Nvidia and Qualcomm Ventures have joined a growing coalition of U.S. and Indian investors backing India’s deep tech startups. The group launched in September with more than one billion dollars in commitments. This timing aligns with India’s new one trillion rupee, or around twelve billion dollar, research and development initiative.
Nvidia has joined the coalition as a strategic technical adviser without any financial commitments. Qualcomm Ventures has come on board alongside six Indian venture firms, bringing additional capital commitments totaling more than eight hundred fifty million dollars.
India is home to more than 180,000 startups and over 120 unicorns. In its early years, much of the ecosystem closely mirrored Western business models before evolving into SaaS companies that serve global clients, especially those in the U.S. In recent years, however, India’s focus has shifted to building ventures that tackle harder, infrastructure-scale problems. These range from launching satellites and electrifying transportation to designing semiconductors.
The Indian government has sought to accelerate this shift as major economies race to secure technological sovereignty. Yet capital for such ventures remains scarce. They require a longer gestation period than traditional sectors, and most venture capitalists favor proven, lower-risk models.
In September, Silicon Valley- and India-based Celesta Capital spearheaded the launch of the India Deep Tech Alliance to bridge that gap. It brought together seven major U.S. and Indian investors: Accel, Blume Ventures, Premji Invest, Gaja Capital, Ideaspring Capital, Tenacity Ventures, and Venture Catalysts. The latest addition includes Indian venture firms Activate AI, Chiratae Ventures, InfoEdge Ventures, Kalaari Capital, Singularity Holdings, and YourNest Venture Capital.
The coalition aims to invest capital and provide mentorship and network access to Indian deep tech startups over the next five to ten years. It also plans to collaborate with the Indian government on its policy initiatives, including the recently introduced Research, Development and Innovation scheme.
Sriram Viswanathan, founding managing partner of Celesta Capital and a founding executive council member of the alliance, described it as a coalition of the willing that wants to support the development of the Indian deep tech ecosystem.
Approved by the Indian cabinet earlier this year and rolled out by Prime Minister Narendra Modi, the one trillion rupee Research, Development and Innovation scheme will fund projects in areas such as energy security, quantum computing, robotics, space tech, biotech, and AI. Funding will be provided through long-term loans, equity infusions, and allocations to deep tech funds of funds. The venture firms participating in the alliance plan to leverage this initiative to back Indian-domiciled deep tech startups.
Viswanathan stated that this is a seminal moment where government action will drive the creation of many deep tech companies, supported by venture capitalists in India. He noted a turning point in the Indian entrepreneurial ecosystem in favor of deep tech.
The alliance has brought in Nvidia to provide strategic and technical guidance to its members and emerging startups. The U.S. chipmaker will advise on best practices for integrating its AI and accelerated computing platforms. It will also offer technical talks and training and contribute to policy dialogues between industry and the government to advance India’s deep tech capabilities.
Although Nvidia will not participate financially, Vishal Dhupar, Nvidia’s managing director for South Asia, said the company will share technical insights and scalable computing resources with Indian startups in the coalition. Viswanathan added that Nvidia’s support is a significant validation of the ecosystem and an endorsement of the collective objective.
Unlike Nvidia, Qualcomm is joining the alliance with an investment focus. The San Diego based chipmaker made its first India investment in 2008, with early bets including Google Maps rival MapmyIndia. Qualcomm and Celesta also backed Indian drone maker IdeaForge.
However, Qualcomm’s participation will extend beyond capital, according to Rama Bethmangalkar, India managing director at Qualcomm Ventures. The firm plans to help startups connect with its portfolio companies, partner networks, and internal teams.
Bethmangalkar explained that when venture capitalists allocate resources, dollars, time, and network, it helps everyone collectively work with the government and align on key areas like quantum, semiconductors, and AI.
The success of the India Deep Tech Alliance remains to be seen. Viswanathan described the alliance as a loose coalition of the willing, noting that participating investors continue to run their own programs. They collaborate to share knowledge and deal flow. It is also unclear how much capital each participant will contribute, as the alliance is not a fund and there are no formal obligations for deal allocation.
India’s deep tech funding rose seventy-eight percent year-over-year to one point six billion dollars in 2024, according to a report by Nasscom and Zinnov. While the growth is promising, the capital raised still trails far behind that in developed markets, especially the U.S.
The alliance may help increase that figure, but more importantly, it is expected to draw global attention to India’s startup ecosystem, which could attract more investors and corporate venture funds. Bethmangalkar stated that what is needed are role models to begin with, which will give entrepreneurs confidence and capital. He predicted that in ten years, deeply science- and tech-oriented firms will be listed on the main boards of exchanges.