Eight U.S. and Indian venture capital and private equity firms have formed a coalition to back India’s deep tech startups. The alliance, which includes Accel, Blume Ventures, Celesta Capital, and Premji Invest, has pledged over $1 billion over the next decade. The goal is to strengthen U.S.-India tech ties and address longstanding funding concerns.
The India Deep Tech Investment Alliance was launched following the Indian government’s announcement of a ₹1 trillion (approximately $11 billion) Research, Development, and Innovation (RDI) scheme. The scheme aims to boost deep tech R&D and requires local incorporation for incentives. Each member of the alliance will commit private capital over a 5- to 10-year period to Indian-domiciled deep tech startups.
The alliance members will also offer mentorship and network access to their portfolio companies, helping them expand into the Indian market. “This is in line with the strategic interests of both India and the U.S., focusing on critical and emerging technologies,” said Celesta Capital managing partner Arun Kumar, who will be the inaugural chair of the alliance.
Investing in India’s deep tech startups
The alliance is optimistic about India as a hub for startups in AI, semiconductors, space, quantum, robotics, biotech, energy, and climate tech. “We find India a particularly interesting market, not just for new companies starting in India but also for U.S. companies looking to expand into the Indian market,” said Sriram Vishwanathan, founding managing partner at Celesta Capital. The alliance will focus on early-stage startups — from seed to Series B — and steer clear of late-stage investments.
Vishwanathan emphasized that the billion-dollar-plus commitment is just the beginning of their long-term support for India’s deep tech ecosystem. The alliance’s objective is also to engage with the Indian government on policy and incentives to advance private industry interests and act as a unified voice. An advisory committee, comprising representatives from Accel, Premji Invest, and Venture Catalysts, will help establish shared objectives and ensure coordination while preserving the independence of each fund.
Over the next decade, the alliance aims to help startups build in India and export breakthrough solutions globally. As Accel partner Anand Daniel noted, “The tailwinds are in place: ambition, talent, policy intent, and patient capital.”
