NEW DELHI– Eight leading venture capital and private equity firms from the U.S. and India have joined forces to form a $1 billion alliance to back Indian deep tech startups over the next decade, according to a TechCrunch report.
The new consortium, called the India Deep Tech Investment Alliance, includes Accel, Blume Ventures, Celesta Capital, Gaja Capital, Ideaspring Capital, Premji Invest, Tenacity Ventures, and Venture Catalysts. The group’s goal is to channel long-term private capital into advanced technology ventures while strengthening U.S.-India technology ties.
Deep tech startups in India have traditionally struggled to raise funds, with investors favoring consumer internet and delivery businesses. The alliance aims to close that funding gap. What sets it apart is that investors who usually compete for deals are formally working together under one umbrella with a shared commitment.
Each firm will invest private capital over a five- to ten-year horizon, focusing on Indian-domiciled deep tech ventures to align with the government’s new Research, Development, and Innovation (RDI) scheme, which offers incentives only to locally incorporated companies. In addition to funding, the alliance will provide mentorship, networking, and market access to help startups scale in India and globally.
Celesta Capital managing partner Arun Kumar will serve as the inaugural chair of the alliance. “This is in line with the strategic interests of both India and the U.S., focusing on critical and emerging technologies,” Kumar told TechCrunch.
The launch comes against the backdrop of strained U.S.-India trade relations, despite the rollout of the TRUST (Transforming the Relationship Utilising Strategic Technology) initiative earlier this year. Tensions have risen following President Donald Trump’s decision to impose a 50 percent tariff on Indian exports.
Still, investors remain bullish on India’s role as a hub for foundational technologies, including semiconductors, artificial intelligence, space, quantum computing, robotics, biotech, and climate tech. Celesta Capital, an early backer of Indian startups such as space-tech firm Agnikul and drone maker IdeaForge, spearheaded the alliance after consultations with the government and industry stakeholders. (Source: IANS)
