Photo by Musemind UX Agency on Unsplash
In a rare team-up, eight major U.S. and Indian venture firms—including names like Accel, Celesta Capital, and Premji Invest—just launched a $1 billion+ alliance to back India’s deep tech startups. It’s called the India Deep Tech Investment Alliance, and it might just change the startup landscape in a big way.
Unlike the usual VC playbook, which is all about competition and deal-chasing, these firms are committing long-term capital together. We’re talking at least half a decade—some even up to 10 years—to support Indian-domiciled startups working on high-impact technologies like AI, robotics, quantum computing, space tech, and biotech.
Let’s unpack why this move matters, and why it’s happening now.
The India vs China Startup Debate Sparked It
The spark came earlier this year when India’s Commerce Minister, Piyush Goyal, criticized local startups for focusing too much on food delivery and too little on real innovation. In a bold comparison titled “India vs. China: The Startup Reality Check,” he said Indian startups were falling behind in innovation efforts.
That didn’t sit well with many founders and investors. Folks fired back, saying the issue isn’t lack of ambition—it’s lack of capital. Especially for deep tech, which typically requires big upfront investment and patience before seeing returns.
So now, this alliance is stepping in to fill that funding gap.
Who’s Behind the Alliance?
Here are the eight founding firms:
- Celesta Capital
- Accel
- Blume Ventures
- Gaja Capital
- Ideaspring Capital
- Premji Invest
- Tenacity Ventures
- Venture Catalysts
Celesta Capital, known for investing early in space-tech startup Agnikul and drone maker IdeaForge, kickstarted the effort. They’ve been in talks with India’s government and other VCs for months to find a path forward.
Arun Kumar, Managing Partner at Celesta Capital, will serve as the alliance’s first chair, although leadership will rotate over time.
What’s Unique About This VC Play
Photo by Onkarphoto on Unsplash
This isn’t your typical co-investment handshake. The alliance comes with binding pledges of over $1 billion and sets the stage for a more deliberate, aligned approach. That includes:
- Focus on early-stage deals (seed to Series B)
- Investments in India-domiciled startups only
- Participation in India’s new RDI scheme
- Ongoing dialogue with the Indian government
- Mentorship, network access, and strategic support
Plus, there are plans for an advisory committee, featuring reps from Accel, Premji Invest, and Venture Catalysts, to keep objectives aligned and share insights.
Sriram Vishwanathan, Celesta’s founding partner, summed it up neatly: “We put this thing together to energize the ecosystem and bring like-minded investors together.”
Timing Is Everything
The alliance launch follows India’s approval of a ₹1 trillion (about $11 billion) Research, Development, and Innovation initiative. This RDI scheme is designed to scale research in critical sectors, but only startups incorporated in India can tap into it.
So, if you’re a startup with global ambitions but Indian roots, now’s the time to register locally, especially if you’re eyeing space, AI, clean tech, or health innovation.
These investors see India as both a base for building and a target market for expansion. “Over the next decade, startups will build in India and export breakthrough solutions to the world,” said Anand Daniel, a partner at Accel.
What’s the Catch?
Of course, this kind of coordination isn’t risk-free. If the alliance fails to align over time—or if government policy shifts too fast without input—some promising ventures could slip through the cracks.
But the opportunity seems to outweigh the risk. “This is just the beginning,” said Vishwanathan. In fact, more VC and private equity firms are expected to join down the line, along with corporates who have strong investment arms.
For now, the alliance gives India’s deep tech founders something they’ve long needed: real backing, long-term capital, and a voice at the table. It might not be a revolution, but it’s a serious step toward building the next wave of global tech out of India.
And that’s worth paying attention to.
Keywords: Venture Capital, Deep Tech, India, Startups, Innovation, Investment Alliance, AI, Robotics, Quantum Computing, Biotech
