Last month, close to 20 Indian investors, which included Ideaspring Capital, Speciale Invest, Chiratae Ventures, Sixth Sense Ventures, and Blume Ventures, had applied for the RDIF. They were asked to present to a committee that will select the funds for capital allocation, sources said.
The RDI fund was announced in the July 2025 budget to fund R&D focused startups directly, and function as a fund of funds to catalyse private investments in deeptech, over a period of six years. This is in addition to loan financing to the startups.
According to one of sources, the idea is to finalise the first set of AIFs in India in the coming weeks. SP Singh, chief general manager at SIDBI, who was earlier heading SIDBI Venture Capital, is currently overseeing the process, both the sources added.
The government aims to clear the first set of capital allocations to the Indian VC firms in the near term, investors also cautioned that the process could take longer.
Emails sent to SP Singh, RDIF, and each of the venture capital funds mentioned did not elicit response till press time.
Last month, the government started disbursing the funds for the startups under RDI. The Technology Development Board (TDB) signed agreements with five companies such as Dhruva Space, Endure Air Systems, e-TRNL Energy, Noccarc Robotics, and Eyestem Research.
For the investors, who had applied for the fund in January, the process has begun, with the government inviting Indians investors to present, and expectation is that the funds will be released in the coming weeks, sources told ET. Over 100 Indian venture capital companies had applied to get funded under RDIF.
Substantial Funds
While the quantum of funds each investor has applied varies, industry experts peg that it could be as high as a few hundred crores, depending on the size of the fund.
This is coming at a time when multiple new funds and existing funds focused on deeptech are gaining traction in India. ET had earlier reported that multiple deeptech investors such as Mela Ventures, Ideaspring Capital, and Java Capital are raising funds, with some such as Kalaari Capital and Blue Ashva Capital exploring dedicated deeptech-focused structures. Nandan Nilekani founded Fundamentum had launched a Rs 3000 crore fund focused on AI and deeptech.
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 earlier. Vishal Katariya of Ankur Capital had told ET that 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.
Investments into deeptech have also been on the rise in the country, with funding going into sectors such as space, semiconductors and manufacturing. According to data from Venture Intelligence, semiconductors startups India have raised $92 million in the first five months of 2026, up from $25 million last year.