US, Indian VCs Launch ‘India Deep Tech Alliance’ To Invest Over $1 Bn In Startups

Eight prominent India and US-based VC firms have together launched ‘India Deep Tech Alliance’ (IDTA) to infuse more than $1 Bn in the country’s deeptech startups over the next decade. 

Celesta Capital founding managing partner Sriram Viswanathan unveiled the IDTA on the first day of the ongoing ‘SEMICON India 2025’. He said that the alliance aims to mobilise private capital and expertise to build category-defining deeptech companies from India to serve the world and strengthen the US-India corridor.  

Accel, Blume Ventures, Gaja Capital, Ideaspring Capital, Premji Invest, Tenacity Ventures, and Venture Catalysts are among the other members of the IDTA.

Each member will invest capital in the India deeptech space over the next 5-10 years across sectors like semiconductors, spacetech, quantum computing, robotics, AI, biotech and medical devices, energy and climate, and more. 

Viswanathan said that the IDTA expects the capital commitment to expand with the addition of new members to the alliance in future. 

“The IDTA’s mission is to accelerate entrepreneurship and ecosystem development within key technology sectors throughout the India-US corridor, aligning with the TRUST (Transforming the Relationship Utilizing Strategic Technology) initiative that was announced by President Trump and Prime Minister Modi in February this year,” the alliance said in a joint statement. 

This comes at a time when the Indian government is doubling down on sunrise deeptech sectors. Recently, the Union cabinet also approved INR 1 Lakh Cr R&D fund. 

Historically, VCs in India have been hesitant to invest in the deeptech sector due to longer gestation periods. Earlier this year, commerce minister Piyush Goyal ignited a debate by highlighting the lack of investments in deeptech ventures. 

Goyal showcased a slide comparing Indian startup sectors like foodtech, D2C and quick commerce with China’s dominance in deeptech sectors like EVs, semiconductors, AI and robotics to highlight the differences between the two startup ecosystems. 

Sharing his perspective on the topic, Info Edge founder Sanjeev Bikhchandani later said that deeptech innovation should not rest solely on the shoulders of the startup ecosystem. He urged both the government and the industry to actively step up and contribute. 

It is pertinent to mention that some VCs are actively investing in deeptech startups. For instance, Speciale Invest recently announced the close of its third fund at INR 600 Cr. The fund will back ventures across sectors such as spacetech, advanced manufacturing, AI infrastructure, semiconductors, climate tech, computational biology, dual-use defence tech, quantum systems, energy storage and healthtech.

Similarly, Yali Capital also closed its maiden deeptech-focussed fund at INR 893 Cr to back startups operating in segments like chip design, robotics, genomics, smart manufacturing, aerospace and AI sectors.

As per Inc42’s ‘Indian Tech Startup Funding Report, H1 2025’, advanced hardware and technology startups raised $311 Mn across 43 deals in the first six months of the ongoing calendar year.