NASSCOM Proposes Establishment Of INR 10K Cr Fund For Deeptech Startups

SUMMARY

NASSCOM has called for an establishment of an INR 10,000 Cr fund for deeptech startups seeking early stage investments

These startups will be split into two distinct segments, where one area will focus on high growth, large markets, and the other will address needs of national priority, and even in markets with low commercial potential

NASSCOM also recommended the government to encourage private coinvestment by employing a matching investment strategy to de-risk private capital investments in daughter funds

The National Association of Software and Services Companies (NASSCOM) has called for an establishment of an INR 10,000 Cr fund for deeptech startups seeking early stage investments.

These startups will be split into two distinct segments, where one area will focus on high growth, large markets such as spacetech, EV batteries, biotech and selective AI players with the goal of supporting globally competitive startups.

While the other group will address needs of national priority, and even in markets with low commercial potential, with critical technologies in areas like biosafety, defence, quantum computing, agricultural and climatetech.

Along with this new deeptech fund, NASSCOM also recommended the government to encourage private coinvestment by employing a matching investment strategy to de-risk private capital investments in daughter funds.

This development comes at a time when deeptech has gained significant attention, in terms of funding, with their innovative solutions brought into various sectors such as healthcare, biosciences, clean energy and space.

For instance, earlier this week, deeptech neuroscience startup BrainSightAI secured $5 Mn (around INR 43 Cr) in a Pre-Series A funding round to expand its presence in India, while also increasing its reach in Tier I cities while also extending to Tier II cities.

Additionally, Delhi NCR-based deeptech startup Proxgy also bagged fresh capital from Indian cricketer Anjikya Rahane as part of its ongoing $3 Mn (around INR 25.6 Cr) Series A funding round, in December 2024.

It is to note that as per the latest report of Inc42, of the $8.7 Bn raised via 81 new funds, deeptech startups funding saw about 10.42% rise compared to a year ago.

Updated at 12:40 PM