Gaurav Munjal and Roman Saini, two of the co-founders of edtech company Unacademy, are moving to the other side of the table, raising a ₹700 crore venture capital fund to back early-stage artificial intelligence and deeptech startups.
The fund, named Longshot Capital, is being set up as a Category II Alternative Investment Fund, according to reports on 26 October citing The Economic Times. The founders have secured commitments of about ₹250–300 crore so far and are targeting a first close in January 2027.
Longshot Capital plans to make 25 to 28 investments at the seed and pre-Series A stages, focusing on startups building in AI and deeptech.
From Founders to Funders
The move follows the sale of Unacademy to upGrad in an all-stock transaction that valued the edtech company at about ₹1,955 crore, more than 90 per cent below the valuation it reached at its 2021 peak, when it was among India's most valuable startups.
Munjal and Saini have been active angel investors for several years, having invested more than ₹25 crore in startups between them. Longshot Capital formalises and expands that activity into an institutional fund.
Their journey mirrors that of other Indian founders who have become investors after building companies. Former founders bring practical experience of building products, hiring teams, raising capital and navigating crises, which can make them valuable partners for first-time entrepreneurs.
The Unacademy Story
Unacademy began as a YouTube channel created by Munjal in 2010 to share educational videos. It was formally established as a company in 2015 by Munjal, Saini, Hemesh Singh and Sachin Gupta, and grew into one of India's largest online learning platforms, offering courses for competitive exam preparation, including engineering, medical and civil services entrance tests.
During the pandemic, when schools and coaching centres closed, demand for online learning surged. Unacademy raised large funding rounds from investors including SoftBank, General Atlantic and Temasek, and its valuation climbed to about $3.4 billion in 2021.
As in-person education resumed, the company faced a sharp slowdown. It cut thousands of jobs over several rounds of layoffs, closed or scaled back business lines, and sought to reduce cash burn. Its eventual sale to upGrad, at a fraction of its peak valuation, became one of the defining stories of India's edtech correction.
Why AI and Deeptech
Longshot Capital's focus on AI and deeptech reflects where many investors see the next generation of value creation. Advances in generative AI have opened new opportunities for startups to build products in areas ranging from software development and customer service to healthcare, education and scientific research.
Deeptech, which includes fields such as semiconductors, robotics, space technology, advanced materials and biotechnology, has also attracted growing interest from Indian investors, supported by government programmes and a deepening pool of engineering talent.
Early-stage AI startups often need relatively modest capital to build initial products, making seed funds well suited to the sector. But the competition for promising founders is intense, with global and Indian venture firms, accelerators and corporate investors all seeking exposure to AI.
A Crowded Field of Seed Funds
India's seed-stage investment landscape has become increasingly crowded. Established firms such as Blume Ventures, Accel, Peak XV's Surge programme and Elevation Capital compete with micro VC funds, angel networks and a growing number of funds launched by former founders and operators.
Founder-led funds can differentiate themselves through networks, sector expertise and the ability to offer hands-on support. Munjal's large following on social media and the founders' experience scaling a consumer technology business could help Longshot attract deal flow.
Lessons From the Edtech Correction
The founders' experience at Unacademy may shape how they invest. The edtech boom and bust offered hard lessons about growth at any cost, the risks of over-reliance on venture capital and the importance of sustainable business models.
Investors who lived through that cycle may place greater emphasis on capital efficiency, clear paths to revenue and resilient business models when evaluating startups. At the same time, they understand that early-stage investing requires accepting risk and backing ambitious ideas, as the name Longshot suggests.
The Rise of Category II AIFs
Category II Alternative Investment Funds, regulated by the Securities and Exchange Board of India, are the most common vehicle for venture capital and private equity funds in the country. They pool capital from investors such as high-net-worth individuals, family offices and institutions, and invest in unlisted companies.
The number of such funds has grown substantially in recent years, reflecting rising interest in private markets among wealthy Indian investors and a maturing domestic venture capital industry that is less reliant on foreign capital.
Recycling of Talent and Capital
One sign of a maturing startup ecosystem is the recycling of talent and capital, as founders and early employees of successful or high-profile companies go on to start new ventures or invest in others. In Silicon Valley, generations of founders have become angel investors and venture capitalists, creating networks that support new startups.
India's ecosystem is beginning to show similar patterns. Founders from companies such as Flipkart, Ola, Zomato and Paytm have become active investors, and their experience and capital have helped fund a new wave of startups.
What Founders Bring to the Table
Investors who have built companies themselves often describe their value in practical terms: helping founders hire their first senior executives, negotiate term sheets, manage boards and navigate crises. Munjal and Saini experienced each of these at scale at Unacademy, from raising money at multibillion-dollar valuations to restructuring the business through layoffs and an eventual sale. That breadth of experience could be particularly valuable for first-time founders at the seed stage.
Munjal's public profile is another asset. He has a large following on social media, where he frequently comments on startups, leadership and technology, which could help Longshot attract founders and co-investors. Saini, a former doctor and civil servant who became a prominent educator on the Unacademy platform, brings a different perspective shaped by public service and teaching. The combination of operating experience, visibility and networks will be central to how Longshot positions itself against established seed investors.
What Comes Next
Longshot Capital will need to complete its fundraising, with the first close planned for January 2027, and begin deploying capital into its targeted portfolio of 25 to 28 startups. Its performance will take years to assess, as early-stage investments typically need a decade or more to mature.
For Munjal and Saini, the fund represents a new chapter after a turbulent period at Unacademy. For Indian AI and deeptech founders, it adds another source of early capital from investors who have experienced both the highs and lows of building a startup in India.
