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Government picks 19 fund managers to channel ₹7,131 crore into deep tech
The first cohort under the ₹1 lakh crore Research, Development and Innovation Fund will back companies turning lab research into products, as deep-tech funding nearly triples.
Key points
- Secretaries approved 14 investment funds and five research organisations as the first managers.
- Together they hold commitments of ₹7,131 crore from the RDI Fund.
- Deep-tech startups raised $290 million in July-September, up from $105 million a year earlier.
The government has picked its first 19 fund managers under the ₹1 lakh crore Research, Development and Innovation (RDI) Fund, with commitments of ₹7,131 crore meant to flow into Indian companies building products from serious research.
An Empowered Group of Secretaries under the Ministry of Science and Technology approved the cohort earlier this month. It includes 14 alternative investment funds and five focused research organisations, which act as second-level managers and invest the money in companies. The ministry has not yet named them. The group also approved five more technology areas for coverage, without listing them.
How the fund works
The RDI scheme was launched in November 2025 and is run by an independent unit within the Anusandhan National Research Foundation, under the Department of Science and Technology. It backs firms whose technology has reached Technology Readiness Level 4 or above. Each fund manager is expected to raise private capital matching what it receives from the RDI Fund. The government says it will keep inviting applications and onboard more cohorts.
The scheme has faced questions. In August, it was reported that nearly two-thirds of more than ₹2,000 crore allocated to deep-tech companies had gone to firms linked to members of the selection panel.
Money is moving
The announcement comes as investors warm to the sector. Deep-tech startups, which include space, robotics, defence and semiconductor firms, raised $290 million across 28 deals in July-September, up from $105 million across 29 deals a year earlier, according to Inc42’s quarterly funding report. Space technology took about $130 million of that, led by a $100 million round for Pixxel.
Ashwin Raguraman of Bharat Innovation Fund credited much of the rise to the RDI Fund and a wider government push that is making capital available to venture funds. Rajat Tandon, president of the Indian Venture and Alternate Capital Association, has pointed to a gap at the Series B and C stages, where few funds can write the larger cheques those rounds need.