Unacademy founders raising Rs 700 crore Longshot fund for AI, deeptech
By Arjun MehtaSenior Business Editor, Peepals Business
Representative image: derschoeneali / Pixabay
Gaurav Munjal and Roman Saini are raising Rs 700 crore Longshot Capital to back 25-28 AI and deeptech start-ups, reports said on October 26, 2026.
What Happened
Unacademy co-founders Gaurav Munjal and Roman Saini are raising a Rs 700 crore venture fund called Longshot Capital to back early-stage start-ups in artificial intelligence (AI) and deeptech, according to reports published on October 26, 2026, that cite people familiar with the plan. The fund has commitments of about Rs 250 crore to Rs 300 crore and is aiming for its first close in January 2027. Munjal and Saini declined to comment on the reports.
Key Facts
- Fund: Longshot Capital, set up as a Category II Alternative Investment Fund (AIF), with a target size of Rs 700 crore.
- Commitments so far: about Rs 250 crore to Rs 300 crore, according to the reports; the founders have not confirmed the figure.
- First close: targeted for January 2027.
- Portfolio plan: 25 to 28 start-ups at the seed and pre-Series A stages.
- First cheques: $500,000 to $1.5 million per company, aiming for ownership of 8% to 12%.
- Sectors: AI, manufacturing, space, defence and robotics.
- Roles: Saini is expected to run the fund full-time, while Munjal is expected to take part alongside his work at Unacademy; both are expected to be general partners.
- Track record: the two have together made more than 200 personal start-up investments worth over Rs 25 crore, the reports say.
Why It Matters
Longshot would turn two of India's best-known edtech founders into professional venture investors at a time when the money for very young deeptech companies is still thin. Seed and pre-Series A rounds are the first institutional cheques a start-up raises, usually before it has steady revenue. Deeptech firms in space, defence, robotics and advanced manufacturing often need years of research and expensive hardware before they can sell anything, which makes these early rounds hard to fill. A fund that commits in advance to 25 to 28 such companies adds a new source of capital for founders in these fields.
The planned ticket size also tells founders where the fund will sit. A first cheque of $500,000 to $1.5 million, which is roughly Rs 4.7 crore to Rs 14.2 crore at the October 2026 exchange rate of about Rs 94.9 to the dollar, is larger than a typical angel round but smaller than most Series A rounds. In return, the fund wants a stake of 8% to 12%, which gives it a meaningful say in each company it backs.
A Category II AIF is the class of fund registered with the market regulator SEBI that most Indian venture capital and private equity funds use. It pools money from investors and puts it into unlisted companies.
The timing is notable. The fund is being raised weeks after upGrad completed its acquisition of Unacademy on September 1, 2026, in an all-share deal valued at about $200 million, far below the company's 2021 peak valuation. Munjal has stayed on to lead Unacademy inside upGrad. The plan shows a pattern seen in mature start-up markets: founders who have been through a full cycle of growth and correction move on to fund the next generation.
| Detail | Reported plan |
|---|---|
| Target size | Rs 700 crore |
| Commitments so far | About Rs 250-300 crore |
| First close | January 2027 |
| Number of start-ups | 25 to 28 |
| First cheque | $0.5 million to $1.5 million |
Impact
Short-term: Founders building AI, robotics, space, defence and manufacturing products at the seed stage gain one more potential lead investor, though the fund still has to reach its first close before it can deploy most of its money.
Long-term: If Longshot closes at its target, it would add a dedicated pool of early-stage deeptech capital and could help more Indian hardware and AI companies reach the Series A stage, where larger funds come in.
Who is affected: Deeptech and AI founders looking for seed money, the investors being approached for commitments, other early-stage funds that will compete for the same deals, and Unacademy, whose co-founder will split his time.
Key Takeaway
Unacademy's co-founders plan a Rs 700 crore fund, Longshot Capital, to write $0.5 million to $1.5 million first cheques into 25 to 28 AI and deeptech start-ups, with a first close targeted for January 2027.
Questions and Answers
What is Longshot Capital?
Longshot Capital is a planned Rs 700 crore venture fund being raised by Unacademy co-founders Gaurav Munjal and Roman Saini to invest in seed and pre-Series A start-ups in AI, manufacturing, space, defence and robotics, according to reports on October 26, 2026.
How much will the Unacademy founders' fund invest in each start-up?
The reports say it plans first investments of $500,000 to $1.5 million per company, for ownership of 8% to 12%, across 25 to 28 start-ups.
Is the fund officially launched?
Not yet. The details come from reports citing people familiar with the plan, the founders declined to comment, and the first close is targeted for January 2027.
Is this investment advice?
No. This story reports on a fund that is being raised. It is not a recommendation to invest in the fund or in any start-up, and early-stage investing carries a high risk of loss.
Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.
By Arjun Mehta, Senior Business EditorCovers Start-ups & Opportunities and more for Peepals Business. All stories by Arjun Mehta
Arjun Mehta is a pen name of the Peepals Global Editorial Team, which researches, fact-checks and publishes every story. The portrait is an illustration.
