Eight U.S. and Indian venture capital and private equity firms have formed an unusual coalition to back India’s deep tech startups. The group, which includes storied investors Accel, Blume Ventures, Celesta Capital, and Premji Invest, has pledged more than $1 billion over the next decade to strengthen U.S.-India tech ties.
This alliance addresses longstanding funding concerns. Earlier this year, Indian Commerce Minister Piyush Goyal drew criticism after slamming domestic startups for focusing on food delivery instead of innovation. He contrasted them with Chinese firms in a presentation titled “India vs. China: The Startup Reality Check.” Several investors and founders countered that India lacks capital for deep tech ventures and argued that Goyal’s comments overlooked the determination of founders building for the local market. The new alliance appears to address these concerns directly, aiming to channel long-term private capital into deep tech ventures that have historically struggled to secure funding in India.
The move is notable because investors typically compete for deals rather than form formal alliances with binding pledges. While venture capital firms often co-invest on a deal-by-deal basis, most cross-border collaboration occurs informally through individual fund strategies, not through coordinated capital blocs.
Called the India Deep Tech Investment Alliance, the group brings together Celesta Capital, Accel, Blume Ventures, Gaja Capital, Ideaspring Capital, Premji Invest, Tenacity Ventures, and Venture Catalysts. The launch follows the Indian government’s approval of a ₹1 trillion (approximately $11 billion) Research, Development, and Innovation scheme, which was announced in the national budget earlier this year to boost deep tech research and development.
Under the alliance, each member will commit private capital over a 5- to 10-year period to Indian-domiciled deep tech startups. For now, there are relatively few such companies, as many of India’s best-known deep tech ventures with Indian founders are incorporated in the U.S. However, New Delhi has made local incorporation a requirement for incentives under its new RDI scheme, which the alliance members aim to leverage.
In addition to funding, the members will offer mentorship and network access. The firms also plan to utilize the alliance to help their portfolio companies expand into the Indian market.
The geopolitical backdrop for this collaboration is complicated. Earlier this year, the U.S. and Indian leaders launched the TRUST initiative to deepen tech ties. However, relations soon showed strain after the U.S. imposed a tariff on Indian goods over New Delhi’s continued purchases of Russian oil, a move analysts say has put the two leaders on opposite sides of a widening trade and geopolitical rift.
Despite these tensions, the alliance is betting on India as a hub for startups developing foundational technologies such as artificial intelligence, semiconductors, space, quantum computing, robotics, biotech, energy, and climate tech.
Celesta Capital, an early backer of Indian startups such as space-tech venture Agnikul, drone maker IdeaForge, and AI-driven cancer diagnostics firm OneCell Diagnostics, spearheaded the effort after discussions with industry stakeholders and the Indian government.
The alliance will focus on early-stage startups from seed to Series B while steering clear of late-stage investments. The billion-dollar-plus commitment is described as just the beginning, with expectations for more financial VC firms, private equity firms, and corporates with significant investment programs to join.
The alliance does not set its own eligibility criteria for new members. Participants must meet the Indian government’s conditions under the RDI scheme, including investing in designated sunrise sectors, backing India-domiciled startups, and securing local regulatory approvals.
As a group, the investors plan to engage with the Indian government on policy and incentives to advance private industry’s interests and act as a unified voice. This is particularly important as past regulatory changes rolled out without industry input have led to turmoil, with some moves drawing intense criticism from U.S. investors before being withdrawn.
The alliance’s members will share information voluntarily and coordinate on pipeline development, due diligence, and co-investment opportunities. An advisory committee comprising representatives from Accel, Premji Invest, and Venture Catalysts will help establish shared objectives and ensure coordination while preserving the independence of each fund.
This alliance could prove a double-edged sword for Indian deep tech startups. While pooling long-term capital and presenting a unified voice to the government appears beneficial, there is risk if coordination falters, leaving promising companies caught in the gaps. Over the next decade, startups are expected to build in India and export breakthrough solutions to the world, supported by ambition, talent, policy intent, and patient capital.