Unleashing India’s Deeptech Potential: A Journey Towards Innovation

As an early-stage operator VC specialising in fintech, SaaS, and deeptech sectors, I keenly observe the pivotal role of deeptech in bolstering India’s Make in India initiative over the next decade. The recent green light from the union cabinet, approving a substantial investment of INR 10,372 Cr over five years for the India AI Mission, marks a significant boost for the Indian startup ecosystem. 

With a strategic allocation of nearly INR 2,000 Cr towards assisting deeptech startups, this initiative underscores the government’s commitment to fostering innovation in AI and deeptech.

The burgeoning deeptech scene in India, encompassing over 3,000 startups across diverse sectors, signifies a promising landscape ripe for investment. However, despite the burgeoning ecosystem, a significant portion of these startups struggle to secure the necessary financial backing, highlighting the urgent need for increased investment in this innovative sector.

The potential of deeptech in revolutionising various Indian industries is immense, as noted by NASSCOM. Technologies such as AI, machine learning, and others are poised to reshape sectors like healthcare, education, banking, and manufacturing. 

To realise India’s ambition of becoming a tech and innovation leader, substantial investment in the tech sector is imperative. Innovative technologies hold the key to addressing societal challenges and fostering development through collaboration between industry, academia, and government.

The introduction of the DeepTech Startup Policy by DPIIT underscores the government’s commitment to nurturing innovation in the deeptech sector. This policy aims to support research and development efforts in key sectors such as defence, space technology, IoT & hardware, and robotic process automation, presenting exciting opportunities for startups in these domains.

Investments in deeptech startups have been on the rise, reaching $496 Mn in 2023, according to data from the Nasscom Centre of Excellence. However, engaging in deeptech ventures comes with its share of challenges, including long gestation periods and the need for substantial capital investment. Despite these challenges, investors are increasingly recognising the strategic value of deeptech and its potential to drive innovation and profitability in the future.

India’s achievements in deeptech, such as the successful launch of the lunar spacecraft Chandrayaan-3, highlight the nation’s growing prowess in this field. With increasing investments in sectors like cleantech, semiconductors, artificial intelligence, and spacetech, there is a growing acknowledgement of the transformative potential of deeptech.

However, the deeptech space still lacks dedicated funds, despite the growing enthusiasm among investors. As an early-stage operator VC, I am particularly excited about the long-term prospects of deeptech and actively seek out founders building innovative solutions in this segment. 

While investing in cutting-edge technology may entail risks and longer gestation periods, it offers unparalleled opportunities for those willing to embark on this journey.

In conclusion, deeptech will play a pivotal role in driving India’s Make in India initiative over the next decade. With the government’s support and increasing investor interest, the deeptech ecosystem in India is poised for rapid growth and innovation. As an early-stage operator VC, I am committed to supporting and investing in Deeptech startups that have the potential to transform industries and shape the future of technology in India.