to $1.5 million per company.
The fund will focus on AI-led businesses and deeptech sectors, including manufacturing, space technology, defence and robotics. It is expected to target ownership stakes of approximately 8% to 12% in its portfolio companies.
Under the proposed arrangement, Saini will manage the fund full-time, while Munjal will remain involved on a part-time basis alongside his responsibilities at Unacademy. Both founders are expected to serve as general partners.
The Bengaluru-based fund is structured as a Category II Alternative Investment Fund and plans to deploy capital over approximately three years.
Its investment mandate will cover startups operating in India as well as companies founded by entrepreneurs of Indian origin overseas.
The fund is expected to have a lifespan of 10 to 11 years, reflecting the longer development and commercialisation cycles associated with deeptech businesses.
Prospective investors reportedly include startup founders, family offices and overseas institutions.
Munjal and Saini have previously participated in more than 200 angel investments, collectively deploying over ₹25 crore across startups.
Their investment portfolio includes companies such as Pine Labs, Dhan, Seekho, Ultrahuman, Snabbit and Third Wave Coffee.
The proposed fund follows upGrad's acquisition of Unacademy in September 2026 through an all-stock transaction that valued the company at approximately ₹1,955 crore.
Munjal continues to lead Unacademy following the acquisition.
The development also comes amid increasing venture capital activity in India's AI and deeptech sectors.
According to industry figures cited by Inc42, Indian AI startups raised $438 million across 28 deals during the third quarter of 2026, representing a 265% year-on-year increase.
Deeptech startups raised approximately $290 million across 28 deals during the same period, an increase of 176% from the previous year.
The proposed fund would add to a growing number of investment vehicles established by Indian startup founders, including Titan Capital and Together Fund.
Munjal and Saini have not publicly confirmed the fundraising details, and Longshot Capital's investment activity is expected to begin following its planned first close.
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