India on the Verge of Transformative Deeptech Leap, Funding Hurdles Still Persist: Report Insights captured from nearly 100 deeptech founders in India revealed that over 53 per cent of the founders maintain that funding in the sector remains difficult to access, while 44 per cent found it reasonably available. Only 3 per cent of the study group said that the funds were abundantly available.
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Deeptech startups in India continue to face fundraising challenges; however, founders remain largely confident in their ability to secure further funding, according to a report titled 'Deeptech India 2025,' jointly released by TDK Corporation's investment subsidiary, TDK Ventures, and early-stage investor Kae Capital.
Insights captured from nearly 100 deeptech founders in India revealed that over 53 per cent of the founders maintain that funding in the sector remains difficult to access, while 44 per cent found it reasonably available. Only 3 per cent of the study group said that the funds were abundantly available.
Abhishek Srivastava, General Partner, Kae Capital, said that founders in the deeptech arena are tackling problems that demand long gestation periods, significant technical depth, and a strong ecosystem to lean on.
"By enabling stronger capital participation and creating pathways to global markets, we want to help Indian founders build companies that don't just succeed here, but lead on the world stage," said Srivastava, adding that "Local building-global pricing," is the way to go for Indian deeptech startups.
Despite a significant number reporting that there's a gap in funding, more than 58 per cent of the responses expressed confidence in raising their next round. Close to 45 per cent of the founders also felt that a lack of investor understanding caused roadblocks while fundraising, with 19 per cent feeling that longer gestation periods caused problems while trying to attract investors.
As much as 13 per cent of the founders felt that a mismatch in valuation numbers caused funding gaps, while limited depth of local venture capital was cited as the main cause by 9 per cent of founders.
Nicolas Sauvage, President, TDK Ventures, said that India is on the verge of "transformative growth" in the deeptech sector, with the capacity to build global deeptech leaders.
"Deeptech demands a fundamentally different and nuanced approach. By validating technologies, enabling pilots, and bringing global perspectives, we hope to help India's innovators scale into world-class companies," said Sauvage.
The report highlighted several high-growth sectors- energy tech and transition, robotics and automation, B2C deeptech, agritech, advanced material, semiconductor, space-tech, and quantum technology-that are expected to witness accelerated innovation and funding activity in the coming years.
The survey also reveals market adoption and talent as persistent concerns in deeptech. According to the report, while 44.3 per cent of founders believe domestic markets are becoming ready for deeptech solutions, 30.9 per cent cited pricing mismatches, and another 30.9 per cent highlighted challenges with overseas go-to-market strategies.
Limited technology maturity and low engagement from Indian Original Equipment Manufacturers (OEMs) were also noted as barriers.
According to the report, government initiatives, however, are beginning to make an impact. Nearly 27 per cent of founders pointed to tax incentives as the most helpful, followed by R&D policies (23 per cent) and public procurement opportunities (12 per cent).
"Despite challenges across funding, talent, infrastructure, and policy, founders remain optimistic about India's deeptech trajectory. The country's deeptech ecosystem is entering a decisive growth phase," said Ravi Jain, Investment Director, TDK Ventures India.
