India’s deep tech funding is set to reach over $5 billion on an average in just five years, said Ravi Jain, investment director of venture capital firm TDK Ventures, while releasing a report on the outlook of the country’s deeptech industry.
“Over the last few years, the investment in the deeptech sector in India has been approximately $1.5 billion, on average,” said Jain. “We believe that this should be over $5 billion in just five years time.”
TDK Ventures, a subsidiary of TDK Corporation, in partnership with early-stage investing firm Kae Capital, released the report, titled ‘Deeptech India 2025: Mapping the next Frontier’, on Thursday. The study conducted a survey of 100 deeptech founders across the country.
Deeptech startups are those that are built on breakthroughs in science, technology and engineering, including breakthroughs in semiconductors, quantum systems, advanced materials, and spacetech. However, due to longer gestation periods and fewer examples of successful exits in such startups, raising funds is not easy.
Of the 100 respondents, 53% said capital remains difficult to access, 43% said it's reasonably available and just 3% said it is abundant. Despite the high number of founders saying that capital is difficult to access, 58% of the founders expressed confidence in raising capital in their next round, according to the report.
“Deeptech founders in India are tackling problems that demand long-term commitment, significant technical depth, and a strong ecosystem to lean on. This report with TDK Ventures shines a light on the opportunities as well as the gaps that remain,” said Abhishek Srivastava, general partner, Kae Capital.
According to 45% of the founders, lack of investor understanding is a key reason for the lack of funding in the sector, besides the long gestation period, value mismatch and limited depth of local venture capital.
The sector seems to be gaining momentum. In 2024, Indian deeptech startups raised $1.3 billion, a 78% year-on-year surge, according to the report. Further, it said that sectors such as energy tech & transition, robotics & automation, B2C deeptech, agritech, spacetech, advanced material and more, will come up more.
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“Over the last few years, the investment in the deeptech sector in India has been approximately $1.5 billion, on average,” said Jain. “We believe that this should be over $5 billion in just five years time.”
TDK Ventures, a subsidiary of TDK Corporation, in partnership with early-stage investing firm Kae Capital, released the report, titled ‘Deeptech India 2025: Mapping the next Frontier’, on Thursday. The study conducted a survey of 100 deeptech founders across the country.
Deeptech startups are those that are built on breakthroughs in science, technology and engineering, including breakthroughs in semiconductors, quantum systems, advanced materials, and spacetech. However, due to longer gestation periods and fewer examples of successful exits in such startups, raising funds is not easy.
Of the 100 respondents, 53% said capital remains difficult to access, 43% said it's reasonably available and just 3% said it is abundant. Despite the high number of founders saying that capital is difficult to access, 58% of the founders expressed confidence in raising capital in their next round, according to the report.
“Deeptech founders in India are tackling problems that demand long-term commitment, significant technical depth, and a strong ecosystem to lean on. This report with TDK Ventures shines a light on the opportunities as well as the gaps that remain,” said Abhishek Srivastava, general partner, Kae Capital.
According to 45% of the founders, lack of investor understanding is a key reason for the lack of funding in the sector, besides the long gestation period, value mismatch and limited depth of local venture capital.
The sector seems to be gaining momentum. In 2024, Indian deeptech startups raised $1.3 billion, a 78% year-on-year surge, according to the report. Further, it said that sectors such as energy tech & transition, robotics & automation, B2C deeptech, agritech, spacetech, advanced material and more, will come up more.
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