India’s Deeptech Sector Attracts $11.4B in PE/VC Funding

India’s burgeoning deeptech sector has attracted a staggering $11.4 billion in private equity and venture capital investments between 2015 and 2026 year-to-date.

This substantial capital inflow, highlighted by a new report from the Indian Venture and Alternate Capital Association (IVCA), underscores a significant global pivot towards deep technologies.

Investment Momentum Surges

The year 2025 marked a particularly strong period for deeptech funding, even as the broader startup investment landscape experienced a slowdown.

• Capital was heavily directed towards Artificial Intelligence (AI), generative AI, electric vehicles (EVs), and battery technologies.
• Semiconductors and spacetech emerged as the fastest-growing segments within the deeptech ecosystem.

Rajat Tandon, President of IVCA, emphasized the deeptech ecosystem’s evolution, noting its transition from a promising stage to one actively securing substantial investment commitments.

Fostering Growth and Addressing Gaps

To cultivate globally competitive deeptech companies, several critical steps are required.

• Bridging the Series B and Series C funding gaps is essential for scale.
• Boosting domestic limited partner (LP) participation and enhancing exit opportunities remain key priorities.
• A strengthened policy framework is also crucial for sustained growth.

Geographic Hotspots and Focus Areas

Geographically, Bengaluru continues its dominance as India’s primary deeptech investment hub, accounting for roughly half of all deals and funding over the past decade.

• Emerging centers like Ahmedabad, Kochi, and Kolkata are increasingly attracting deeptech-related activities.
• Most surveyed funds have actively invested in deeptech, with AI, generative AI, and Software-as-a-Service (SaaS) being the most popular areas, followed by spacetech and defense.