India’s state-run energy company ONGC is preparing to launch a new ₹200 crore startup fund to support businesses working in the energy and artificial intelligence sectors. The company is planning this expansion after successfully using nearly ₹88 crore from its earlier startup fund, which was launched in 2016 during ONGC’s 60th anniversary year. The new move highlights ONGC’s growing focus on innovation and future technologies in India’s energy sector.
The upcoming fund is expected to support startups working in clean energy, deep-tech, renewable energy, robotics, hydrogen solutions, smart grids, energy storage, and AI/ML technologies. With India rapidly moving towards sustainable energy and digital transformation, ONGC wants to encourage startups that can bring modern solutions to the industry.
The original ONGC Startup Fund was launched under the Government of India’s Startup India initiative to encourage innovation in oil, gas, and energy-related businesses. The fund currently operates as a SEBI-registered Category-I Alternative Investment Fund with a corpus of around ₹101 crore. Over the years, it has become one of the important public sector-backed startup funding initiatives in the country.
ONGC Expanding Its Focus on Innovation
As part of the expansion, ONGC is also hiring two senior venture capital advisors to strengthen its startup investment operations. These advisors will help the company evaluate startup ideas, conduct due diligence, negotiate investment terms, and guide exit strategies. The positions are temporary for 12 months and can be extended further if required.
According to reports, candidates applying for these advisory roles must be below 63 years of age and should have more than 20 years of professional experience. They must also have at least five years of experience in venture capital fund management. The last date to apply for the positions is reportedly 15 May 2026.
Industry experts believe the new startup fund could play an important role in supporting India’s growing clean-tech and AI startup ecosystem. Startups working in energy innovation often face funding challenges in the early stages because of high research and development costs. Support from large public sector companies like ONGC can help these businesses grow faster and commercialise their technologies.
The company has also been actively participating in startup events and innovation programmes. During Startup Mahakumbh 2025, ONGC showcased its startup framework and highlighted its efforts to support entrepreneurship and advanced technologies in the energy sector.
Startup Fund Has Seen Strong Growth
Since its launch in 2016, the ONGC Startup Fund has reportedly achieved around 450% growth in valuation over five years. The company mainly supports early-stage startups and can invest up to ₹5 crore in individual ventures through milestone-based funding.
The startup selection process includes application screening, detailed evaluations, and pitching sessions before a steering committee. Startups are judged based on the quality of their team, innovation, business plan, market traction, and future growth potential. ONGC also provides incubation support, mentoring, market connections, and technical guidance to selected startups.
The company has partnered with well-known institutions such as IIT Bombay’s SINE and IIM Lucknow to provide professional incubation support. The fund is open to Indian entrepreneurs, startup teams, NRIs willing to work in India, and incubatees from government-approved academic institutions. However, startups based only on bought-out technologies are not considered eligible.
Several ONGC-Backed Startups Have Gained Attention
Many startups supported by ONGC have already built strong reputations in India’s clean-tech and energy sectors. One of the notable names is Bengaluru-based String Bio, which developed technology that converts methane gas into protein for poultry and aqua feed. ONGC invested ₹4.5 crore in the startup during its seed funding round in 2019.
Another well-known startup is Chakr Innovation, which works on reducing diesel pollution by converting harmful exhaust emissions into usable ink. Chennai-based Planys Technologies, which develops underwater robotic inspection systems, is also among the startups backed by ONGC.
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Apart from external startup investments, ONGC also runs innovation challenges and internal entrepreneurship programmes to encourage problem-solving and technology development in the energy industry. Experts believe the upcoming ₹200 crore startup fund could further strengthen India’s startup ecosystem while helping the country move towards cleaner, smarter, and technology-driven energy solutions in the coming years.