India needs a deeptech fund and not just a startup fund
With the rise of India Stack, UPI and consumer apps, India has rapidly evolved into a digital economy. This has enabled Indians to go online to ease payments, logistics, e-health, etc. While digital-first startups have reshaped the consumer economy and enabled incredible convenience, they depend on existing infrastructure, global tech stacks, and incremental innovation.
By contrast, deeptech startups seek to build new knowledge, new capabilities, and new industries by leveraging core science, engineering, and research. These startups operate in the real economy, building physical products, core technologies, and complex systems.
Indian tech talent has been innovating and building next-gen technology for global companies for many years. But today, what has changed is that best-in-class Indian talent is building in India for India. They are building to solve real problems and aligning with national strategic imperatives, which include semiconductor and quantum, space to biotechnology, electronics to materials, etc.
These deeptech startup founders are driven by an ambitious vision and innovation based on fundamental science. It’s incredible what is bubbling on the ground: UAVs that can operate underwater, or those that can reach Siachen, leveraging space to connect the unconnected, and using plant-based proteins to heal burns, fractures.
Globally, sovereign investments in deeptech have driven revolutions in clean energy, healthcare, aerospace, and cybersecurity. These technologies are not merely market opportunities; they are tools of strategic leverage and self-reliance. Such startups need deep pockets of patient money and an environment that allows them to develop, evolve, and then commercialise. Hence, there is a need for both public and private capital: equity, debt, and grants. It is significant to note that the government has already unlocked funding through grant schemes, whether through SISFS (Startup India Seed Fund Scheme), the first and second Fund of Funds (under the SIDBI umbrella), the space-tech fund, BIRAC’s grant ecosystem and ACE Fund, and, most recently, the RDI Fund. Over Rs 1.2 lakh crore in early-stage funding has been unlocked by the central government. Apart from this, state governments also have their startup funds. All these funds are catalytic in unlocking private investment. Domestic private funding has also opened up, but very, very warily.
Read more at: https://yourstory.com/2025/09/india-needs-a-deeptech-fund-and-not-just-a-startup-fund