A grand game of reshaping the global technology landscape is quietly unfolding on the Indian subcontinent. When India's commerce minister previously faced backlash over remarks that domestic startups "focused only on food delivery and not innovation," the capital market responded in the most direct way — eight prominent U.S. and Indian venture capital firms have formed an unprecedented India Deep Tech Investment Alliance, pledging to invest over $1 billion over the next decade to nurture genuine tech unicorns on Indian soil.
The organization, named "India Deep Tech Investment Alliance," brings together legendary forces in the venture capital world: Accel, Blume Ventures, Celesta Capital, Premji Invest, and six other heavyweight institutions. This formal alliance is extremely rare in the venture capital circle — investors are typically competitors and rarely form formal alliances under binding commitments. Most cross-border collaborations are informal, carried out through individual fund strategies rather than coordinated capital groups.
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The establishment of the alliance came at a meaningful time. In April, India's Commerce Minister Piyush Goyal criticized domestic startups for focusing on food delivery rather than innovation in a report titled "India vs China: A Reality Check for Startups," comparing them with Chinese companies. His comments immediately sparked strong backlash from the industry. Several investors and founders countered that India lacks capital for deep tech venture investments, and Goyal's comments ignored the determination of local entrepreneurs striving for their home market. The formation of this new alliance is clearly a direct response to these concerns.
The alliance's ambitions align with the Indian government's grand plan. In its recent national budget, the Indian government announced a 1 trillion rupee (approximately 11 billion USD) research and innovation program aimed at promoting deep tech R&D. The alliance members plan to leverage this policy advantage and invest private capital into deep tech startups registered in India over the next five to ten years.
Currently, the number of qualifying companies is relatively small, as many well-known Indian-founded deep tech companies are registered in the United States. However, New Delhi has made local registration a prerequisite for accessing the incentives of the new R&D innovation program, which is precisely the opportunity the alliance members hope to exploit.
"This aligns with the strategic interests of India and the United States at the government level, focusing on key and emerging technologies," said Arun Kumar, managing partner of Celesta Capital, who will soon become the first chairman of the alliance, in an interview.
The alliance's geopolitical background is complex. In February, President Trump and Prime Minister Modi launched the TRUST (Transforming Strategic Technology Relationships) initiative to deepen U.S.-India technological ties. But tensions quickly emerged, as Trump recently imposed a 50% tariff on Indian goods due to New Delhi's continued purchase of Russian oil, analysts say this move placed the two leaders on opposite sides amid growing trade and geopolitical rifts.
Despite these tensions, the alliance still sees potential in India as a hub for startups in foundational technologies such as AI, semiconductors, space, quantum, robotics, biotechnology, energy, and climate technology.
"We find India a particularly interesting market, not only because there are opportunities in newly established companies in India, but also because American companies seeking to expand into the Indian market," said Sridhar Vishwanathan, founding managing partner of Celesta Capital, to TechCrunch.
Celesta Capital is an early supporter of Indian startups such as Agnikul, a space technology company, IdeaForge, a drone manufacturer, and OneCell Diagnostics, an AI-driven cancer diagnostic company. It led this initiative after discussions with industry stakeholders and the Indian government.
"We formed this alliance to truly energize the ecosystem and bring together like-minded investors," Vishwanathan said.
The alliance will focus on early-stage startups from seed to Series B, while avoiding later-stage investments. Vishwanathan noted that the $1 billion commitment is just the beginning, saying, "Any long journey starts with one step."
"You can expect more companies to join this alliance, including financial VCs and private equity firms," he said. "You should also expect major investment projects to join."
Although the alliance itself does not set specific criteria for new members, Vishwanathan stated that participants must meet the conditions of the Indian government's R&D innovation program — including investing in "emerging" industries, supporting startups registered in India, and obtaining local regulatory approval.
As a whole, the alliance investors plan to engage with the Indian government on policies and incentives, advance private industry interests, and speak with a unified voice. In the past, regulatory changes introduced without industry input caused turbulence in India, and some of these measures were later withdrawn after widespread anger.
Alliance members will voluntarily share information and coordinate on project development, due diligence, and joint investment opportunities. A steering committee composed of representatives from early participants such as Accel, Premji Invest, and Venture Catalysts will help establish common goals and ensure coordination, while maintaining the independence of each fund.
Kumar said that although he will be the first chairman, the leadership of the alliance will rotate as it develops.
This alliance may be a double-edged sword for India's deep tech startups. While gathering long-term capital and sending a unified message to the government seems like a blessing, if coordination fails, promising companies could fall into gaps, which is also a risk.
"In the next decade, startups will build breakthrough solutions in India and export them to the world. Favorable factors are in place: ambition, talent, policy intent, and patient capital," said Anand Daniel, partner at Accel, in a prepared statement.
