Vertex Ventures Southeast Asia and India is refocusing its investment strategy to emphasize hardware and deeptech sectors, particularly in semiconductors, robotics, and battery technology. This strategic shift comes as companies increasingly seek independence from reliance on China, according to Ben Mathias, managing partner at the firm.
As the demand for 'sovereign technology' rises, Vertex Ventures joins a growing number of investors targeting the deeptech landscape in India. This trend reflects a broader global movement, with deeptech accounting for 36% of all venture funding last year. Hardware investments have also surged, nearly doubling from $150 billion to $280 billion since 2023.
In the Indian market, deeptech investments reached $967 million in just the first five months of 2026, significantly higher than the $1.47 billion raised throughout 2025.
Historically, Vertex Ventures has concentrated on fintech, consumer brands, and enterprise software, with notable investments in companies like FirstCry and XpressBees. Recently, the firm participated in BigEndian Semiconductors' $6 million pre-Series A funding round and led Spyne's $16 million Series A round last year.
Investment Strategy
Vertex Ventures typically invests between $2-10 million in Series A and B rounds, acquiring a 15-20% stake. Currently, the firm is deploying its fifth fund, which totals $540 million, with Temasek contributing 30% of the capital.
Mathias indicated that the firm anticipates completing its fund deployment within the next year, after which it will focus on follow-on investments. Plans for a sixth fund are expected to begin early next year, likely maintaining a similar size to the current fund.
Exits and Future Outlook
Vertex Ventures has already exited nearly one-third of the 32 companies from its fourth fund launched in 2020. Upcoming exits include Kuku FM, which is preparing for a $200 million public offering. The firm also plans to hold its investment in beauty brand Pilgrim, which is expected to be IPO-ready within 24 months.
In Southeast Asia, two companies are gearing up for IPOs, while the digital lending platform Abacus has achieved profitability for 12 consecutive quarters and aims for a public market debut within three years.
