NVIDIA and Qualcomm Collaborate with VCs to Boost India's Deep Tech Startups

NVIDIA and Qualcomm Ventures have become part of a growing coalition of investors from the United States and India, dedicated to fostering deep tech startups in India. This alliance, which commenced in September, has garnered over $1 billion in commitments, coinciding with India's new ₹1 trillion (approximately $12 billion) research and development initiative aimed at enhancing the country's technological capabilities.

NVIDIA, while joining as a strategic technical advisor, has not made any financial commitments. In contrast, Qualcomm Ventures has partnered with six Indian venture capital firms, contributing an additional capital commitment exceeding $850 million.

India currently boasts more than 180,000 startups and over 120 unicorns—companies valued at over $1 billion. Initially, many of these startups mirrored Western business models, primarily focusing on software as a service (SaaS). Over recent years, however, there has been a noticeable shift toward addressing more complex, infrastructure-level challenges, such as satellite launches, electric transportation, and semiconductor design. The Indian government aims to expedite this transition as global economies compete for technological independence. However, funding for these ventures remains limited, as they typically require longer development periods than traditional sectors, making them less appealing to many venture capitalists who prefer lower-risk investments.

In September, Celesta Capital, based in Silicon Valley and India, led the formation of the India Deep Tech Alliance (IDTA) to address this funding gap. This coalition includes seven prominent U.S. and Indian investors: Accel, Blume Ventures, Premji Invest, Gaja Capital, Ideaspring Capital, Tenacity Ventures, and Venture Catalysts. New additions include several Indian venture firms such as Activate AI, Chiratae Ventures, InfoEdge Ventures, Kalaari Capital, Singularity Holdings, and YourNest Venture Capital.

The primary objective of the coalition is to invest capital and provide mentorship, as well as access to networks for Indian deep tech startups, over the next five to ten years. The IDTA also intends to collaborate with the Indian government on relevant policy initiatives, including the recently launched Research, Development, and Innovation (RDI) scheme.

Sriram Viswanathan, founding managing partner of Celesta Capital and executive council member of the IDTA, expressed the coalition's vision, stating, "It’s a coalition of the willing, wanting to support the development of the Indian deep tech ecosystem."

The RDI scheme, approved by the Indian government earlier this year and introduced by Prime Minister Narendra Modi, aims to finance projects in various fields, including 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. The participating venture firms are expected to leverage this initiative to support Indian deep tech startups based domestically.

Viswanathan remarked on the significance of this moment, stating, "This is, in a way, the most seminal moment where the Indian government’s action will drive creation and the formation of many of these deep tech companies and will be supported by a number of VCs in India that are really looking at developing this ecosystem."

NVIDIA's role will involve offering strategic and technical guidance to both the coalition members and the startups. The American chip manufacturer, whose market valuation has risen significantly amid the global artificial intelligence surge, will advise on best practices for incorporating NVIDIA’s AI and accelerated computing platforms, provide technical training through the NVIDIA Deep Learning Institute, and participate in policy discussions aimed at advancing India’s deep tech capabilities.

Despite not contributing financially, Vishal Dhupar, NVIDIA’s managing director for South Asia, indicated that the company would share technical knowledge and scalable computing resources with the startups involved in the coalition.

Rama Bethmangalkar, India managing director at Qualcomm Ventures, noted that Qualcomm’s involvement would extend beyond financial contributions. The firm aims to facilitate connections between startups and its portfolio companies, partner networks, and internal teams.

Bethmangalkar stated, "If you are like-minded and other VCs have allocated certain portions of their resources, dollars, time, and network, it helps each other and then collectively to work with the government. It is very important to be part of that group."

The effectiveness of the IDTA remains to be fully assessed. Viswanathan described the coalition as a "loose coalition of the willing," highlighting that the participating investors continue to manage their own programs while collaborating to share knowledge and deal flow.

The total financial contributions from each coalition member are still being estimated, as Viswanathan explained, "This alliance is not a fund. There’s no obligation, no allocation, if you will, of any deal."

Funding for India’s deep tech sector saw a 78% increase year-on-year, reaching $1.6 billion in 2024, according to a report from the IT industry body Nasscom and consulting firm Zinnov released in April. Even with this promising growth, the capital raised is still significantly lower than that in more developed markets, particularly the United States.

The IDTA is anticipated to enhance this figure and attract greater global attention and investment into India’s startup ecosystem. Bethmangalkar remarked, "What we need are role models to begin with. People are going to jump in. Entrepreneurs are going to get the confidence capital… In ten years, you’ll start seeing these as the companies listed on the main boards of our exchanges — deeply science- and tech-oriented firms."