Eight U.S. and Indian venture capital firms and private equity firms, including Legendary Investor Acceleration, Bloom Ventures, Celesta Capital and Premji Invest-formed an unusual alliance to support deep technology startups in India and promised more than $1 billion over the next decade to strengthen U.S. Indian technology.
The alliance addresses long-standing funding issues. In April, Indian Commerce Minister Piyush Goyal After criticizing domestic startups To focus on food delivery rather than innovation, they were compared with Chinese companies to a speech “India vs. China: Entrepreneurship Reality Check”. Several investors and founders refute India lacks funds for deep technology venture capital and says Goyal’s comment Ignore determination Founder of building for local markets. The new alliance appears to address these issues, aiming to bring long-term private capital into deep technology businesses, which many founders believe have been working to acquire funds in India.
This move stands out because investors often compete for deals rather than formally uniting under designated alliances with designated alliances and binding commitments. Although venture capital is often co-invested through transaction bases, most cross-border collaboration occurs informally through individual fund strategies rather than through coordinated capital groups.
The group, known as the Indian Deep Technology Investment Alliance, brings together Celesta Capital, Accel, Blume Ventures, Gaja Capital, Ideas Pring Capital, Premji Invest, Premji Invest, stanacity Ventures and Venture Catalysts, the company said in a joint statement on Tuesday. The launch was in the Indian government Agree Research, Development and Innovation Program (RDI) Program (about $11 billion) announced in the National Budget earlier this year, Rs 1 trillion (about $11 billion) of research in the Development and Innovation Program to enhance Deep Tech R&D.
Under the alliance, each member will invest private capital into Indian-born deep technology startups within 5 to 10 years, the company said. Currently, there are relatively few such companies as India’s most famous Deep Tech Ventures merged with Indian founders in the United States, but New Delhi will make local companies a requirement under the incentives for its new RDI program, which the alliance members aim to take advantage of.
In addition to funding, members will provide guidance and network access. The companies also plan to use alliances to help their portfolio companies expand into the Indian market.
“This is in the strategic interests of India and the United States at the government level,” said Arun Kumar, partner at Celesta Capital Capital Capital Partect.
TechCrunch Events
San Francisco
|
October 27-29, 2025
Nevertheless, the geopolitical background is complex. In February, President Donald Trump and Prime Minister Narendra Modi Trust started (Change relationships through strategic technology) The initiative deepens the relationship between Indian technology in the United States. But relationships will soon show pressure because Trump 50% tariff on Indian goods Last month, an analyst said while continuing to buy Russian oil in New Delhi Put two leaders on opposite sides Expand trade and geopolitical rifts.
Despite these tensions, despite geopolitical rifts between the two leaders, the alliance remains betting in India as a hub for developing underlying technologies such as AI, semiconductors, space, quantum, robotics, biotechnology, energy, energy and climate technologies.
“We think India is a particularly interesting market, not only to start a new company opening in India, but also for companies looking to expand into the Indian market,” Sriram Vishwanathan, founding board partner at Celesta Capital, told TechCrunch.
Celesta Capital – Early supporters of Indian startups such as Space Technology Venture Capital Agnikuldrone manufacturer Ideaforgeand AI-powered cancer diagnosis companies Onecell Diagnosis – Be the first to make efforts after discussions with industry stakeholders and the Indian government.
“We’ve got this thing together, actually bringing the ecosystem to life and bringing like-minded investors together,” Vishwanathan said.
Vishwanathan noted that the alliance will focus on early-stage startups from seeds to Series B, and turn to late-stage investment. He also said that a commitment of over a billion dollars is just the beginning because “any long journey begins with the first step.”
“You might expect more companies to join the alliance, including financial venture capital firms and private equity firms,” he said. “You should also expect companies to join companies with fairly important investment plans.”
While the alliance did not set its own eligibility criteria for new members, Vishwanathan said participants must meet the requirements of the Indian government under the RDI scheme, including investment “Sunrise” departmentsupport startups in India and ensure approval from local regulators.
“The alliance is just a platform to interact with the government,” he told TechCrunch.
Vishwanathan said that as a group, investors in the alliance program have been linked to the Indian government’s policies and incentives to promote the interests of private enterprises and act as a unified voice.
In the past, regulatory changes without industry investment have been underway Causes turmoil In India. Some of these actions have attracted strong criticism from American investors, and Then withdraw After widespread anger.
The company said members of the alliance will voluntarily share information and coordinate pipeline development, due diligence and co-investment opportunities.
The Advisory Committee, composed of representatives of joining, Premji Invest and Venture Catalysts, helps to establish common goals and ensure coordination among early participants, while retaining the independence of each fund.
Kumar said that despite being the inaugural chairman, the leadership of the alliance will spin as it goes.
The alliance can prove the double-edged sword of dark tech startups in India. While gathering long-term capital and sending a unified voice to the government seems to be a boon, promising companies are trapped in the gap if coordination falters.
“In the next decade, startups will build in India and export breakthrough solutions to the world. The headwind is in place: ambition, talent, policy, policy intention and patience capital,” Accel partner Anand Daniel said in a prepared statement.
