Eight private equity and venture capital firms from India and the United States will invest over $1 billion in Indian deep tech startups in the next 10 years, according to reports. The goal is to reinforce technological connections between the two countries.
The group, named the 'India Deep Tech Investment Alliance', consists of: Celesta Capital,
Accel, Blume Ventures, Gaja Capital, Idea Spring Capital, Premji Invest, Tenacity Ventures
Venture Catalysts. The group members have requested to invest private capital into Indian deep tech startups (seed to Series B) over a five- to ten-year time horizon. They plan to provide mentorship and networking opportunities by providing direct access to experienced investors and industry experts. They also plan to help their portfolio companies expand into the Indian market.
Alliance to fuel innovation and early-stage investments
Arun Kumar, the managing partner of Celesta Capital and founding chair of the alliance, in a TechCrunch article said,"This is in keeping both with the strategic interests of both India and the U.S. on the government level, on the use of the collaboration with countries on critical and emerging technologies, "It also plans to assist portfolio companies in expanding into the Indian market.
The partnership will focus on early-stage companies from seed to Series B rounds and avoid late-stage investments stated Sriram Viswanathan Celesta Capitals founding managing partner. Companies with sizable investment programs should also be expected to join. This development follows earlier this year's approval by the Indian government of a Research Development and Innovation (RDI) scheme worth Rs 1 lakh crore or approximately $11 billion to support research and development in deep technology. Although there aren't any rigorous requirements for new members to join the alliance, Viswanathan stated that participants must adhere to the Indian government's RDI scheme requirements. This includes funding Indian-domiciled startups investing in sunrise industries and securing regional regulatory approvals. Because investors usually compete rather than establish legally binding alliances the formal alliance is intriguing. Cross-border cooperation typically occurs informally rather than through formal capital groups even though venture capitalists frequently co-invest in individual deals.
However, complications remain as President Donald Trump and Prime Minister Narendra Modi launched the TRUST (Transforming the Relationship Utilising Strategic Technology) initiative to deepen US-India tech cooperation. Yet tensions soon surfaced, with President Trump imposing a 50% tariff on Indian goods last month due to India’s ongoing purchase of Russian oil. Analysts suggest this move highlights a growing trade and geopolitical divide between the two leaders and, in turn, the countries.
