New Delhi: Global chipmaker Nvidia has joined hands with a group of Indian and US investors to support India’s fast-growing deep-tech ecosystem, as the India Deep Tech Alliance announced over $850 million in new capital commitments on Wednesday. The alliance, which was launched in September with an initial $1 billion fund, aims to back startups working in cutting-edge sectors such as semiconductors, artificial intelligence (AI), robotics, and space technology.
The latest round of commitments adds major players like Qualcomm Ventures, Activate AI, InfoEdge Ventures, Chirate Ventures, and Kalaari Capital to the investor group. As a founding member and strategic advisor, Nvidia will play a key role by offering technical guidance, training, and policy inputs to help Indian startups integrate its AI and computing tools into their products and research.
The move is seen as a significant step toward addressing the funding challenges faced by India’s deep-tech startups, which often struggle to attract venture capital due to their long research timelines and uncertain profitability. Unlike consumer-focused startups, deep-tech ventures require sustained investment and patience to turn innovations into commercially viable products.
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The new funding push comes just days after the Indian government announced a $12 billion initiative to boost research and development in high-tech sectors. The move reflects India’s growing ambition to transition from a services-driven economy to a manufacturing and innovation hub.
According to data from industry body Nasscom, India’s deep-tech startups raised about $1.6 billion in 2023, a 78 per cent increase from the previous year.
However, this still represents only one-fifth of the total $7.4 billion raised by startups across sectors, showing a wide gap in funding compared to other areas.
Earlier this year, an Indian minister urged startups to follow China’s example by focusing more on advanced technologies rather than everyday consumer services like grocery delivery.
While the remarks drew criticism from some entrepreneurs, the latest initiatives by both the government and global investors signal a growing shift in India’s startup landscape toward long-term innovation and high-end technology.
