Scarcity to surplus: India’s deeptech finds momentum as capital flows in
A panel discussion at the Tamil Nadu Global Startup Summit 2025, consisting of deeptech investors, highlighted that there is no dearth of capital for deeptech startups today.
Venture capital investors are no longer struggling for capital. Instead, these firms face a new challenge—finding the right ventures, especially when it comes to the deeptech ecosystem. This was the resounding message at a panel discussion at the Tamil Nadu Global Startup Summit 2025 in Coimbatore.
The panel discussion around the topic ”DeepTech 2030: Investing in the Next Decade of Disruptive Innovation“ brought together Manu Iyer, Co-founder and General Partner at Bluehill Capital, Palepu Sudhir Rao, Senior Partner at Celesta Capital, Anil Joshi, Managing Partner at Unicorn India Ventures, and Ravi Jain, Investment Director at TDK Ventures.
Each of these VC firms has taken big bets in the deeptech space and agreed that India’s deeptech ecosystem is evolving from a funding-starved space to one brimming with opportunity.
“There are a lot of investors in the ecosystem today. The challenge is no longer finding capital, but finding the right ventures,” Joshi said. Yet, nearly 85% of venture funding still comes from overseas, Joshi observed, pointing out that there is a growing need for patient domestic capital, especially in sectors like advanced manufacturing, space, and semiconductors.
Talent remains a sticky point. The panel noted that while talent has never been an issue in India, the country lacks the kind of engineering resources the development in deeptech demands, be it experts in material science, fluid mechanics, or electronics. The panel noted that there is an opportunity for universities to build stronger industry linkages.
IIT Madras’ achievement in developing the world’s first 3D-printed rocket engine was cited as a testament to India’s scientific potential. “A team with an average age of 23, mentored by ex-ISRO scientists, made it possible,” Rao said, underscoring the power of intergenerational collaboration.
Failure, too, emerged as a key theme. “Fail, fail, fail if you want to scale,” Rao said, calling for an ecosystem that rewards resilience and experimentation.
The speakers also credited government policies for catalysing this momentum. However, the panel also urged Indian conglomerates to increase investments through corporate venture capital, following models like TDK Ventures, which co-develops technologies and becomes an early customer for startups.
Edited by Affirunisa Kankudti