India's deeptech fund: innovation and investment.
Celesta Capital is set to launch an India-focused deeptech fund with a target corpus of ₹2,000 Cr, according to sources familiar with the matter. The venture capital firm has reportedly initiated discussions with limited partners to secure capital for the Category II Alternative Investment Fund (AIF), which has already received approval from the Securities and Exchange Board of India (SEBI).
The fund will focus on early-stage deeptech startups, primarily at the Series A and B stages, with an average ticket size ranging from $3 million to $7 million. Celesta Capital, based in San Francisco, has investments across the U.S., Israel, the UK, India, and China. Its India portfolio includes companies such as ideaForge, Agnikul, 5C Network, Brick&Bolt, and Pixis.
Celesta Capital claims to have made over 100 investments to date, managing assets worth $1.1 billion. The firm is also a member of the India Deep Tech Alliance (IDTA), established in September 2025, with the goal of investing over $1 billion in India’s deeptech startups over the next decade. Other members of the IDTA include Accel, Blume Ventures, Gaja Capital, Ideaspring Capital, Premji Invest, Tenacity Ventures, and Venture Catalysts.
Sriram Viswanathan, founding managing partner at Celesta Capital, stated at the launch of the alliance that each member would invest in the Indian deeptech segment over the next 5-10 years across sectors such as semiconductors, spacetech, quantum computing, robotics, AI, biotech, medical devices, energy, and climate.
India’s deeptech sector has seen increased investor interest, driven by government initiatives to promote R&D and self-reliance. Recent government measures include a revised definition of startups, extending recognition and benefits to deeptech entities for up to 20 years, and raising the turnover threshold to ₹300 Cr for eligibility in various schemes and incentives.
The Union Budget 2026-27 introduced India Semiconductor Mission (ISM) 2.0 to boost domestic equipment and materials production, design full-stack Indian IP, and strengthen supply chains. As a result, the number of funding deals in the deeptech sector rose to 87 in 2025, up from 76 in 2024. VC firms like Speciale Invest, 888VC, Riceberg Ventures, and Chiratae Ventures have also launched new funds to invest in deeptech startups.
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