A coalition of major investors is banding together to build out the deep-tech startup ecosystem in India. The newly formed Indian Deep-Tech Alliance (IDTA), which includes major players such as NVIDIA, Qualcomm, and Celesta Capital, aims to bridge gaps in the country’s burgeoning ecosystem. Sriram Viswanathan, founding managing partner of Celesta Capital and founding executive council member of the IDTA, led this charge. Its official launch was in early September 2023.
The IDTA brings together seven of the largest American and Indian investors together. This remarkable catapult posse consists of Accel, Blume Ventures, Premji Invest, Gaja Capital, Ideaspring Capital, Tenacity Ventures and Venture Catalysts. The first is that the group operates as a “loose coalition of the willing.” This design enables the participating investors to adopt their own agenda while being collectively focused on shared objectives. This model encourages a collaborative ecosystem-wide effort to support the development of India’s deep-tech startups.
India’s deep-tech funding has seen an extraordinary increase, up 78% YoY to $1.6 billion in 2024. The IDTA stands poised to capitalize on this momentum. Their aim is to invest pre- and post-revenue capital, provide intense mentorship, and plug Indian startups into vital international networks over a five- to ten-year period. Especially in the context of the Indian government’s recent announcement of a new ₹1 trillion, or roughly $12 billion, research and development initiative. This new initiative is intended to help catalyze innovation throughout the public and private sectors.
He characterizes the IDTA as a multi-stakeholder coalition committed to furthering the growth of the Indian deep-tech ecosystem.
“We’re collaborating to share knowledge, to share deal flow, and all of that.” – Sriram Viswanathan, founding managing partner of Celesta Capital
The alliance’s approach includes leveraging the Indian government’s newly introduced Research, Development and Innovation (RDI) scheme. This new program will put significant money toward multimodal projects and other priority areas. These areas are energy security, quantum computing, robotics, space technology, biotechnology and artificial intelligence.
“It’s a coalition of the willing, wanting to support the development of the Indian deep tech ecosystem.” – Sriram Viswanathan
Qualcomm and Celesta Capital have already invested in Indian drone maker IdeaForge, which went public in 2023. The IDTA has won commitments of more than $1 billion, a sign that investors share a strong belief in India’s promise as a hub for deep-tech innovation.
NVIDIA’s participation gives the coalition an immense heft. The company plans to offer guidance on best practices for integrating AI and accelerated computing platforms, as well as participate in policy dialogues aimed at advancing India’s deep-tech capabilities.
Vishal Dhupar, NVIDIA’s managing director for South Asia, emphasizes the importance of collaboration among investors:
Bridging The Equity Gap Rama Bethmangalkar, India managing director at Qualcomm Ventures, says that creating an environment of trust among entrepreneurs is the need of the hour.
“If you are like minded and other VCs have allocated certain portion of their resources, dollars, time, and network, it helps each other and then collectively to work with the government.” – Vishal Dhupar
This, along with a myriad of other member benefits, offers an ever-evolving space for members to exchange best practices and explore new opportunities.
“What we need are role models to begin with. People are going to jump in. Entrepreneurs are going to get the confidence capital… In ten years, you’ll start seeing these as the companies listed on the main boards of our exchanges — deeply science- and tech-oriented firms.” – Rama Bethmangalkar
As a result, India is home to one of the most dynamic startup ecosystems today with more than 180,000 startups and over 120 unicorns. The IDTA is looking to lead deep-tech innovation through this promising ecosystem.
“This alliance is not a fund. There’s no obligation, no allocation, if you will, of any deal,” explains Viswanathan. “If Rama finds a deal, he will do it. If Rama finds it appropriate to bring in other investors, he’ll share the deal with other investors that he thinks are relevant for that investment.” – Sriram Viswanathan
With India’s landscape already home to more than 180,000 startups and over 120 unicorns, the IDTA is poised to significantly impact the future of deep-tech innovation in the country.