Over 85% of India's deeptech funding raised in past six years: IVCA

More than 85 per cent of India's $11.4 billion deeptech funding since 2015 was raised in the past six years, as the sector moved from early-stage proof points to commercial validation

Over 85 per cent of India’s total deeptech funding of $11.4 billion since 2015 was raised in the past six years, according to data from the Indian Venture and Alternate Capital Association (IVCA). 

 

The year 2025 marked the highest funding year on record, with deeptech startups raising $2.9 billion across a record 189 rounds.

 

Year-to-date in 2026, companies have raised a total of nearly ~$ 1 billion in funding across 103 rounds. 

 

The higher concentration of funding over the past six years, particularly since 2021, reflects the deeptech ecosystem’s transition from early-stage proof points to commercial validation. 

 

Recent examples include Skyroot Aerospace’s first private orbital-class rocket launch and Neysa’s $1.2 billion funding round, which valued the artificial intelligence (AI) infrastructure company at unicorn status.

 

Between 2015 and 2026, Blume Ventures was reported as the most active deeptech investor with a total of 51 deals, followed by Speciale Invest’s 50 and Accel India’s 48 deals. 

 

During the same period, deeptech companies raised a total of $544 million through venture debt across 61 deals.

 

In terms of exits, even as strategic mergers and acquisitions (M&As) were the preferred route, secondary sales were most achieved. 

 

The report said 62 per cent of funds identified exit visibility as the primary challenge. Secondary transactions accounted for 56 per cent of all exits, even as the initial public offering (IPO) route remains viable but requires a deeper layer of growth-stage capital.

 

Last year saw 18 exits worth $600 million as compared to just 7 exits worth $152 million in 2024. 

 

A deeptech startup is an enterprise engaged in developing solutions based on new scientific or engineering knowledge or advancements. This includes interdisciplinary innovations where the technology is either yet to be developed or still under development. 

 

The Indian deeptech landscape includes companies across sectors such as AI, semiconductors and electronics, spacetech, defence and aerospace, robotics, quantum computing technology, and others. 

 

Such companies are characterised by significant investment in research and development (R&D) relative to its revenue or funding and ownership or creation of novel intellectual property (IP) with a clear intent to commercialise it. 

 

And, the nature of its business involves long development cycles, extended gestation periods, substantial capital and infrastructure requirements, and high levels of technical or scientific uncertainty.