Deeptech startups in India urged to pursue global ambitions despite challenges

Government funding and policy as catalysts

At TechSparks, Shweta Rajpal Kohli, President and CEO of Startup Policy Forum, highlighted the government’s role in bolstering India’s deeptech ecosystem. She pointed to the Rs 1 lakh crore Research, Development and Innovation Fund as a key milestone in addressing capital constraints for early-stage ventures.

Kohli emphasized that deeptech startups are not just pursuing commercial success but also building technologies critical to India’s sovereign capabilities. This aligns with broader national priorities, particularly in sectors like semiconductors, where self-reliance is increasingly seen as a strategic imperative.

Talent shortages and funding gaps

Despite progress, panellists identified persistent challenges. Gokul N A, Founder of robotics startup CynLr, noted a shortage of talent, particularly at the mid-management level, which is critical for scaling operations. This gap, he said, is a significant bottleneck for startups aiming to expand globally.

Funding remains another hurdle. While seed-stage capital has become more accessible, scaling beyond $5 million is difficult, according to Kaushik Mudda, Founder and CEO of Ethereal Machines. He added that securing $10 million to $15 million in funding is still a steep climb for most deeptech startups. Hareesh Chandrasekar, Co-founder of Agnit Semiconductors, echoed this sentiment, stating that patient capital—long-term investment willing to wait for returns—is scarce.

Global markets as a necessity

Panellists unanimously agreed that deeptech startups must look beyond India’s borders to achieve sustainable growth. Gokul N A stressed that deep technology, by its nature, requires a global market to justify the investment in research and development. Focusing solely on India, he argued, would limit the potential of these startups.

The discussion also underscored the importance of sovereign technological capabilities. Chandrasekar, whose company Agnit Semiconductors is India’s first vertically integrated gallium nitride semiconductor startup, warned that dependence on foreign semiconductor supply chains poses risks, especially given their strategic implications. Developing domestic capabilities in such sectors, he said, is not just a commercial opportunity but a national priority.

Role of government: Enabler, not sole customer

While government support was recognized as a catalyst, panellists cautioned against relying on it as the primary customer. Shweta Rajpal Kohli clarified that the government’s role should be that of an enabler—creating policies and infrastructure that allow startups to thrive—rather than a crutch for market validation. This distinction, she said, is crucial for deeptech startups to develop resilience and competitiveness on a global scale.

What this means

Lazyfounder analysis — our interpretation, not reported fact.

For founders and operators in India’s deeptech space, this discussion highlights a paradox: the sector is gaining momentum with unprecedented government backing, yet the path to scale remains fraught with systemic gaps. The Rs 1 lakh crore fund is a signal of intent, but its effectiveness will depend on how well it addresses the mid-stage funding cliff—a challenge that has derailed many startups even after promising pilots.

The talent shortage at the mid-management level is a red flag for startups planning to expand. It suggests a need for targeted upskilling initiatives or partnerships with academic institutions to bridge the gap. For investors, the funding bottleneck beyond $5 million presents an opportunity to fill a critical void, but it also demands patience and a higher risk appetite, given the longer gestation periods of deeptech ventures.

The emphasis on global ambitions is a reminder that deeptech startups cannot treat India as their sole market. Founders must plan for international regulatory landscapes, supply chains, and customer bases from day one. This global mindset is not just about revenue—it’s about accessing the talent, capital, and validation needed to compete in sectors where India is still catching up.

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