It looks like Indian venture capital firms are looking to invest big in Indian deep tech. Eight U.S. and Indian venture capital and private equity firms — including storied investors Accel, Blume Ventures, Celesta Capital, and Premji Invest — have formed an unusual coalition to back India’s deep tech startups, pledging more than $1 billion over the next decade to strengthen U.S.-India tech ties.
“This is in line with the strategic interests of both India and the U.S. at the governmental level, focusing on critical and emerging technologies,” said Celesta Capital managing partner Arun Kumar, who will be the inaugural chair of the alliance, in an interview.
“We find India as a particularly interesting market, not just for the opportunities that exist for new companies that get started in India, but also for companies in the U.S. that are seeking to expand into the Indian market,” Sriram Vishwanathan, founding managing partner at Celesta Capital, told TechCrunch.
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Under the alliance, each member will commit private capital over a 5- to 10-year period to Indian-domiciled deep tech startups, the firms said. For now, there are relatively few such companies, since many of India’s best-known deep tech ventures founded by Indians are incorporated in the U.S. But New Delhi has made local incorporation a requirement for incentives under its new RDI scheme, which the alliance members aim to leverage.
“We have put this thing together to actually energize the ecosystem and bring like-minded investors together,” Vishwanathan said.
Deep tech refers to technology innovations based on significant scientific discoveries and engineering breakthroughs. Unlike consumer-focused apps or software, deep tech involves complex research and development in advanced fields such as artificial intelligence, robotics, quantum computing, biotechnology, advanced materials, and clean energy.
Deep tech aims to solve fundamental problems and create new capabilities that can transform entire industries and society. For example, breakthroughs in AI can revolutionize healthcare diagnostics, while advances in clean energy technologies help combat climate change. Because of the long timelines and high complexity, deep tech startups often face higher risks but also the potential for huge rewards and lasting impact.
Called the India Deep Tech Investment Alliance, the group brings together Celesta Capital, Accel, Blume Ventures, Gaja Capital, Ideaspring Capital, Premji Invest, Tenacity Ventures, and Venture Catalysts, the firms said in a joint statement on Tuesday.
The formation of the India Deep Tech Investment Alliance marks a significant milestone in fostering innovation and strengthening collaboration between Indian and U.S. venture capital ecosystems. By pledging over $1 billion over the next decade, this coalition aims to energize India’s deep tech sector, supporting startups that focus on transformative technologies such as AI, robotics, quantum computing, and clean energy.
This strategic partnership aligns with governmental priorities from both countries, emphasizing critical and emerging technologies that have the potential to solve fundamental challenges and reshape industries globally. While deep tech ventures often require substantial time and investment due to their complexity, the alliance’s commitment signals strong confidence in India’s growing tech landscape.