Eight venture capital and private equity firms from the U.S. and India, including Accel, Blume Ventures, Celesta Capital, and Premji Invest, have joined forces to launch the India Deep Tech Investment Alliance, pledging over $1 billion across the next decade to support India’s deep tech ecosystem and strengthen cross-border tech ties.
The coalition comes after India’s Commerce Minister Piyush Goyal criticized local startups earlier this year for prioritizing food delivery over innovation, sparking debate about the lack of capital available for deep tech founders. By pooling long-term private capital, the alliance seeks to address this gap and channel funding into sectors such as AI, semiconductors, robotics, biotech, space, energy, and climate tech.
What makes the move unusual is its structure. While VCs frequently co-invest, formal alliances with binding pledges are rare. Member firms include Celesta Capital, Accel, Blume Ventures, Gaja Capital, Ideaspring Capital, Premji Invest, Tenacity Ventures, and Venture Catalysts. Celesta Capital’s Arun Kumar will serve as the inaugural chair.
The alliance coincides with New Delhi’s approval of a ₹1 trillion ($11 billion) Research, Development, and Innovation scheme aimed at boosting deep tech R&D. To qualify for incentives, startups must be domiciled in India, a shift from the common practice of Indian founders incorporating overseas.
Beyond funding, the group plans to provide mentorship, network access, and market expansion support, while also engaging with the Indian government on policy. An advisory committee with representatives from Accel, Premji Invest, and Venture Catalysts will guide objectives and coordination.
Despite U.S.-India tensions, including new tariffs imposed by Washington, the alliance underscores the strategic importance of deep tech. “Over the next decade, startups will build in India and export breakthrough solutions to the world. The tailwinds are in place: ambition, talent, policy intent, and patient capital,” said Accel partner Anand Daniel.
Related:Indian Startups Shut Down Real-Money Gaming After Parliament Passes Ban
Early-stage companies, from seed to Series B, will be the primary focus, with members signaling that more firms and corporates may join the alliance in the future.
