Expanding Support for Energy Innovation
Oil and Natural Gas Corporation (ONGC) is significantly scaling its venture capital efforts, with plans to launch a new Rs 200 crore startup fund. This initiative aims to bolster the development of startups specializing in the energy sector and Artificial Intelligence/Machine Learning (AI/ML) technologies.
Strategic Fund Management
To support this expansion, ONGC is actively recruiting two experienced advisors on a contractual basis. These roles will be critical in shaping the fund’s future, with responsibilities including:
- Evaluating startup deal flow and conducting due diligence.
- Negotiating complex startup valuations.
- Monitoring the performance of portfolio companies.
- Advising on strategic exit opportunities.
History and Traction
ONGC has a long-standing commitment to the startup ecosystem, having launched its initial Rs 100 crore fund in 2016 under the government’s Startup India initiative. That fund was later registered with SEBI as a Category-I Alternative Investment Fund (AIF). As of the latest reporting, the legacy fund has deployed nearly Rs 88 crore of its Rs 101 crore corpus into promising startups.
The PSU Startup Shift
The move is part of a broader trend among Indian Public Sector Undertakings (PSUs) to engage deeply with the startup economy. Similar to programs from organizations like IN-SPACe, SAIL, and BPCL, ONGC is leveraging its position as an industry titan to foster innovation in energy, manufacturing, and industrial tech.
Founder Takeaway
For founders in the energy and deep-tech spaces, this represents an opportunity not just for capital infusion, but for strategic partnership with a massive national utility player. Prospective founders should emphasize how their solutions integrate with industrial scale and energy transition goals.