Eight U.S. and Indian enterprise capital and personal fairness corporations — together with storied traders Accel, Blume Ventures, Celesta Capital, and Premji Make investments — have fashioned an uncommon coalition to again India’s deep tech startups, pledging greater than $1 billion over the subsequent decade to strengthen U.S.-India tech ties.
The alliance addresses longstanding funding issues. In April, Indian Commerce Minister Piyush Goyal drew criticism after slamming domestic startups for specializing in meals supply as a substitute of innovation, contrasting them with Chinese language corporations in a presentation titled “India vs. China: The Startup Actuality Test.” A number of traders and founders countered that India lacks capital for deep tech ventures and mentioned Goyal’s feedback overlooked the determination of founders constructing for the native market. The brand new alliance seems to handle these issues, aiming to channel long-term personal capital into deep tech ventures that many founders say have struggled to safe funding in India.
The transfer stands out as a result of traders sometimes compete for offers quite than formally band collectively underneath a named alliance with binding pledges. Whereas VCs typically co-invest on a deal-by-deal foundation, most cross-border collaboration happens informally by particular person fund methods, quite than by coordinated capital blocs.
Known as the India Deep Tech Funding Alliance, the group brings collectively Celesta Capital, Accel, Blume Ventures, Gaja Capital, Ideaspring Capital, Premji Make investments, Tenacity Ventures, and Enterprise Catalysts, the corporations mentioned in a joint assertion on Tuesday. The launch follows the Indian authorities’s approval of a ₹1 trillion (roughly $11 billion) Analysis, Improvement, and Innovation (RDI) scheme, introduced within the nationwide funds earlier this 12 months to spice up deep tech R&D.
Below the alliance, every member will commit personal capital over a 5- to 10-year interval to Indian-domiciled deep tech startups, the corporations mentioned. For now, there are comparatively few such corporations, as a lot of India’s best-known deep tech ventures with Indian founders are integrated within the U.S. However New Delhi has made native incorporation a requirement for incentives underneath its new RDI scheme, which the alliance members purpose to leverage.
Along with funding, the members will provide mentorship and community entry. The corporations additionally plan to make the most of the alliance to assist their portfolio corporations broaden into the Indian market.
“That is according to the strategic pursuits of each India and the U.S. on the governmental stage, specializing in vital and rising applied sciences,” mentioned Celesta Capital managing accomplice Arun Kumar, who would be the inaugural chair of the alliance, in an interview.
Techcrunch occasion
San Francisco
|
October 27-29, 2025
Nonetheless, the geopolitical backdrop is difficult. In February, President Donald Trump and Prime Minister Narendra Modi launched the TRUST (Reworking the Relationship Using Strategic Expertise) initiative to deepen U.S.–India tech ties. However relations quickly confirmed pressure, as Trump imposed a 50% tariff on Indian goods final month over New Delhi’s continued purchases of Russian oil, a transfer analysts say has put the two leaders on opposite sides of a widening commerce and geopolitical rift.
Regardless of these tensions, the alliance — however the geopolitical rift between the 2 leaders — is betting on India as a hub for startups creating foundational applied sciences reminiscent of AI, semiconductors, house, quantum, robotics, biotech, power, and local weather tech.
“We discover India as a very fascinating market, not only for the alternatives that exist for brand spanking new corporations that get began in India, but in addition for corporations within the U.S. which are looking for to broaden into the Indian market,” Sriram Vishwanathan, founding managing accomplice at Celesta Capital, informed TechCrunch.
Celesta Capital — an early backer of Indian startups reminiscent of space-tech enterprise Agnikul, drone maker IdeaForge, and AI-driven most cancers diagnostics agency OneCell Diagnostics — spearheaded the hassle after discussions with business stakeholders and the Indian authorities.
“Now we have put this factor collectively to really energize the ecosystem and produce like-minded traders collectively,” Vishwanathan mentioned.
The alliance will concentrate on early-stage startups — from seed to Sequence B — whereas steering away from late-stage investments, Vishwanathan famous. He additionally said that the billion-dollar-plus dedication is just the start, as “any lengthy journey begins with step one.”
“You could possibly count on extra corporations to affix this alliance, each monetary VC corporations and personal fairness corporations,” he mentioned. “You must also count on corporates to affix who’ve fairly vital funding applications.”
Whereas the alliance doesn’t set its personal eligibility standards for brand spanking new members, Vishwanathan mentioned individuals should meet the Indian authorities’s situations underneath the RDI scheme — together with investing in “sunrise” sectors, backing India-domiciled startups, and securing native regulatory approvals.
“The alliance is only a platform for participating with the federal government,” he informed TechCrunch.
As a gaggle, the traders within the alliance plan to interact with the Indian authorities on coverage and incentives to advance personal business’s pursuits and act as a unified voice, Vishwanathan mentioned.
Prior to now, regulatory adjustments rolled out with out business enter have led to turmoil in India. Some such strikes have drawn intense criticism from U.S. traders and had been subsequently withdrawn following widespread outrage.
The alliance’s members will share info voluntarily and coordinate on pipeline growth, due diligence and co-investment alternatives, the corporations mentioned.
An advisory committee, comprising representatives from Accel, Premji Make investments, and Enterprise Catalysts, among the many early individuals, will assist set up shared aims and guarantee coordination whereas preserving the independence of every fund.
Kumar said that whereas he’s the inaugural chair, the alliance’s management will rotate because it strikes ahead.
The alliance might show a double-edged sword for Indian deep tech startups. Whereas pooling long-term capital and giving a unified voice to the federal government seems to be a boon, there’s threat if coordination falters, leaving promising corporations caught within the gaps.
“Over the subsequent decade, startups will construct in India and export breakthrough options to the world. The tailwinds are in place: ambition, expertise, coverage intent, and affected person capital,” mentioned Accel accomplice Anand Daniel in a ready assertion.
