AgenciesEight venture capital and private equity firms from the US and India are set to invest over $1 billion in India’s deep tech startups over the next decade, according to media reports. The initiative aims to strengthen technological ties between the two countries.
Alliance members
The alliance, called the ‘India Deep Tech Investment Alliance’, comprises:
Focus area
“This is in line with the strategic interests of both India and the US at the governmental level, focusing on critical and emerging technologies,” said Arun Kumar, managing partner of Celesta Capital and the alliance’s inaugural chair, as per TechCrunch.
The alliance will concentrate on early-stage startups, from seed to Series B rounds, while steering clear of late-stage investments, said Sriram Viswanathan, founding managing partner at Celesta Capital.
Viswanathan added, “You could expect more firms to join this alliance, both financial VC firms and private equity firms. You should also expect corporates that have pretty significant investment programmes to join.”
This development comes after the Indian government approved a Rs 1 lakh crore (around $11 billion) Research, Development, and Innovation (RDI) scheme earlier this year to support deep tech research and development.
While the alliance does not have strict entry criteria for new members, Viswanathan said that participants must comply with the Indian government’s requirements under the RDI scheme. This includes investing in “sunrise” sectors, backing startups domiciled in India, and obtaining local regulatory approvals.
The formal alliance is interesting because investors typically compete rather than form binding partnerships. While venture capitalists often co-invest in individual deals, cross-border collaboration usually happens informally, not through organised capital groups.
However, complications remain. In February, 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 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.
Alliance members
The alliance, called the ‘India Deep Tech Investment Alliance’, comprises:
- Celesta Capital
- Accel
- Blume Ventures
- Gaja Capital
- Ideaspring Capital
- Premji Invest
- Tenacity Ventures
- Venture Catalysts
Focus area
- Funding: Each member has committed to investing private capital over a five-to ten-year period in Indian deep tech startups (seed to Series B).
- Mentorship: The alliance will provide mentorship and networking opportunities by facilitating direct access to seasoned investors and industry leaders.
- Expansion: It also plans to assist portfolio companies in expanding into the Indian market.
“This is in line with the strategic interests of both India and the US at the governmental level, focusing on critical and emerging technologies,” said Arun Kumar, managing partner of Celesta Capital and the alliance’s inaugural chair, as per TechCrunch.
The alliance will concentrate on early-stage startups, from seed to Series B rounds, while steering clear of late-stage investments, said Sriram Viswanathan, founding managing partner at Celesta Capital.
Viswanathan added, “You could expect more firms to join this alliance, both financial VC firms and private equity firms. You should also expect corporates that have pretty significant investment programmes to join.”
This development comes after the Indian government approved a Rs 1 lakh crore (around $11 billion) Research, Development, and Innovation (RDI) scheme earlier this year to support deep tech research and development.
While the alliance does not have strict entry criteria for new members, Viswanathan said that participants must comply with the Indian government’s requirements under the RDI scheme. This includes investing in “sunrise” sectors, backing startups domiciled in India, and obtaining local regulatory approvals.
The formal alliance is interesting because investors typically compete rather than form binding partnerships. While venture capitalists often co-invest in individual deals, cross-border collaboration usually happens informally, not through organised capital groups.
However, complications remain. In February, 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 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.
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