Deep-Tech Funding Landscape in India: A Growing Ecosystem
According to Tracxn, Indian deep-tech companies made significant strides in 2025, raising a remarkable $1.06 billion across 137 funding rounds by July. This figure is captivating—it represents a doubling of funds raised during the same timeframe in 2024. Yet, despite this growth, many startup founders point to persistent challenges, particularly the accessibility of capital. The struggle to secure funds continues amid limited infrastructure and a lack of government incentives, underscoring the need for more robust financial investment in this burgeoning sector.
Nevertheless, several venture capital firms are stepping up to bridge this capital gap, committed to nurturing the deep-tech ecosystem in India. Despite some skepticism voiced by commerce minister Piyush Goyal regarding the sector earlier this year, numerous investors remain optimistic, recognizing India’s potential to become a global leader in deep technology.
Shift from Software to Core Technologies
In the past decade, India has notably shifted its focus from software services to developing core technologies. This shift has paved the way for a new breed of venture capital firms that are specifically aligned with deep-tech objectives. This new landscape is populated by several notable VCs:
Speciale Invest
Founded in 2017 and based in Chennai, Speciale Invest has emerged as a prominent player in the deep-tech funding scene. With a focus on sectors like space tech, advanced manufacturing, and quantum technology, the firm typically invests at the pre-seed and seed stages, averaging around $1 million per investment. They also reserve about 50% of their capital for follow-on investments.
Among their noteworthy portfolio companies are Agnikul Cosmos, GalaxEye, and QNu Labs. Their recent closure of Fund III, with an oversubscribed target of ₹600 crore, not only signals growing investor confidence but also underscores their commitment to nurturing deep-tech innovations.
YourNest Venture Capital
Established in 2011 in Gurugram, YourNest has targeted AI, IoT, and robotics among other burgeoning areas. As a fund that frequently acts as “nurture capital,” they invest predominantly in pre-Series A and seed rounds, and have backed over 35 deep-tech companies. Their current fund, Fund III, is nearly ₹612.5 crore, aiming to capitalize on a wide array of deep-tech innovations.
Seafund
Founded in 2016 and based in Bengaluru, Seafund pinpoints sectors like semiconductors, space tech, and advanced materials for its investments. With a focus on seed and pre-Series A stages, their check sizes can reach up to ₹4 crore. Their second fund is targeting ₹200 crore, reinforcing their commitment to expanding their investments in deep tech.
Capital-A
Founded in 2021 in Bengaluru, Capital-A is a relatively young player explicitly supporting industrial tech and climate initiatives. Their investments typically range between ₹6.5 crore to ₹26.5 crore. They have notable portfolio examples like Manastu Space, whose recent $3 million funding round they led, demonstrating their active engagement in capital-intensive ventures.
pi Ventures
Launched in 2016 and also based in Bengaluru, pi Ventures focuses on technologies like AI, robotics, and quantum computing. Known for writing checks at the pre-seed and seed stages, they boast impressive investments in transformative companies like Agnikul Cosmos and Orbitt Space.
Accel (India)
With its global headquarters in Palo Alto and a substantial presence in India, Accel is an influential player in the VC landscape. While not purely a deep-tech fund, it has increasingly turned its focus toward tech and hardware investments in India, including firms like Nabhdrishti Aerospace and various startups within the India Deep Tech Investment Alliance.
Blume Ventures
Focusing on early-stage investments across multiple sectors, Blume Ventures has backed deep-tech companies like TakeMe2Space and GreyOrange. Their variable investment sizes allow them to maneuver flexibly within the evolving market.
IIMA Ventures
Tied to IIM Ahmedabad, IIMA Ventures has a broad portfolio encompassing deep tech and climate technology. They support startups via pre-seed and seed investments, maintaining a strong acumen in nurturing initiatives aimed at innovation and sustainability.
A Promising Trajectory Ahead
The Indian deep-tech funding landscape shows promising signs of growth and diversification, driven by both emerging and established venture capital firms. With a commitment to fostering innovation and the resilience of technology startups, the country is well on its way to establishing a significant foothold in the global deep-tech arena. While challenges remain, the relentless pursuit of investment and technology advancement paints a hopeful picture for the future of deep tech in India.