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 focusing 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 said Goyal’s comments overlooked 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 say have struggled to secure funding in India.
The move stands out because investors typically compete for deals rather than formally band together 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 together Celesta Capital, Accel, Blume Ventures, Gaja Capital, Ideaspring Capital, Premji Invest, Tenacity Ventures, and Venture Catalysts, the firms said 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 budget earlier this year to boost deep tech R&D.
Under the alliance, each member will commit private capital over a 5- to 10-year period to Indian-domiciled deep tech startups, the firms said. 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 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.
“This is in line with the strategic interests of both India and the U.S. at the governmental level, focusing on critical and emerging technologies,” said 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 Narendra Modi launched the TRUST (Transforming the Relationship Utilizing Strategic Technology) initiative to deepen U.S.–India tech ties. But relations soon showed strain, as Trump imposed a 50% tariff on Indian goods last month 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 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.
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