Nvidia and Qualcomm Partner with US and Indian VCs to Fuel the Growth of India’s Next Deep Tech Startups
Nvidia and Qualcomm Ventures are stepping into a transformative landscape, showing their commitment to India’s deep tech startups through a newly formed coalition of investors. Launched in September, this initiative has already garnered over $1 billion in commitments, a strategic move that aligns perfectly with India’s ambitious ₹1 trillion (approximately $12 billion) research and development initiative.
Strategic Alliances in Deep Tech
Nvidia enters this coalition not as a financial backer but as a strategic technical advisor, while Qualcomm Ventures enhances its involvement alongside six prominent Indian venture firms, contributing over $850 million in additional capital. This collaboration aims to unlock unprecedented opportunities in a country that boasts more than 180,000 startups and over 120 unicorns.
The Shift Towards Infrastructure
India’s entrepreneurial landscape has evolved dramatically. Initially mirroring Western business models, the focus has now shifted to tackling more complex infrastructure challenges. Startups are now innovating in:
- Satellite technology
- Electrification of transportation
- Semiconductor design
This evolution coincides with a growing need for technological autonomy as countries race to secure their tech landscapes. However, the capital required for these groundbreaking ventures remains limited; investors often gravitate towards lower-risk, proven models.
Bridging the Gap with the IDTA
Recognizing this challenge, Celesta Capital, with roots in Silicon Valley and India, spearheaded the launch of the India Deep Tech Alliance (IDTA) in September. This alliance unites seven major venture capital firms, including Accel and Blume Ventures, and aims to foster collaboration among investors. New entrants like Activate AI, Chiratae Ventures, and YourNest Venture Capital have also joined the initiative.
The primary goal of the alliance is to invest not only money but also provide essential mentorship and network resources to emerging Indian deep tech startups over the next five to ten years. Additionally, it will offer guidance on policy initiatives spearheaded by the Indian government, including the recently unveiled Research, Development, and Innovation (RDI) scheme.
Fostering Ecosystem Growth
Sriram Viswanathan, founding managing partner of Celesta Capital, expressed enthusiasm about the coalition: “It’s a coalition of the willing, wanting to support the development of the Indian deep tech ecosystem.” This sentiment echoes through the aspirations of many in the industry, particularly with the government’s backing.
The ₹1 trillion RDI scheme is set to fund projects in key areas such as:
- Energy security
- Quantum computing
- Biotech and AI
By leveraging this initiative, venture firms are poised to make significant investments in Indian-domiciled deep tech startups.
Nvidia and Qualcomm’s Unique Contributions
While Nvidia won’t be making direct financial contributions, it brings invaluable technical expertise to the table. Its participation underscores its belief in the potential of India’s tech ecosystem. Nvidia plans to share essential insights and computing resources, fostering a robust support system for startups.
On the other hand, Qualcomm Ventures aims for a multifaceted approach. Beyond just investment, it seeks to connect startups with its extensive portfolio of companies and industry networks. “Being part of this group allows us to align efforts with the government on pivotal technologies like quantum and semiconductors,” noted Rama Bethmangalkar, Qualcomm’s managing director for India.
Challenges and Opportunities Ahead
Despite the coalition’s promising start, its success still hinges on commitment from individual members. Describing it as a “loose coalition of the willing,” Viswanathan emphasized collaborative efforts around knowledge sharing and deal flow.
Looking to the Future
India’s deep tech funding saw a remarkable 78% year-over-year increase, reaching $1.6 billion in 2024, according to a report by Nasscom and Zinnov. However, this figure is still dwarfed by the capital available in developed markets like the U.S.
The IDTA’s emergence could not only boost these numbers but also attract global interest in India’s startup ecosystem. As Bethmangalkar aptly stated, “What we need are role models to begin with.” He envisions a future where Indian deep tech companies will stand proud, ready to list on major exchanges—a transformation just waiting to unfold.
Your Role in This Evolution
As we watch this exciting chapter in India’s tech journey, consider how you can be a part of this transformative landscape. Whether you’re an investor, an entrepreneur, or simply someone passionate about technology, your engagement could drive the next wave of innovation. Join us in embracing this moment—together, we can cultivate a future brimming with potential.
