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Economic Times
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Deeptech VCs spot big funding momentum on government, geopolitical push
- Indian deeptech funds like Speciale Invest, Ideaspring, and Mela Ventures are raising fresh funds to increase investments due to government support, favorable geopolitical climate, and rapid tech progress.
- Java Capital plans to raise its fund size from Rs 50 crore to Rs 250 crore, Bharat Innovation Fund is seeking to raise $150 million for its second fund, Navam Capital is raising a $30 million maiden fund.
- Speciale Invest closed its third fund, Ideaspring Capital and Mela Ventures are raising their third and second funds, respectively.
- Ideaspring Capital anticipates exceeding the Rs 265 crore raised for its second fund, while Mela Ventures raised Rs 320 crore in its first fund.
- Indian deeptech ecosystem is thriving with startups in AI, spacetech, semiconductors, and climate tech sectors, intensifying competition for early-stage deals.
- Investments in deeptech in India doubled to $324 million in the first four months of 2025 across 35 deals compared to $156 million from 21 deals in the same period last year.
- Startups in sectors like aerospace, semiconductors, robotics and climate tech continue to receive funding support, signaling growth in the ecosystem.
- Challenges in fundraising for deeptech include the longer gestation period and fewer successful exits, hindering growth stage funding for startups.
- Breakout deeptech companies are yet to emerge in India, impacting the flow of capital into the ecosystem.
- Negative sentiments are present due to the downfall of celebrated startups like GoMechanic and Byju's, with investors focusing on returns rather than valuations.
- While early stage capital is available, growth stage funding remains a challenge for deeptech startups, signaling a need for more financial support in the ecosystem.
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