Eight U.S. and Indian venture capital and private equity firms — including storied investors Accel, Blume Ventures, Celesta Capital, and Premji Invest — have formed an unusual coalition to back India’s deep tech startups, pledging more than $1 billion over the next decade to strengthen U.S.-India tech ties.
The alliance addresses longstanding funding concerns. In April, Indian Commerce Minister Piyush Goyal drew criticism after slamming domestic startups for focutilizing on food delivery instead of innovation, contrasting 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 declared Goyal’s comments overviewed the determination of founders building for the local market. The new alliance appears to address these concerns, aiming to channel long-term private capital into deep tech ventures that many founders state have struggled to secure funding in India.
The relocate stands out becautilize investors typically compete for deals rather than formally band toobtainher under a named alliance with binding pledges. While VCs often co-invest on a deal-by-deal basis, most cross-border collaboration occurs informally through individual fund strategies, rather than through coordinated capital blocs.
Called the India Deep Tech Investment Alliance, the group brings toobtainher Celesta Capital, Accel, Blume Ventures, Gaja Capital, Ideaspring Capital, Premji Invest, Tenacity Ventures, and Venture Catalysts, the firms declared in a joint statement on Tuesday. The launch follows the Indian government’s approval of a ₹1 trillion (approximately $11 billion) Research, Development, and Innovation (RDI) scheme, announced in the national budobtain earlier this year to boost deep tech R&D.
Under the alliance, each member will commit private capital over a five- to 10-year period to Indian-domiciled deep tech startups, the firms declared. 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. But New Delhi has built 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 assist their portfolio companies expand into the Indian market.
“This is in line with the strategic interests of both India and the U.S. at the governmental level, focutilizing on critical and emerging technologies,” declared Celesta Capital managing partner Arun Kumar, who will be the inaugural chair of the alliance, in an interview.
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Still, the geopolitical backdrop is complicated. In February, President Donald Trump and Prime Minister Narconcludera Modi launched the TRUST (Transforming the Relationship Utilizing Strategic Technology) initiative to deepen U.S.-India tech ties. But relations soon revealed strain, as Trump imposed a 50% tariff on Indian goods last month over New Delhi’s continued purchases of Russian oil, a relocate analysts state has put the two leaders on opposite sides of a widening trade and geopolitical rift.
Despite those tensions, the alliance — notwithstanding the geopolitical rift between the two leaders — is betting on India as a hub for startups developing foundational technologies such as AI, semiconductors, space, quantum, robotics, biotech, energy, and climate tech.
“We find India as a particularly interesting market, not just for the opportunities that exist for new companies that obtain started in India, but also for companies in the U.S. that are seeking to expand into the Indian market,” Sriram Viswanathan, founding managing partner at Celesta Capital, notified TechCrunch.
Celesta Capital — an early backer of Indian startups such as space-tech venture Agnikul, drone creater IdeaForge, and AI-driven cancer diagnostics firm OneCell Diagnostics — spearheaded the effort after discussions with industest stakeholders and the Indian government.
“We have put this thing toobtainher to actually energize the ecosystem and bring like-minded investors toobtainher,” Viswanathan declared.
The alliance will focus on early-stage startups — from seed to Series B — while steering clear of late-stage investments, Viswanathan noted. He also stated that the billion-dollar-plus commitment is just the launchning, as “any long journey starts with the first step.”
“You could expect more firms to join this alliance, both financial VC firms and private equity firms,” he declared. “You should also expect corporates to join who have pretty significant investment programs.”
While the alliance does not set its own eligibility criteria for new members, Viswanathan declared participants must meet the Indian government’s conditions under the RDI scheme — including investing in “sunrise” sectors, backing India-domiciled startups, and securing local regulatory approvals.
“The alliance is just a platform for engaging with the government,” he notified TechCrunch.
As a group, the investors in the alliance plan to engage with the Indian government on policy and incentives to advance private industest’s interests and act as a unified voice, Viswanathan declared.
In the past, regulatory modifys rolled out without industest input have led to turmoil in India. Some such relocates have drawn intense criticism from U.S. investors and were subsequently withdrawn following widespread outrage.
The alliance’s members will share information voluntarily and coordinate on pipeline development, due diligence, and co-investment opportunities, the firms declared.
An advisory committee, comprising representatives from Accel, Premji Invest, and Venture Catalysts, among the early participants, will assist establish shared objectives and ensure coordination while preserving the indepconcludeence of each fund.
Kumar stated that while he is the inaugural chair, the alliance’s leadership will rotate as it relocates forward.
The alliance could prove a double-edged sword for Indian deep tech startups. While pooling long-term capital and giving a unified voice to the government appears to be a boon, there is risk if coordination falters, leaving promising companies caught in the gaps.
“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,” declared Accel partner Anand Daniel in a prepared statement.
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