NVIDIA, Qualcomm join U.S., Indian VCs to help build India’s next deep tech startups

NVIDIA and Qualcomm Ventures are joining forces with a coalition of U.S. and Indian investors to support the burgeoning deep tech startup scene in India. This initiative, which kicked off in September, boasts over $1 billion in commitments and aligns with India's ambitious ₹1 trillion (approximately $12 billion) research and development program. While NVIDIA steps in as a strategic technical advisor without financial input, Qualcomm Ventures partners with six Indian venture firms, contributing more than $850 million in capital. With over 180,000 startups and 120 unicorns, India’s entrepreneurial landscape has evolved from mirroring Western business models to focusing on complex infrastructure challenges, including satellite launches, electrification of transport, and semiconductor design. To accelerate this transformation, the Indian government aims to enhance technological sovereignty, although funding remains a challenge due to the longer timelines required for deep tech ventures compared to lower-risk sectors preferred by many venture capitalists. In response, Celesta Capital, along with prominent U.S. and Indian investors including Accel and Blume Ventures, launched the India Deep Tech Alliance (IDTA) to bridge the funding gap. The coalition's goal is to invest in and mentor Indian deep tech startups over the next five to ten years, while also collaborating with governmental initiatives such as the newly introduced Research, Development and Innovation (RDI) scheme. This scheme, approved earlier this year, focuses on funding projects in energy security, quantum computing, robotics, space technology, biotechnology, and artificial intelligence through various financial methods. Sriram Viswanathan, founding managing partner of Celesta Capital, emphasized the significance of this collaboration, stating, “This is a pivotal moment for the Indian deep tech ecosystem.” The inclusion of NVIDIA as a strategic advisor is expected to enhance the capabilities of startups within the alliance. NVIDIA plans to share insights on integrating AI and accelerated computing platforms and engage in policy discussions to strengthen India's technological landscape. Qualcomm, on the other hand, is committed to not just financial support but also facilitating connections between startups and its extensive network of portfolio companies. The participation of Qualcomm Ventures signifies a long-term investment strategy in India's deep tech sector, as highlighted by its history of investments in Indian companies. The success of the IDTA will depend on how effectively these investors can collaborate while maintaining their independent operations. As Viswanathan notes, this initiative is more about sharing knowledge and deal flow than establishing a rigid fund structure. Despite the promising rise in deep-tech funding, which saw a 78% increase year-over-year to $1.6 billion in 2024, it still lags behind developed markets like the U.S. In the coming years, this alliance is expected to not only increase funding but also attract more global investors and corporate venture funds to India’s startup ecosystem, potentially leading to the emergence of deep tech companies on major stock exchanges.