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Eight top VC firms unite in $1 bn+ push for India's deep tech startup ecosystem
The alliance, named the India Deep Tech Investment Alliance, brings together Celesta Capital, Accel, Blume Ventures, Gaja Capital, Ideaspring Capital, Premji Invest, Tenacity Ventures, and Ventures Catalysts.
Beyond financial support, members will provide mentorship, due diligence support, and network access.
In a move for India's startup ecosystem, eight U.S. and Indian venture capital and private equity firms have formed a rare coalition to back deep tech ventures, pledging more than $1 billion over the next decade, TechCrunch reported.
The alliance, named the India Deep Tech Investment Alliance, brings together Celesta Capital, Accel, Blume Ventures, Gaja Capital, Ideaspring Capital, Premji Invest, Tenacity Ventures, and Ventures Catalysts.
The group aims to pool long-term capital and resources for early-stage Indian deep tech startups - a segment that has long struggled to attract funding despite government incentives.
The move comes months after Commerce Minister Piyush Goyal criticized local entrepreneurs for prioritizing consumer startups such as food delivery over innovation-led ventures, sparking both backlash from founders who argued that India lacked sufficient capital for deep tech.
The new alliance seeks to bridge the gap by committing patient capital and collective mentorship, while also engaging with the Indian government on policy and incentives, the report added.
"This is about energizing the ecosystem and bringing like-minded investors together," Sriram Vishwanathan, founding manager at Celesta Capital told TechCrunch. "You could expect more firms to join this alliance, both financial VC firms and corporates."
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The coalition will focus on seed to Series B investments, steering clear of late-stage funding. Beyond financial support, members will provide mentorship, due diligence support, and network access.
An advisory committee featuring representatives from Accel, Premji Invest, and Venture Catalysts will set shared objectives, with leadership rotating over time.
The launch follows New Delhi's Rs 1 trillion ($11 billion) Research, Development, and Innovation (RDI) scheme, announced in the 2024-25 budget, which requires startups to be incorporated in India to qualify for incentives, the report added.
While many Indian-founded deep tech ventures currently register abroad, the alliance hopes to encourage local incorporation by tying investment to RDI eligibility.
Despite tense U.S.-India trade relations - worsened by President Donald Trump's recent 50% tariffs on Indian goods - the alliance signals optimism for bilateral technology collaboration.
Its focus spans AI, semiconductors, space, quantum computing, robotics, biotech, energy, and climate tech - areas seen as crucial for India's long-term innovation capacity.
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