India Accelerates Deep-Tech Ecosystem with New Funding Initiatives and Strategic Collaborations

India’s ambition to emerge as a global powerhouse in deep technology is gaining unprecedented momentum. With a significant infusion of capital, strategic international alliances, and pioneering domestic innovations, the country is laying a robust foundation for a self-reliant, innovation-driven ecosystem. The recent launch and deployment of the ₹400 crore (approximately $50 million) Bharat Breakthrough Fund marks a critical milestone in this journey, signaling India’s commitment to bridging funding gaps and fostering indigenous, high-impact technological solutions.

Launch and Deployment of the ₹400 Crore Bharat Breakthrough Fund: Bridging the "Valley of Death"

The initial deployment of the Bharat Breakthrough Fund, led by ValleyNXT Ventures, represents a strategic effort to support early- and growth-stage deep-tech startups. This fund aims to address the persistent "valley of death"—the critical phase where promising prototypes often stall due to lack of capital—particularly in sectors such as Artificial Intelligence (AI), robotics, quantum computing, and advanced materials.

Key objectives of the fund include:

• Supporting disruptive innovations with high societal and industrial impact.
• Decentralizing innovation by nurturing regional hubs beyond traditional tech corridors like Bengaluru and Delhi.
• Advancing India’s Atmanirbhar Bharat (Self-Reliant India) vision through indigenous, self-sufficient solutions.
• Filling funding gaps to enable startups to transition from prototypes to market-ready products.

This fund is designed to accelerate R&D, facilitate commercialization, and foster a vibrant deep-tech startup ecosystem capable of competing on the global stage.

Sector Focus and Strategic Goals: Prioritizing Sovereignty and Hardware Independence

Aligned with India’s broader vision of technological sovereignty, the Bharat Breakthrough Fund emphasizes:

• Artificial Intelligence (AI): Focused on localized models across India’s diverse languages, and sovereign AI—indigenous models, hardware, and infrastructure tailored for societal needs.
• Robotics
• Quantum Computing
• Advanced Materials

A significant thrust is on hardware sovereignty, aiming to reduce dependence on imported components and bolster domestic manufacturing. Initiatives include developing energy-efficient AI chips and indigenous hardware components to support scalable, self-reliant solutions.

Strengthening International Collaborations: Nvidia and Qualcomm Lead the Way

India’s deep-tech ambitions are reinforced through strategic partnerships with global technology giants, which are crucial for access to advanced hardware, mentorship, and capital.

Nvidia’s Growing Role

• During the India AI Impact Summit 2026, Nvidia announced new initiatives to empower Indian startups via access to cutting-edge AI hardware, software tools, mentorship, and funding.
• The Activate-Nvidia partnership is a flagship program, providing startups with state-of-the-art AI hardware and technical mentorship to accelerate growth and global competitiveness.

"Our collaboration with Nvidia will help Indian AI startups scale rapidly and compete globally," stated Aakrit Vaish, cofounder of Haptik and head of Activate.

• The Nvidia-Activate Technical Assistance Program offers bespoke mentorship, hardware access, and go-to-market support, nurturing a robust and scalable AI ecosystem.

Qualcomm’s Strategic Investments

• Qualcomm has committed approximately $150 million through its venture arm to invest in Indian AI startups, emphasizing edge computing, 5G integration, and IoT.
• These investments underscore India’s emerging role as a next-generation wireless and AI innovation hub, attracting significant global capital to bolster local capabilities.

Domestic Innovations Demonstrate Growing Capabilities

India’s deep-tech ecosystem is witnessing remarkable breakthroughs from indigenous startups, emphasizing the country’s rising R&D prowess.

Notable Startups and Milestones

• Sarvam AI has recently unveiled large language models (LLMs) with 30-billion and 105-billion parameters. These models demonstrate real-time processing, reasoning, and language understanding, positioning India as capable of developing sovereign AI infrastructure that rivals global leaders.
• The company also launched Indus AI, a chatbot tailored for Indian languages, addressing the critical need for localized AI solutions accessible across India’s linguistic diversity.

Rising Stars in Autonomous and Agentic AI

• RationalGO, founded by industry veterans with backgrounds at McKinsey and Y Combinator, has launched an agentic AI platform designed to build autonomous agents capable of executing complex, multi-step tasks.
• This venture exemplifies India’s ambitious AI startup landscape, blending international expertise with local insights to develop scalable, autonomous AI systems tailored for Indian use cases.

Other Noteworthy Developments

• Portkey, specializing in Large Language Model Operations (LLMOps), recently raised $15 million led by Elevation Capital. Their platform addresses scaling and operationalizing LLMs, a crucial infrastructure component for deploying large models at scale.
• Tattvam AI, an IIT Madras alumnus startup, secured $1.7 million to develop AI-driven semiconductor design automation tools, highlighting India’s strides in semiconductor innovation.

Hardware and Infrastructure: Developing Indigenous Chips and Reducing Dependency

The development of AI chips and hardware infrastructure remains a critical challenge. Industry leaders like June Paik, CEO of FuriosaAI, emphasize the rising costs and power demands of next-generation AI hardware.

"AI acceleration hardware is becoming increasingly expensive, with next-generation chips demanding high power budgets," Paik notes.

This underscores the importance of investing in indigenous chip development and energy-efficient hardware solutions. Recent funding rounds reflect this focus:

• BOS Semiconductors, a South Korean fabless chipmaker, raised $60.2 million in Series A funding to commercialize AI chips for autonomous vehicles, aiming to strengthen domestic AI hardware manufacturing.
• Portkey’s recent $15 million funding is dedicated to scaling LLM infrastructure.
• Tattvam AI has secured $1.7 million to develop AI-based semiconductor design automation tools.

These efforts collectively aim to build a resilient hardware ecosystem capable of supporting large-scale AI applications.

New Development: Companion Labs Raises $2.5M to Build Interactive, Local-Language Consumer AI Experiences

Adding to India’s deep-tech narrative, Companion Labs, a consumer-focused AI startup, has recently raised $2.5 million in a funding round led by Peak XV Surge. The startup aims to create interactive, local-language entertainment and engagement experiences tailored for Indian consumers.

Key aspects include:

• Developing conversational AI interfaces that operate seamlessly in multiple Indian languages.
• Offering personalized entertainment, education, and wellness applications that cater to diverse linguistic and cultural contexts.
• Focusing on user-friendly, accessible AI solutions that can transform consumer interactions across urban and rural India.

This move underscores a growing trend of consumer AI, emphasizing local-language capabilities to reach broad audiences and create meaningful, culturally relevant experiences.

Outlook: A Growing Ecosystem with Global and Domestic Momentum

India’s deep-tech landscape is increasingly vibrant, characterized by:

• A surge in startup activity, with more ventures securing funding and expanding R&D efforts.
• Growing international investor confidence, driven by strategic collaborations with Nvidia, Qualcomm, and others.
• Significant advancements in sovereign AI models, autonomous systems, and hardware sovereignty.

Toward Technological Sovereignty and Self-Reliance

India is actively working toward establishing itself as a self-reliant deep-tech hub, with indigenous models and hardware infrastructure capable of competing globally. The ecosystem’s growth is expected to drive sustainable innovation across sectors such as healthcare, agriculture, education, and manufacturing, leveraging home-grown deep-tech solutions.

This strategic push aims to foster a cycle of innovation, commercialization, and global competitiveness, attracting further investments and nurturing the next generation of Indian deep-tech leaders.

Current Status and Future Trajectory

India’s deep-tech ecosystem is on a rapid ascent, exemplified by:

• BOS Semiconductors’ advancements in AI hardware manufacturing.
• Portkey’s efforts to operationalize large language models at scale.
• The emergence of RationalGO and Sarvam AI as leaders in autonomous AI and sovereign models.
• The recent Companion Labs funding boost, highlighting a focus on consumer AI and local-language solutions.
• Ongoing policy support and sector-specific funding pools that continue to nurture innovation.

With sustained focus on nurturing startups, expanding strategic partnerships, and prioritizing hardware sovereignty, India is on a trajectory to develop a comprehensive, self-reliant deep-tech ecosystem capable of addressing societal challenges and positioning itself as a global leader in next-generation technologies.

---

In sum, India is rapidly transforming its deep-tech landscape, with the ₹400 crore Bharat Breakthrough Fund serving as a catalyst. The confluence of domestic innovation, strategic international collaborations, and a focus on hardware independence positions the country to lead in sovereign AI, autonomous systems, and advanced materials. As the ecosystem matures, India’s vision of technological sovereignty and self-reliance appears increasingly within reach, promising a future where Indian deep-tech startups compete and thrive on the global stage.