A coalition of eight venture capital and private equity firms from the United States and India has pledged more than $1 billion to support deep tech startups in India. The India Deep Tech Investment Alliance brings together Accel, Blume Ventures, Celesta Capital, Gaja Capital, Ideaspring Capital, Premji Invest, Tenacity Ventures, and Venture Catalysts. The firms said in a joint statement that they would deploy capital over the next five to ten years into Indian-domiciled startups specializing in areas such as artificial intelligence, semiconductors, space technology, robotics, and climate-focused solutions.
The launch of the alliance follows the Indian government’s approval of a Research, Development and Innovation scheme worth roughly $11 billion, announced in the national budget earlier this year to incentivize deep tech research and development. Celesta Capital, which has previously backed Indian ventures including space-tech firm Agnikul and drone manufacturer IdeaForge, spearheaded the formation of the alliance after discussions with policymakers and industry stakeholders. Arun Kumar, managing partner at Celesta Capital, will serve as the inaugural chair.
The alliance will initially focus on early-stage companies, from seed to Series B, rather than later-stage ventures. The members plan to collaborate with the Indian government on policy and incentives, sharing information, and synchronizing on pipeline development and due diligence.
Deep tech investments in India revitalized
An advisory committee comprising representatives from Accel, Premji Invest, and Venture Catalysts will help set shared objectives while maintaining each fund’s independence. Leadership within the alliance will be rotational. “This alliance could provide the necessary capital and unified voice to the government, potentially boosting the startup ecosystem in India.
However, there are risks if coordination falters, which could leave promising companies unsupported,” noted Accel partner Anand Daniel in a prepared statement. Despite geopolitical tensions, such as disagreements over New Delhi’s oil purchases from Russia, the alliance underscores a shared interest in fostering technological innovation and collaboration. It focuses on foundational technologies including AI, semiconductors, space, quantum computing, robotics, biotech, energy, and climate tech.
“We see India as a particularly interesting market, not just for new companies starting there, but also for U.S. companies looking to expand into the Indian market,” stated Sriram Viswanathan, founding managing partner at Celesta Capital. The billion-dollar commitment is seen as the beginning of a long-term investment journey, with expectations that more firms and corporates with significant investment programs will join the alliance.
