India's Deeptech Ecosystem Expands Rapidly

In 2023, India's deeptech ecosystem witnessed the addition of over 480 new startups, doubling the previous year's figures. This growth spans across AI, spacetech, advanced manufacturing, and semiconductor design, bringing the total number of ventures close to 4,000.

Funding Surge in 2024

The sector experienced a remarkable 78% increase in funding in 2024, driven by supportive government policies, rapid advancements in generative AI, and breakthrough innovations. A report by Nasscom and Zinnov highlights that the top 10 funding rounds accounted for about $600 million of the total $1.6 billion invested.

Challenges and Opportunities

Despite the funding boom, founders and investors caution that India must mature its ecosystem beyond early-stage support to sustain momentum. Challenges include the need for robust demand, capital continuity, and meaningful exit pathways. Kaushik Mudda, cofounder of Ethereal Machines, emphasizes the importance of aligning with the right venture capital funds to ensure wise use of investments.

The Road Ahead

The lack of a domestic market depth presents a significant bottleneck, pushing startups to look towards global markets. Saurabh Chandra, founder of Ati Motors, shares insights on navigating these challenges while capitalizing on the sector's growth potential.