DEEPTECH INVESTMENTS
We cheer for IPL sixes, but who’s cheering for science? IITian gives a 'big, Indian' reality check as RCB victory euphoria erupts
India’s IPL has generated over ₹15,000 crore in profits in three years, yet the BCCI pays no income tax due to its charitable status. Experts from IISc argue that taxing these profits could fund ten new IITs and inject nearly ₹6,000 crore annually into scientific research. Currently, India spends less than 1% of its GDP on R&D, lagging far behind global peers. The debate calls for balancing tax breaks on entertainment with urgent investment in India’s future science and innovation.
India’s listed digital firms’ market in early days as ‘reverse flipping’ gains steam: Bay Capital
The white paper noted that publicly listed digital-first companies in India are now valued at over $90 billion. As more businesses turn profitable and scale up, the overall value of India’s digital sector is expected to rise steadily, it added.
VCs flock to Chennai as IIT Madras helps deeptech take root
Chennai is rapidly becoming a deep-tech funding hub, attracting venture capitalists due to the thriving IIT Madras incubation ecosystem. Startups in Chennai have raised over $795 million in 2024 across 95 rounds, with deals closing at very early stages. The success of startups like Agnikul Cosmos and Ather Energy is drawing increased VC attention and frequent visits.
Unacademy founders exit; Ola Electric’s freefall
Happy Wednesday! Unacademy cofounders are planning to exit the edtech firm as the company expands its offline footprint. This and more in today’s ETtech Morning Dispatch.
MeitY forms panel to create national framework for GCCs
The Indian government is actively fostering the growth of Global Capability Centres (GCCs) by establishing an industry-led panel. This initiative aims to create a national framework, as announced in the federal budget, to guide states in promoting GCCs, particularly in tier 2 cities. The committee, comprising industry bodies and advisory firms, will focus on talent availability, infrastructure enhancement, and innovation.
RBI’s new directive to NBFCs; Oyo’s third IPO attempt
The RBI has tightened rules on default loss guarantees (DLGs), a move that is likely to hit digital lenders hard. This and more in today’s ETtech Top 5.
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Frinks AI raises $5.4 million in funding round led by Prime Venture Partners
Frinks AI, a deep-tech startup specialising in vision AI for industrial automation, secured $5.4 million in funding led by Prime Venture Partners, bringing its total funding to $6.25 million. Existing investor Chiratae Ventures and new investors Navam Capital and Zen Technologies founder Ashok Atluri also participated in the funding of the maker of next-gen vision AI systems for industrial automation and quality control. With this, Frinks AI has raised a total of $6.25 million.
Pet food brand Drools turns unicorn after Nestlé SA picks up minority stake
The deal values Drools at over $1 billion, making it India’s third unicorn of 2025. This is Drools’ second major fundraise after L Catterton — the LVMH-backed private equity firm — invested $60 million in June 2023 at a valuation of $600 million.
Titan Capital launches investment vertical to back defence-tech founders
Titan Capital has launched a specialised investment vertical to fund Indian startups innovating in defence and strategic technology, focusing on areas like advanced hardware, aerospace, and cybersecurity. The firm aims to foster deep-tech innovation and help India become a net exporter of strategic technologies.
(AI)ding the frontline
As AI becomes a crucial cog in modern warfare, India has made a quick pivot in defence tech and created indigenous drone capabilities. A case in point is Operation Sindoor. Puran Choudhary writes how it was done, with a little help from Centre.
How to leverage deeptech to bridge the gap between science and industry for future
Deeptech spans AI, quantum computing, biotech, and more, impacting sectors from healthcare to manufacturing. To foster growth, the government should consider a sovereign investment company, thematic venture funds, and deeptech venture studios.
Vijay Sivaram, Rohit Himatsingka team up to launch AI venture
Vijay Sivaram and Rohit Himatsingka have launched RVAI Global, an AI services company focused on simplifying AI adoption for businesses. Offering AI consulting, Agentic AI solutions, and talent services, RVAI aims to drive efficiency and productivity, partnering with global enterprises to set up AI capability centres and centres of excellence.
New York-based Bat VC, cofounded by former X India head, announces $100 million AI-focussed fund
The fund, set up by former Twitter India head Manish Maheshwari, ex-Yahoo executive Aditya Mishra and Ravi Metta, will focus on sectors such as fintech and business-to-business (B2B) software-as-a-service (SaaS).
BluSmart fleet on the block, HCL-Foxconn semicon JV
Lenders and lessors are planning to sell EVs on the BluSmart fleet to recover their dues. This and more in today’s ETtech Morning Dispatch.
Deeptech startups snagged $324 million in first four months of the year
Deeptech investments in India have surged, doubling to $324 million in the first four months of 2025, driven by increased commercial use cases and government initiatives. This rising interest has led to greater competition for deals and higher initial investment amounts.
With the pvt sector indifferent to R&D, India risks missing the deep-tech bus, or getting locked out
China recognized technological dependence as a weakness and invested heavily in R&D. India faces similar challenges now. The government has launched initiatives like ANRF to boost research. However, India's private sector lags behind in R&D spending. Indian firms underperform global peers in innovation output. India risks being left behind in the global innovation race.
Bengaluru professor asks for more focus on research to help India surpass US, China, and Germany
The Indian Premier League generates massive revenue. The author proposes taxing a portion of IPL profits. These funds could boost research and innovation. Currently, research faces taxes while entertainment gets subsidies. The author argues India prioritizes quick returns over long-term investments in science. A shift in priorities is needed. This will build a stronger future for the nation.
Make in India initiative to get boost with Direct-to-Mobile phones
Ahead of WAVES 2025, Free Stream Technologies, Lava International, and HMD are planning to launch Direct-to-Mobile phones. This technology will deliver multimedia content directly to phones without internet. The phones are powered by Tejas Networks chipsets. Lava and HMD are preparing to supply these phones in scale. This initiative aligns with the 'Make in India' vision.
Ola Group holds more than half of patents granted to 117 unicorns
Ola Group, comprising Ola Electric, Ola Cabs and Krutrim, holding over 50% of the total patents granted to 117 unicorns in India. The group filed 650 patent applications, with Ola Electric driving innovation in battery technology, AI, and vehicle software, which founder Bhavish Aggarwal aims to expand.
The Circle FC signs MoU with the Government of Uttar Pradesh to support local startups
The collaboration will focus on providing comprehensive support to startups in Uttar Pradesh for global market expansion
VCs face a reality cheque as NISM exam deadline nears
VC managers question the need for such an exam at this stage in their careers. It has now become a regular topic in boardroom conversations and daily meetings. A deep-tech fund manager, speaking on the condition of anonymity, said he cleared the exam on his second attempt, but some of his peers are still struggling.
Tax vax on non-tech VC funding?
India's startup ecosystem, despite being the third largest globally, disproportionately favors consumer-tech over deep-tech innovation like AI and semiconductors. This imbalance, with over 60% of VC funding directed towards consumer-facing ventures, hinders long-term national competitiveness.
Reliance eyes Flipkart veteran; Small towns seek wealth
Flipkart's former chief product and technology officer is set to join Reliance Retail Ventures as CEO. This and more in today’s
Deeptech imaging startup Optimized Electrotech raises $6 million from Blume Ventures, Mela Ventures, others
The funds will support AI-powered imaging solutions for surveillance and international expansion. Optimized Electrotech serves defence and aerospace clients and aligns with India’s push for self-reliance in strategic technologies. It also plans to strengthen its AI team and accelerate commercialisation.
India fast positioning itself as key player in global semiconductor ecosystem
Under the government's 'Semicon India' programme, a Rs 76,000 crore ($10 billion) incentive package has been launched to boost domestic chip manufacturing, advanced packaging, and semiconductor design. "Coupled with strong participation from industry, over $20 billion in investments have already been committed by IESA member companies and global players across multiple Indian states," said Ashok Chandak, President SEMI IESA.
Peter Thiel’s Founders Fund raises $4.6 billion to back growth-stage startups
Per an SEC filing, the Founders Fund Growth III has 270 investors. Thiel, Napoleon Ta and Trae Stephens are listed as directors. The funds raised will be used to back later-stage startups, with a focus on sectors like AI, defense, and advanced manufacturing.
Startup debate: Food apps meet today's needs, deep-tech will define future, says marketing guru
India must shift focus from consumer-tech to deep-tech sectors like AI, EVs, and semiconductors, says Rajendra Srivastava. Success needs long-term funding, patient capital, and consistent policy—elements China mastered. Building future tech giants demands uncomfortable changes but promises transformative growth for India’s tech and innovation landscape.
Semiconductor founder hits back at Piyush Goyal’s ‘ice cream or chips’ remark
The Reddit post has resonated across the startup community, with many users commenting in support and sharing similar stories of red tape, bureaucratic apathy, and the lack of access to government contracts or ecosystem support for core technology ventures.
Beyond quick delivery: Amid Piyush Goyal’s wake-up call, can reality shows fuel India’s deep-tech startup boom?
India's startup ecosystem is encouraged to shift focus from consumer services to high-tech industries like AI, robotics, and semiconductors. Commerce Minister Piyush Goyal emphasizes the need for deep-tech innovation and long-term strategic investments, suggesting reality shows spotlight such sectors to inspire and support emerging entrepreneurs.
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