A group of eight prominent venture capital and private equity firms from the U.S. and India—including Accel, Blume Ventures, Celesta Capital, and Premji Invest—have launched the India Deep Tech Investment Alliance, pledging over $1 billion in investments over the next decade to support India’s deep tech startups.
This collaboration addresses concerns raised by Indian Commerce Minister Piyush Goyal earlier this year, who criticised many startups for focusing on consumer services such as food delivery instead of breakthrough innovation. Investors and founders countered that India lacks sufficient capital for deep tech ventures and praised the determination of local entrepreneurs.
The alliance is a unique formal coalition, pooling capital that is usually deployed independently, and aligns with the Indian government’s ₹1 trillion Research, Development, and Innovation (RDI) scheme that aims to boost strategic, technology-driven sectors. Members will invest in India-registered startups over five to ten years, encouraged by local incorporation requirements for government incentives.
Beyond funding, the group will provide mentorship and network access and facilitate the expansion of U.S. startups into India.
“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,” Arun Kumar, managing partner at Celesta Capital and the alliance’s first chair, said.
Despite recent geopolitical tensions—including the US’s imposition of tariffs over India’s Russian oil purchases—the alliance remains confident in India’s potential as a hub for foundational technologies such as AI, semiconductors, quantum computing, and biotech.
“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,” stated Sriram Viswanathan, founding managing partner at Celesta Capital.
The alliance will focus on early-stage startups while avoiding later-stage deals. Viswanathan added that the $1 billion-plus commitment marks only the beginning, with hopes that more VC firms, private equity, and corporates will join. Members must comply with government RDI criteria, investing in sunrise sectors and backing India-domiciled startups.
The group intends to coordinate investments, share information, and present a united voice to engage with government policy, a vital step given the turmoil caused by regulatory changes made without industry input in recent years. An advisory committee from founding members will oversee goals while maintaining each fund’s independence.