Nvidia, Qualcomm Invest in Indian Deep Tech Startups

India's Deep Tech Sector Gains Momentum with New Investment Coalition

Nvidia and Qualcomm Ventures are now part of a growing group of investors from the U.S. and India, providing support for India’s burgeoning deep tech startup landscape. This initiative, unveiled in September, has already secured commitments exceeding $1 billion, coinciding with India’s ambitious ₹1 trillion (approximately $12 billion) investment in research and development.

Strategic Partnerships and Financial Commitments

Nvidia is contributing to the coalition as a strategic technical advisor, offering expertise without direct financial investment. Qualcomm Ventures, alongside six Indian venture firms, is bolstering the effort with additional capital commitments totaling over $850 million.

India's Evolving Startup Ecosystem

India currently boasts a vibrant startup ecosystem of over 180,000 companies, including more than 120 unicorns. Initially, many of these businesses mirrored Western models. However, the focus is now shifting towards ventures addressing complex, large-scale challenges, such as satellite launches, transportation electrification, and semiconductor design.

Government Support and the Need for Capital

The Indian government is actively promoting this transition as global competition for technological independence intensifies. Despite this support, securing capital for these ambitious projects remains difficult. These ventures typically require extended development timelines, and many venture capitalists prioritize less risky, established business models.

The India Deep Tech Alliance (IDTA)

To address this funding gap, Celesta Capital launched the India Deep Tech Alliance (IDTA) in September. The IDTA unites seven prominent U.S. and Indian investors: Accel, Blume Ventures, Premji Invest, Gaja Capital, Ideaspring Capital, Tenacity Ventures, and Venture Catalysts. The coalition has now expanded to include Activate AI, Chiratae Ventures, InfoEdge Ventures, Kalaari Capital, Singularity Holdings, and YourNest Venture Capital.

Investment Focus and Government Collaboration

Over the next 5 to 10 years, the coalition intends to invest capital, offer mentorship, and facilitate networking opportunities for Indian deep tech startups. Furthermore, they plan to collaborate with the Indian government on policy initiatives, including the recently launched Research, Development and Innovation (RDI) scheme.

A Coalition Driven by Shared Vision

“This is a coalition of those willing to champion the growth of the Indian deep tech ecosystem,” stated Sriram Viswanathan, founding managing partner of Celesta Capital and a founding executive council member of the IDTA.

The ₹1 Trillion RDI Scheme

The ₹1 trillion RDI scheme, approved by the Indian cabinet and introduced by Prime Minister Narendra Modi, will allocate funds to projects in crucial areas like energy security, quantum computing, robotics, space technology, biotechnology, and artificial intelligence. Funding will be provided through long-term loans, equity investments, and allocations to deep tech funds of funds. Participating venture firms aim to utilize this initiative to support Indian deep tech companies.

A Turning Point for Indian Entrepreneurship

Viswanathan emphasized, “This represents a pivotal moment where government action will stimulate the creation and development of numerous deep tech companies, supported by a network of Indian VCs dedicated to fostering this ecosystem.” He believes a significant shift is occurring within the Indian entrepreneurial landscape, favoring deep tech innovation.

Nvidia's Technical Guidance

The alliance has enlisted Nvidia to provide strategic and technical guidance to members and emerging startups. The company, experiencing substantial growth due to the global AI boom, will share best practices for integrating Nvidia’s AI and accelerated computing platforms.

Sharing Expertise and Resources

Nvidia will also offer technical workshops and training through the Nvidia Deep Learning Institute and contribute to discussions between industry and government to enhance India’s deep tech capabilities. While not providing financial investment, Vishal Dhupar, Nvidia’s managing director for South Asia, confirmed the company will share technical insights and scalable computing resources.

Validation of the Indian Ecosystem

Viswanathan noted, “Nvidia’s involvement is a strong endorsement of the ecosystem and validates our shared goal of unlocking India’s potential for growth in this sector.”

Qualcomm Ventures' Investment and Network

Unlike Nvidia, Qualcomm is joining the alliance with a direct investment strategy. The company first invested in India in 2008, with early successes including MapmyIndia, which became a public company in 2021, and IdeaForge, a publicly listed drone manufacturer since 2023.

Expanding Beyond Capital

Rama Bethmangalkar, India managing director at Qualcomm Ventures, explained that the firm’s participation will extend beyond financial contributions. They plan to connect startups with their portfolio companies, partner networks, and internal teams at Qualcomm.

The Importance of Alignment and Collaboration

Bethmangalkar stated, “Alignment among like-minded investors, combined with collaboration with the government on areas like quantum computing, semiconductors, AI, and emerging technologies, is crucial for success.”

Challenges and Future Outlook

Despite the positive momentum, the success of the IDTA remains to be determined. Viswanathan described it as a “flexible coalition of willing participants,” emphasizing that investors will continue to operate their own programs.

Collaboration and Deal Flow

“We are working together to exchange knowledge and potential investment opportunities,” Viswanathan explained, noting the progress made since the alliance’s launch in September.

Capital Commitment Details

The exact amount of capital each participant will contribute remains unspecified. “We are collectively estimating the total commitment to this ecosystem,” Viswanathan said. “This alliance is not a fund; there is no obligation to invest in any particular deal. If Rama identifies a promising opportunity, he will pursue it and may involve other investors if appropriate.”

Growth in Deep Tech Funding

According to a report by Nasscom and Zinnov, India’s deep tech funding increased by 78% year-over-year to $1.6 billion in 2024. While this growth is encouraging, it still lags behind funding levels in more developed markets, particularly the U.S.

Attracting Global Investment

The alliance is expected to attract greater global attention – and consequently, more investors and corporate venture funds – to India’s startup ecosystem.

The Need for Role Models

Bethmangalkar concluded, “We need success stories to inspire others. Entrepreneurs will gain confidence with access to capital, and within ten years, we anticipate seeing these companies listed on major stock exchanges as science- and technology-driven firms.”