Could a $1 Billion Alliance Change the Future of India's Deep Tech Startups?

New Delhi, Sep 2 (NationPress) A coalition of eight prominent venture capital and private equity firms from the US and India has united to establish a $1 billion alliance dedicated to nurturing Indian deep tech startups over the next decade. This initiative, named the ‘India Deep Tech Investment Alliance,’ features prominent players such as Accel, Blume Ventures, Celesta Capital, Gaja Capital, Ideaspring Capital, Premji Invest, Tenacity Ventures, and Venture Catalysts, as reported by TechCrunch.

In unveiling this alliance, the members emphasized their objective to direct long-term private investment towards advanced technology enterprises while reinforcing the technological partnership between the US and India.

Indian deep tech startups have faced significant challenges in securing funding, with most investors gravitating towards consumer internet and delivery sectors. This new coalition aims to bridge that funding shortfall.

What sets this initiative apart is the collaboration of investors who typically vie for deals, now working together under a singular mission.

Each firm will allocate private capital over a span of five to ten years, specifically targeting Indian deep tech startups to align with the government’s new Research, Development, and Innovation (RDI) initiative, which provides incentives exclusively for locally incorporated entities, as per the report.

In addition to financial backing, the alliance will offer mentorship, networking opportunities, and support to facilitate startups' growth both locally and internationally.

Arun Kumar, managing partner at Celesta Capital, will take on the role of the inaugural chair of the alliance.

“This initiative aligns with the strategic interests of both India and the US, concentrating on critical and emerging technologies,” Kumar stated, as reported by TechCrunch.

This alliance emerges at a time when geopolitical relations between India and the US are under pressure.

Despite the rollout of the TRUST (Transforming the Relationship Utilising Strategic Technology) initiative earlier this year, tensions have escalated due to President Donald Trump’s imposition of a 50 percent tariff on Indian imports.

Nonetheless, investors maintain a positive outlook on India as a promising hub for foundational technologies such as semiconductors, AI, space, quantum computing, robotics, biotech, and climate technology.

Celesta Capital, known for its early investments in Indian startups like space-tech venture Agnikul and drone manufacturer IdeaForge, spearheaded this initiative following discussions with government and industry stakeholders.