In a landmark move for India’s innovation ecosystem, eight major U.S. and Indian venture capital and private equity firms — including Accel, Blume Ventures, Celesta Capital, and Premji Invest — have come together to form the India Deep Tech Investment Alliance, pledging over $1 billion in capital over the next decade. The initiative seeks to address a long-standing funding gap for deep tech startups in India and bolster U.S.–India technology collaboration.
This announcement comes amid ongoing debates about India’s startup priorities. In April, Commerce Minister Piyush Goyal had criticized local entrepreneurs for focusing on food delivery rather than deep innovation, sparking backlash from investors and founders who cited the shortage of capital for deep tech ventures. The alliance appears to directly respond to such concerns, aiming to channel patient capital into startups working on foundational technologies such as AI, semiconductors, space, quantum computing, robotics, biotech, and climate tech.
The coalition stands out because investors typically compete for deals rather than operate under a formal alliance. Members — Celesta Capital, Accel, Blume Ventures, Gaja Capital, Ideaspring Capital, Premji Invest, Tenacity Ventures, and Venture Catalysts — will commit funds over a five- to ten-year horizon to India-domiciled startups. This aligns with New Delhi’s recent ₹1 trillion (approximately $11 billion) Research, Development, and Innovation (RDI) scheme, which offers incentives for locally incorporated deep tech ventures.
“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,” said Arun Kumar, managing partner at Celesta Capital and the inaugural chair of the alliance.
The alliance will also provide mentorship, network access, and help portfolio companies expand into the Indian market. Celesta Capital’s Sriram Vishwanathan, who helped spearhead the initiative, noted that this is “just the beginning,” and more VC, PE, and corporate investors are expected to join.
An advisory committee with representatives from Accel, Premji Invest, and Venture Catalysts will coordinate shared objectives and engagement with policymakers while preserving each fund’s independence.
“Over the next decade, startups will build in India and export breakthrough solutions to the world. The tailwinds are in place: ambition, talent, policy intent, and patient capital,” said Accel partner Anand Daniel.
