.jpg)
Vandana Tolani,
Founder & CEO,
Convanto,
DeepTech is finally making a splash in India. Driven by entrepreneurs who are frequently more at ease in labs than in boardrooms, the movement has taken years to gain traction. As someone who has advised many startups across countries, I’ve had a ringside view of how DeepTech ventures, often misunderstood, underfunded, and deeply complex, are now emerging as serious contenders for both capital and impact.
India’s DeepTech evolution didn’t follow the pattern seen in Silicon Valley. There, DeepTech often grew out of academia and government defense projects. Here, it is more heterogeneous. Some startups are spinning out of research labs like IISc and IITs, while others are emerging from niche B2B needs in healthcare, automation, and cybersecurity. What binds them is a deep-rooted technological moat, be it AI, robotics, space-tech, or quantum computing, and a hunger to solve core infrastructural or scientific challenges.
Unlike app-based consumer startups, which scaled rapidly with marketing blitzes and shallow tech, DeepTech ventures are forging their paths in quiet, methodical ways. Their roadmaps are longer, their capital requirements higher, and their exits often less glamorous but their impact is exponential.
Strategic fundraising becomes not just necessary, but existential for these companies. DeepTech startups require patient capital, often needing 7-10 years before hitting breakeven or commercialization. This changes the nature of the pitch itself. While a SaaS founder might talk ARR and CAC, a DeepTech founder talks TRL levels (Technology Readiness Levels), IP development timelines, and regulatory pathways. Convincing investors demands a different language.
Over the years, I've seen this play out repeatedly. A robotics startup I advised was struggling to raise funds through traditional VC channels because their revenue projections looked modest on Excel. But when reframed as an automation solution to a global supply chain crisis validated by large industrial clients, the same model became investable. It’s not always about tweaking the story; sometimes it’s about knowing which lens investors are looking through.
In 2024, nearly two-thirds of Indian DeepTech startups are in AI/ML and data science. This segment alone attracted 87% of total DeepTech funding in the first half of the year. And yet, DeepTech is much broader than just generative AI. Take aerospace: ISRO’s reforms and the establishment of IN-SPACe have opened up new commercial possibilities. Satellite communication, earth observation, and even launch vehicle startups are raising capital like never before. Pixxel, GalaxEye, and Skyroot have all made global headlines and attracted global investors.
Healthcare and biotech are another frontier. Companies like Niramai and Tricog are showing how AI can work in diagnostics. India’s massive population makes it an ideal test bed for scalable healthcare tech, especially when AI is paired with low-cost hardware or IoT solutions. Add to this the new bio-manufacturing policy, and we have fertile ground for innovation in biosciences. India’s biotech industry is already valued at over $80 billion and is expected to reach $150 billion by 2025. With over 5,000 biotech startups today, the pace of growth is unmatched.
Cybersecurity and quantum tech, though still in early stages, are gaining traction thanks to national policy. The National Quantum Mission, with an outlay of ₹6,000 crore, aims to position India among the top three nations in quantum technologies. Startups like QNu Labs and QpiAI are experimenting with quantum key distribution and secure enterprise frameworks. This sector will not mature overnight, but we’re planting the seeds now. India aims to develop quantum computers with 1,000 qubits by 2031, an audacious goal, but one that signals strategic intent.
I want to dwell for a moment on robotics and automation. While the term conjures up factory bots or humanoids, India’s approach is more functional. GreyOrange is optimizing warehouse logistics. Genrobotics has built sewer-cleaning robots to eliminate manual scavenging. These aren't sexy in the typical startup sense, but they are transformative. In 2023, industrial robotics adoption in India grew by 24%, driven by manufacturing and logistics firms seeking efficiency. The push from the government’s Smart Cities initiative also plays a role here.
Even defense and space are seeing private participation. We now have ISRO collaborating with startups and a ₹1,000 crore VC fund for space tech on the anvil. The government's Production-Linked Incentive (PLI) schemes, combined with Make in India momentum, are encouraging homegrown hardware ventures in drones, semiconductor design, and energy storage. The Ministry of Defence cleared over 150 startups under the Innovations for Defence Excellence (iDEX) program by mid-2024, showing the state’s growing openness to startup solutions in critical sectors.
Let’s talk about the types of capital that are flowing into DeepTech. Traditional VCs still find it difficult to back these ventures unless they see product-market fit or scalable revenue. The average Indian VC fund has a 7-10 year lifecycle. That doesn’t align well with a DeepTech startup that may need 4-5 years of R&D before commercialization. Which is why we’re seeing a rise in sector-specific funds, family offices, and strategic corporate investors entering the fray. Companies like Reliance, Tata, and Adani are either incubating or investing in DeepTech capabilities.
Additionally, alternative capital models are gaining traction. DeepTech-focused venture debt, government-backed seed programs, and corporate venture capital arms are all providing pathways to non-dilutive or patient capital. Public institutions like SIDBI, DST, and BIRAC are playing catalytic roles. In 2023 alone, BIRAC disbursed over ₹1,200 crore in funding support across biotech and MedTech innovations.
Furthermore, global investors, particularly from Europe, Japan, and the US, are sniffing around for emerging market innovation. Unlike China, where DeepTech is often state-sponsored, or the US where it’s VC-heavy, India is somewhere in the middle. Public-private collaboration is our best bet. IIT-Madras’s collaboration with DRDO, or BIRAC’s grants for biotech innovators, are good examples. But we need more structured innovation pipelines.
Israel offers a compelling case study. Over 50% of Israeli DeepTech startups originate in university labs, and the government provides substantial early-stage support through the Israel Innovation Authority. The country spends 4.9% of its GDP on R&D, compared to India’s 0.7%. The contrast is stark. In the US, the National Science Foundation and DARPA act as high-risk early funders, ensuring DeepTech projects don't wither on the vine. Europe, on the other hand, combines research institutions with long-term grants like Horizon Europe, which allocated over €95 billion to research and innovation through 2027.
India’s comparative advantages lie elsewhere. Our engineering talent pool is vast. Our costs are lower. Our problems, whether healthcare access, energy storage, or crop productivity, are large enough to demand DeepTech solutions. But we need to improve our IP frameworks, cross-border R&D collaboration, and university incubation models. In India, less than 5% of patents come from universities. This bottleneck must be addressed if we want to create a reliable pipeline of DeepTech innovation.
Regulation matters too. The draft Digital India Act, semiconductor policies, data protection laws all impact DeepTech’s future. Entrepreneurs often underestimate the time it takes to align with regulatory standards, especially in sectors like health and defense. Investors, meanwhile, worry about lack of exit options. Unlike SaaS, where M&A is frequent, DeepTech exits are fewer and often strategic. In India, the M&A market for DeepTech remains nascent, with fewer than 10 such transactions recorded in 2023, compared to over 200 in the US.
From advising hundreds of startups, one clear lesson emerges: storytelling in DeepTech must evolve. It’s not just about what your technology does, it’s about why it matters now, how it changes industry cost structures, and how it scales across markets. Founders must speak to both engineers and financiers, sometimes in the same breath. This is harder than it looks. But those who master it win.
I'll give you a recent example. High-fidelity simulators were being built by a quantum computing startup I worked with. At first, they concentrated their outreach on hardware specifications and scholarly citations. We assisted them in shifting their focus toward better protein folding, quicker drug discovery, and use-cases in pharmaceutical simulations. Enterprise Pharma was suddenly paying attention. They are currently negotiating with strategic investors and international labs.
Strategic fundraising, especially in DeepTech, is not about chasing the biggest valuation. It’s about finding capital aligned with your vision and risk horizon. In India, this often means hybrid models: initial grants from BIRAC, followed by strategic angels, then a mix of VC and CSR-backed incubators. It's slow, yes but it builds resilience.
The future of DeepTech in India hinges on a few pillars. One, deeper university-industry collaboration. Two, patient and smart capital that understands tech timelines. Three, policy frameworks that reduce friction without stifling innovation. Four, more domestic demand from Indian enterprises willing to adopt DeepTech. But perhaps the most overlooked factor is talent. India produces nearly 1.5 million engineers annually, but only a fraction specialize in frontier tech. Investments in postgraduate and postdoctoral research must rise.
We’re already seeing signs of this shift. Zepto’s recent success shows that even in quick commerce, operational innovation matters. But DeepTech is playing a longer game. Its payoff isn’t in viral downloads or GMV spikes, but in tectonic shifts in how we diagnose diseases, build satellites, secure data, or store energy.
India was late to the 4G party and missed the semiconductor revolution. But there is an opportunity to lead with DeepTech. We are not required to follow Shenzhen or the Valley. Our scientific talent, scaled through economical innovation, and fueled by capital that prioritizes depth over speed allow us to forge our own path.
India’s DeepTech startup ecosystem has the ingredients for global leadership scientific talent, market depth, rising capital availability, and geopolitical alignment with technology democracies.India's DeepTech startup ecosystem has world-class scientific talent, a deep market, increasing capital availability, and geopolitical alignment with technology democracies. However, systemic investments, long-term planning, and institutional patience are necessary to realize full potential.
In order to gain momentum, India needs to:
I remain optimistic. The next decade will be India’s DeepTech decade if we get the funding, storytelling, and policy mix right. And if we do, it won’t just change our startup landscape. It will change our economy, our society, and our place in the world.
The Journey Into Industry
Vandana Tolani is the Founder and CEO of Convanto, a leading boutique investment bank in India, now in its 12th year. With over 20 years of global experience, she was previously the Managing Director for a family office fund. For the past 12 years, she has been leading Convanto, where she has supported 357 companies across 45 countries and five VC funds with fundraising and strategic advisory. Her achievements include being named Woman Entrepreneur of the Year (2021-2023). Top 10 Women Leaders in Wealth Management, and Global Woman Leader by the World Women Congress. She has been featured in leading publications such as the Times of India and Hindustan Times, and honored by Dr. Kiran Bedi and Hema Malini for her contributions to the startup ecosystem. On Women Entrepreneurs Day 2024, she was recognized among the Top 8 Women Entrepreneurs, and on March 8, 2025, among the Inspiring Women Leaders. She has delivered 350+ talks, listed on www.convanto.com
.jpg)
.jpg)
.jpg)
.jpg)
.jpg)
.jpg)
