City
Epaper

Top US and Indian investors form $1 billion alliance to back India’s deep tech startups

By IANS | Updated: September 2, 2025 13:15 IST

New Delhi, Sep 2 Eight leading US and Indian venture capital and private equity firms came together on ...

Open in App

New Delhi, Sep 2 Eight leading US and Indian venture capital and private equity firms came together on Tuesday to create $1 billion alliance over the next decade to support Indian deep tech startups.

The group ‘India Deep Tech Investment Alliance’, includes Accel, Blume Ventures, Celesta Capital, Gaja Capital, Ideaspring Capital, Premji Invest, Tenacity Ventures, and Venture Catalysts, according to TechCrunch report.

Announcing the launch of the alliance, they said that their goal is to channel long-term private capital into advanced technology ventures while strengthening US-India technology ties.

Deep tech startups in India have long struggled to raise capital, with most investors focusing instead on consumer internet and delivery businesses. The new alliance aims to address that funding gap.

What makes the move unusual is that investors, who normally compete for deals, are formally joining forces under one umbrella with a shared commitment.

Each firm will invest private capital over a five- to ten-year period, focusing on Indian-domiciled deep tech startups to align with the government’s new Research, Development, and Innovation (RDI) scheme, which offers incentives only to locally incorporated companies, as per the report.

Alongside funding, the alliance members will also provide mentorship, networking, and support to help startups expand globally and into the Indian market.

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 US, focusing on critical and emerging technologies,” Kumar was quoted by TechCrunch.

The alliance comes at a time when geopolitical tensions between India and the US are running high.

Despite the launch of the TRUST (Transforming the Relationship Utilising Strategic Technology) initiative earlier this year, relations have been strained by President Donald Trump’s decision to impose a 50 per cent tariff on Indian goods.

Even so, investors believe India remains a promising hub for foundational technologies such as semiconductors, AI, space, quantum computing, robotics, biotech, and climate tech.

Celesta Capital, an early investor in Indian startups such as space-tech venture Agnikul and drone maker IdeaForge, spearheaded the effort after consultations with the government and industry.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

Open in App

Related Stories

National‘My loyalty is to conscience’: Aga Ruhullah to NC candidate

NationalUnion Minister Jual Oram confident of NDA's victory in Bihar elections

NationalDiwali : 89 injured in firecracker accidents in TN, says Health Minister

InternationalDiwali has been part of my journey in India: UAE Envoy

MumbaiDiwali 2025: Shoppers Throng Dadar and Crawford Market for Last-Minute Festive Purchases

Business Realted Stories

BusinessClinicians at Fortis' S.L. Raheja Hospital Successfully Perform 1st Bone Marrow Transplant, Marking a Major Milestone in Advanced Cancer Care

BusinessMaldives: Keralaites hit by fresh dollar remittance restrictions

BusinessRyan Group of Schools celebrates success at Dream Dash 2025 Grand Finale as students compete and meet sprint legend Usain Bolt in Mumbai and Delhi

BusinessBank Nifty hits record high on strong Q2 show by private lenders

BusinessGST reforms to raise organised apparel revenues by 200 bps: Report