Over 100 Indian VCs apply for RDI as deeptech goes mainstream
More than 100 Indian venture capital firms, including Mela Ventures, Ideaspring Capital and Blume Ventures, have applied for the government’s Research, Development and Innovation (RDI) fund as they double down on deeptech investments, multiple investors told ET.
The RDI fund, with an outlay of Rs 1 lakh crore, will function as a fund of funds to catalyse private investments in deeptech and R&D-focused startups over a period of six years, in addition to loan financing to startups.
VCs that have applied for the scheme include 3one4 Capital, Chiratae Ventures, Wyser and Waterbridge Ventures.
While over 100 funds have applied, investors said it is unlikely that all the funds will receive approval. Successful applicants can use the government allocation to invest in deeptech startups.
The initiative could result in “manifold expansion in the number and quality of deeptech companies in India,” Arpit Agarwal, investment partner at Blume Ventures, told ET. “We confirm that we have applied for the funding as part of this scheme, hoping to expand our footprint in this area,” he said.
Vishal Katariya of Ankur Capital said RDIF will allow VCs to expand their funding pool and add to the growth capital. “For the deeptech funds, growth capital is a challenge. This will help in bridging the gap,” he added.
As per the Department of Science and Technology (DST), which is handling the scheme announced in the July 2025 budget, the fund will be distributed in the form of loans at low or nil rates, equity in startups, or contribution to deeptech fund of funds.
The DST opened applications for the RDI fund in January.
Initiatives such as RDI and IndiaAI mission are steps to create a sustainable tech ecosystem that can foster innovation like in the US and China where the governments have invested billions in science and technology.
“The government has been opening newer avenues for raising funds, such as Pension Fund Regulatory and Development Authority (PFRDA), where they can invest a corpus of 5% in VC funds, and the latest being RDI,” said Krishnakumar Natarajan, managing partner at Mela Ventures. “All these encourage investments in the deeptech sector, which is important.”
The RDI fund, with an outlay of Rs 1 lakh crore, will function as a fund of funds to catalyse private investments in deeptech and R&D-focused startups over a period of six years, in addition to loan financing to startups.
VCs that have applied for the scheme include 3one4 Capital, Chiratae Ventures, Wyser and Waterbridge Ventures.
While over 100 funds have applied, investors said it is unlikely that all the funds will receive approval. Successful applicants can use the government allocation to invest in deeptech startups.
The initiative could result in “manifold expansion in the number and quality of deeptech companies in India,” Arpit Agarwal, investment partner at Blume Ventures, told ET. “We confirm that we have applied for the funding as part of this scheme, hoping to expand our footprint in this area,” he said.
Vishal Katariya of Ankur Capital said RDIF will allow VCs to expand their funding pool and add to the growth capital. “For the deeptech funds, growth capital is a challenge. This will help in bridging the gap,” he added.
As per the Department of Science and Technology (DST), which is handling the scheme announced in the July 2025 budget, the fund will be distributed in the form of loans at low or nil rates, equity in startups, or contribution to deeptech fund of funds.
The DST opened applications for the RDI fund in January.
Initiatives such as RDI and IndiaAI mission are steps to create a sustainable tech ecosystem that can foster innovation like in the US and China where the governments have invested billions in science and technology.
“The government has been opening newer avenues for raising funds, such as Pension Fund Regulatory and Development Authority (PFRDA), where they can invest a corpus of 5% in VC funds, and the latest being RDI,” said Krishnakumar Natarajan, managing partner at Mela Ventures. “All these encourage investments in the deeptech sector, which is important.”
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