Oil and Natural Gas Corporation (ONGC) is set to launch a new ₹200 crore startup fund to back ventures in energy and artificial intelligence, building on its earlier initiative that has deployed nearly ₹88 crore since 2016. The move aligns with India’s push for cleaner, technology-driven energy solutions and ONGC’s strategy to deepen its innovation footprint.
Focus areas and sectoral priorities
The proposed fund will target startups developing clean energy, deep-tech, renewables, robotics, hydrogen solutions, smart grids, energy storage, and AI/ML applications. With India accelerating its energy transition and digital adoption, ONGC aims to catalyse commercially viable technologies that can modernise operations across the energy value chain.
ONGC’s first startup vehicle was launched under the Government of India’s Startup India mission to foster innovation in oil, gas and allied energy segments. It currently operates as a SEBI-registered Category-I Alternative Investment Fund with a corpus of about ₹101 crore, positioning it among the more prominent public sector–anchored venture initiatives.
Strengthening investment capabilities
To scale its startup programme, ONGC is hiring two senior venture capital advisors for 12-month terms, extendable as required. The advisors will evaluate deal flow, run diligence, structure transactions, and guide portfolio management and exits—key functions as ONGC expands into emerging technologies.
Applicants are required to be under 63 years of age with over 20 years of professional experience, including a minimum of five years in venture capital fund management. The last date to apply has been indicated as 15 May 2026.
Ecosystem impact and policy context
Industry analysts say the new corpus could address an early-stage funding gap in energy innovation, where high R&D intensity often delays commercialisation. Backing from a large public sector enterprise like ONGC can help de-risk pilots, accelerate scale-up, and enable industry adoption—particularly in grid modernisation, storage, hydrogen, and emissions management.
ONGC has actively showcased its innovation framework at leading startup platforms, including Startup Mahakumbh 2025, underscoring its role in supporting entrepreneurship and advanced technologies within the energy sector.
Performance of the existing programme
Since its 2016 launch, the ONGC Startup Fund has reported approximately 450% valuation growth over five years. The programme largely targets early-stage ventures and can invest up to ₹5 crore per startup through milestone-linked tranches.
Selection involves application screening, detailed technical and commercial evaluations, and pitches before a steering committee. Assessment criteria include team strength, novelty, business model, market traction, and scalability. Beyond capital, ONGC offers incubation, mentorship, market access, and technical support.
The fund partners with institutions such as SINE-IIT Bombay and IIM Lucknow for professional incubation. It is open to Indian founders, startup teams, NRIs willing to operate in India, and incubatees from government-recognised academic institutions. Startups solely based on bought-out technologies are not eligible.
Notable portfolio companies
Several investees have gained visibility in cleantech and industrial innovation. Bengaluru-based String Bio has developed technology to convert methane into protein for poultry and aquaculture feed; ONGC invested ₹4.5 crore in its 2019 seed round. Delhi-based Chakr Innovation, known for converting diesel particulate emissions into usable ink, and Chennai’s Planys Technologies, which builds underwater robotic inspection systems, are also among ONGC-backed startups.
What lies ahead
Alongside external investments, ONGC runs innovation challenges and internal entrepreneurship programmes to tackle operational and environmental challenges in energy. The upcoming ₹200 crore fund is expected to deepen support for India’s cleantech and AI-led ventures, advancing the country’s goals on sustainability, efficiency, and energy security.
