DeepTech Final Report 2124-210624

India's
DeepTech Dawn
Forging Ahead
June 2024
1 India’s DeepTech Dawn: Forging Ahead

Foreword
In recent years, India’s technology landscape has undergone next generation of DeepTech startups which are prepared to As we look to the future, we see enterprises going
a remarkable transformation, propelled by the rapid revolutionize the space. A strengthening patent landscape beyond mere collaborations to strategic investments and
rise of DeepTech startups. These innovative ventures are reflects a growing culture of innovation protection, while acquisitions, academia becoming an even more active
not only tackling complex technical challenges but also sectors such as Agri-Tech, Space & Defense, Automotive, co-creator, and the government’s policies and initiatives
addressing critical socio-economic issues, demonstrating the Health Tech, and many more continue to become providing a stronger foundation for this ecosystem to soar.
transformative power of technology to drive positive change. playgrounds for disruptive ideas, turning local challenges Afterall, India’s DeepTech story, more than about economic
into global opportunities. impact, is about a socio-technological shift. It paints the
While our country has long been synonymous with excellence picture of a nation transitioning from being a technology
in IT services and consumer technology, the emergence of However, despite the remarkable progress we have made, consumer to a creator driving cutting-edge research, thus
DeepTech startups represents a new frontier of opportunity challenges remain. Access to funding continues to be the reshaping India’s global narrative – “India is not only a
and growth. From harnessing the power of AI for completely biggest challenge area for 70% of the Indian DeepTech key market and an outsourcing destination but is also an
transforming the way industries run, to leveraging other deep startups, with median ticket sizes being the smallest across innovation powerhouse capable of solving global problems.”
technologies like Blockchain, IoT, Drones, etc. for solving almost all funding stages when compared to other leading
some of the pressing societal challenges, Indian startups are DeepTech startup ecosystems in the world. Other challenge We hope that the insights from this report are helpful to you,
at the forefront of driving innovation and shaping the future areas include talent attraction and retention, and access and we welcome your feedback and comments at
of technology. to robust research and computing infrastructure, among research@nasscom.in.
others. So, while India has the third-largest pool of DeepTech
What is particularly interesting is the collaborative spirit
startups in the world, it needs a fillip through targeted
that pervades our ecosystem, with academia, industry,
support to catch up with its international counterparts. The
and government coming together to support and nurture Achyuta Ghosh Pari Natarajan
government and industry need to join hands to ensure that
DeepTech innovation. Our esteemed academic institutions Head- nasscom Insights CEO, Zinnov
our DeepTech startups have the resources they need to
such as the IITs, IIMs, and others not only serve as
thrive.
incubators of talent, but also play a key role in nurturing the

Contents
Executive Summary 7
01 Global DeepTech Startup Landscape 10
02 Indian DeepTech Startup Landscape 19
03 Indian DeepTech Startup Ecosystem Challenges 41
04 Unlocking Future Growth: Recommendations 46
05 Indian DeepTech Spotlight: Case Studies 50
06 Voice of the Ecosystem 59

Approach
Objective nasscom DeepTech Initiative
Expert interviews and case studies
The study aims to dissect the Global and Indian DeepTech startup landscape, focusing on across different verticals and tech areas
the distinctive attributes that differentiate DeepTech startups from their traditional tech
counterparts. It will spotlight key trends across various dimensions, including ecosystem
expansion, technology focus, funding, M&As, IP, and sectoral focus. Additionally, the
report will delve into stakeholders’ contribution in fortifying the ecosystem development.
Addressing challenges encountered by founders/startups, the report will provide
actionable recommendations to the government, and propose strategies to propel vertical
growth. DeepTech startup case studies featured in the report highlight the unique features
of DeepTech solutions/products and their potential for societal impact.
This report has been co-developed by nasscom and Zinnov through a comprehensive study
to understand the deep technology startup landscape in India.
This report includes the following:
Current scenario and emerging trends in the Global and Indian DeepTech startup
ecosystem Secondary Research Ecosystem Survey
Deep dive on the tech themes, patent landscape and key sectors driving impact Sagacious, Crunchbase, CB Insights, Survey responses from 100+ ecosystem
Pitchbook, nasscom reports, etc. enablers such as founders, investors,
Role played by ecosystem enablers like investors, enterprises, academia and
academia, and enterprises.
government in nurturing the Indian DeepTech startup ecosystem

What defines Tech startup
a DeepTech
An entity working towards innovation, development, deployment, and commercialisation of new products,
processes, or services driven by technology or intellectual property.
startup according Age: 10 YEARS Origin: INDIA Differentiator:

Innovation
Stage: Protype +
to ecosystem What is defined as DeepTech?
stakeholders?
DeepTech startups utilize existing advanced technologies to create novel-to-market solutions for complex
and often unresolved problems or to invent even more advanced technologies rooted in core science and
engineering fundamentals.
Advanced technologies: largely include Artificial Intelligence/ Machine Learning, Internet of Things
(IoT), Blockchain, Big Data & Analytics, Augmented Reality/ Virtual Reality (AR/VR), Robotics, 3D
printing and Drones, etc..
Complexity: They have complex technical solutions that have the potential to redefine or create new
markets;
At the Intersection of Technologies: They leverage more than one technology to solve problems.
Inventive DeepTech startups

Additionally, from the DeepTech startup list, there are startups that are creating a new offerings which
are generally backed by fundamental research. The technology innovations under this category largely
develop new intellectual property that involve scientific advances. The products/solutions in this
category not just simplify or improve current industry processes but also create new ways of computing,
communicating, manufacturing or result in meaningful engineering innovation.

What is a DeepTech startup?
Share of Ecosystem Respondents Reporting Important Qualifying Criteria for DeepTech Startups
As per the National DeepTech
startup Policy
74.7%
A DeepTech startup involves early-stage
technologies based on scientific or engineering
advancements, to create and own Intellectual
52.0% 49.0% Property (IP). These startups are characterized by
extended development timelines and high capital
intensity, and also carry large technical uncertainty
which presents a large opportunity or risk
depending upon whether or not it succeeds.
Has created its own IP Has created a technology Using the same criteria as
solution which is unique in its the India DeepTech policy
market segment document
N = 30+
Source: nasscom-Zinnov DeepTech survey

EXECUTIVE
SUMMARY

India DeepTech India’s DeepTech startup Unlocking Future Growth: India DeepTech Spotlight:
Executive Summary Global DeepTech Trends Voice of the Ecosystem
Landscape Ecosystem Challenges Recommendations Case studies
Global DeepTech Ecosystem Has Expanded Indian DeepTech Ecosystem Continues to Expand
Significantly Post Pandemic Even Though Challenges Persist
CY 2021 was an inflection point for the global DeepTech ecosystem. Despite having the 3rd largest pool of DeepTech startups, India ranked 6th
Total funding inflow between CY 2021-23 was nearly 3X of what the among the top 9 DeepTech ecosystems in the world (excl. China) in 2023,
majorly due to lack of funding and relatively weak DeepTech enabling/
ecosystem received between CY 2014-20, driven by: supporting ecosystem.
Investments in AI, IoT, AR/VR, Blockchain, and Robotics.
India ranks last in the top 8 DeepTech ecosystem ranking when median ticket
Proven capability of DeepTech startups to address global sizes across all funding stages are considered- this seriously hampers the ability
of DeepTech startups to scale.
strategic challenges, and impact sectors with social and
economic significance. While availability of AI focused talent is a driver for India, India also needs to
prioritize building skills across multiple technologies to truly unlock its DeepTech
Continued investments in DeepTech across BFSI and Industrial potential.
& Manufacturing sectors, along with growing investor focus on
India currently has 3600+ DeepTech startups, out of which-
sectors like Cybersecurity and Environment Tech.
480 were established in 2023 itself, ~2X more than number of DeepTech
Global funding in DeepTech startups across 11 key strategic sectors startups established in 2022.
totalled USD 305 Bn between 2021 and 2023, more than 2.5X of the Out of these 480 startups established in 2023, 100+ are inventive DeepTech
amount that flowed in between 2014 and 2020. startups, that have created IP, or solutions in new areas.
While BFSI and Industrial and Manufacturing have continued their Indian DeepTech startups have raised a cumulative $10 Bn in the last 5 years,
out of which-
dominance with respect to funding in DeepTech startups over the
$850 Mn was raised in 2023 itself - this is a 77% decline over the $3.7 Bn
past 10 years, sectors like Cybersecurity and Environment Tech have
that was raised in 2022.
moved up big time in the ranking of most funded DeepTech startup
Number of deals, meanwhile, declined by 25% in 2023 over 2022.
sectors.

Even in these difficult times, growing interest in AI across the globe supported the
What India Needs to Do to Achieve a Top 3
growth of DeepTech startups in India in 2023-
DeepTech Ecosystem Rank
74% of the DeepTech startups incepted in 2023 were focused on AI, while the
share of AI-focused DeepTech startups incepted between 2014-22 was 62%.
86% of the startups that raised funding in 2023 have AI focus. However, several challenges need to be fixed for continued growth of
Indian DeepTech startup ecosystem-
Collaborations and partnerships are also supporting the Indian DeepTech
startup ecosystem- Startups cite funding for scaling, talent attraction, and global
expansion as the key challenge areas.
70% of the Incubators/Accelerators (I/As) across top 50 universities are
focused on DeepTech
Investors are wary of long gestation periods, collaboration dynamics,
>60% of these I/As have ongoing partnerships with large enterprises for R&D and effective exits.
support
80% of these I/As are focused on AI and IoT Enterprises find IP and data management as the key challenge,
while academia struggles with long-term funding and constructing
Even though established technology hubs in India still account for majority of collaborative networks.
the Indian DeepTech startups, yet the number of new DeepTech startups getting
incepted in emerging hubs grew by ~2X in 2023, the highest in 5 years.
AI takes the center stage in patent filings with 41% of all patent filings in Nasscom’s recommendation to the government is to identify
DeepTech, followed, with a large gap, by IoT and Neurotech.
and strengthen innovation clusters, facilitate availability of
Indian DeepTech ecosystem’s focus continues to increase on scalable uses cases patient capital and robust compute infrastructure, fast track the
in sectors with strategic importance, such as Space & Defense, Health Tech,
implementation of the National DeepTech Startup Policy (NDTSP),
Foodtech, and Industrial and Manufacturing.
improve the IP framework, and strengthen the overall supplier
Success stories in Indian DeepTech ecosystem highlight the ability to tackle real
world challenges and build diverse tech focus, embracing partnerships for scaling, ecosystem (including talent pipeline).
having market validation, and building strong scientific foundations as the key
success factors for DeepTech startups.

Global DeepTech India DeepTech India’s DeepTech startup Unlocking Future Growth: India DeepTech Spotlight:
Executive Summary Voice of the Ecosystem
Startup Landscape Landscape Ecosystem Challenges Recommendations Case studies
01
Global DeepTech
Startup Landscape

Cumulative global VC investments in DeepTech startups, over the past 10 years, reached $590 Bn in CY 2023, with ~3X more
investments in CY2021-23 over those in CY2014-20
In 2021, pandemic led to a surge in digital transformation, with businesses

Total Worldwide VC investments in DeepTech Startups 1 leveraging DeepTech to adapt to the new trend of remote work
(in USD Bn)1 Companies embraced DeepTech to build remote work technologies, and develop
online services and systems to support remote work
3
VC investments in DeepTech grew by more than 2X in 2021, while Big Data
and Analytics investments grew by 135%
2 Developments across new technologies like quantum, blockchain, etc. took the
2 center stage, with many use cases emerging across sectors.
~3X Late 2021 witnessed a renewed interest in the metaverse, cryptocurrencies, and NFTs.
Blockchain investments skyrocketed by 534% in 2021, reaching $25.8

1 Bn, and continued their momentum in 2022 with an additional $30.3 Bn
$160Bn $430Bn invested.
Total funding in DeepTech startups Total funding in

2023 marked a quantum leap in AI’s ability to create entirely new realities
over these 7 years DeepTech startups
over the last 3 years 3 through generative AI
Leading to advancements in fields like drug discovery, material science, and
creative content generation
2017
CY 2014-20 2020
CY 20212021CY 2022
2022 CY 2023
2023
Global private investment in Generative AI grew by ~9X between 2022 and
2023, jumping from ~$3 Bn to more than $25 Bn.
Note (1) This analysis considers the total cumulative DeepTech startup funding from approximately 114 countries founded between 1st Jan 2014 to 31st Dec 2023.
Source: Pitchbook, Zinnov Research & Analysis

DeepTech is enabling both traditional and non-traditional sectors to streamline processes and improve efficiencies while also
allowing them to address some of the broad societal challenges and create additional impact (1/2)
Investment Raised1 in
USD Bn (14-23) Global Challenges Key Application Areas Illustrative Examples
Financial inclusion gaps AI-powered fraud detection, Quantum-resistant

BFSI $97B Evolving Customer Expectations cryptography, Biometric authentication, Open banking
Financial Crime and Fraud etc.
Improving safety standards Digital Twins and Industrial IoT, Additive Manufacturing,
Industrial &
$68B Labour shortages
Manufacturing Collaborative robots, AI based predictive analytics etc.
Infrastructure gaps
Infrastructure Vulnerabilities (Cloud, IoT

Advanced Encryption with Quantum Resistance,
Cybersecurity $53B etc.)
Blockchain for Secure Data Sharing, Zero-Trust Network
Ransomware And Malware
Access etc.
Phishing And Social Engineering
Access & Affordability Telemedicine & Remote Patient Monitoring, AI-powered

Health Tech $50B Shortage of Healthcare Workers Diagnostics & Precision Medicine, Genomic Sequencing
Infectious Disease Threats & Vaccine Development etc.
Dependent on fossil fuels AI-powered Climate Modeling, Carbon Sequestration,

Environment $42B Environmental emission Earth Observation Satellites, AI-powered materials
Tech Climate change discovery etc.
Note: (1) Funding raised by DeepTech startups across the critical sectors from 2014 to 2023.
Source: Pitchbook, Cbinsights,, Zinnov Research & Analysis

DeepTech is enabling both traditional and non-traditional sectors to streamline processes and improve efficiencies while also
allowing them to address some of the broad societal challenges and create additional impact (2/2)
Investment Raised1 in
USD Bn (14-23) Global Challenges Key Application Areas Illustrative Examples
Traffic congestion and emissions Advanced Battery Technology, Advanced Driver-

Mobility Tech $39B
Safety of autonomous vehicles Assistance Systems, Advanced parking solutions etc.
SCM & Stricter environmental regulations AI-powered route optimization, Predictive Maintenance
$27B Visibility & Traceability for vehicles, Demand forecasting, smart contracts etc.
Logistics
Electric and Hybrid Propulsion Systems, AI-powered

Space & Safety and Security
$27B Flight Optimization, Advanced Collision Avoidance
Defense Energy efficient systems
Systems etc.
Climate Disruption – impacting yield and

quality of the produce Climate-Smart Agriculture, AI-powered Pest & Disease
Agri-Tech & Food Waste & Spoilage Detection, Agribots & Automation, Regenerative
$13B
Foodtech Soil Degradation – Erosion and overuse of Agriculture Practices etc.
the land
Unequal Access
E-learning Platforms, Personalized Learning with AI,
EdTech $7B Teacher Shortages & Quality
Virtual Reality & Gamification etc.
Future skill development
Note: (1) Funding raised by DeepTech startups across the critical sectors from 2014 to 2023.
Source: Pitchbook, Cbinsights,, Zinnov Research & Analysis

In the post-pandemic era, non-traditional sectors like Cybersecurity and Environment Tech have been seeing a continuous
increase in investors’ attention
Illustrative List of DeepTech Startups which Raised Funding in

USD 305.7 Bn In the last 3 years, about half (~70%) of all DeepTech
investments were in sectors with strategic importance1 2023 Across Key Sectors
BFSI
Global DeepTech Funding Across Key Sectors in USD Bn
BFSI USD Top 5 sectors between (2021-
305 Bn 2023) and their ranking Insurance as a service solution for Provider of AI and cloud-based AI-based software for debt collection
SCM a nd Logistics businesses and individuals digital lending platform solutions
Sectors 2014- 2021-
Industrial & Manufacturing
Cyb ersecu rity 2020 2023
Mobility Tech BFSI 1 1 Enterprise video

surveillance systems and Cloud-based and AI-powered vehicle Wearable heads-up display for
Space & Defense Industrial & 2 2 platforms inspection systems industrial workers
Manufacturing
Agr i-Te ch Health Tech
Health Tech 3 5
FoodTech
USD Cybersecurity 4 3
EdTech 113 Bn Implantable brain-computer AI-based medical scribe software for AI-derived prognostic biomarker test
interfaces providers
Environment 7 4 for cancer detection
Industr ial & Manu facturing Tech Cybersecurity
Environ me nt Tech A marked uptick in DeepTech

investment was observed within the Managed & cyber security and Cloud-based data governance Cloud native cyber defense platform
Health Tech Cybersecurity and Environment Tech vulnerability services management software
Total Funding space between 2021 to 2023 Environment Tech

2014-2020 2021-2023
Note (1) Strategic sectors play a crucial role in propelling the global economy forward. Sectors included in this analysis are Health Tech,
Environment Tech, Industrial & Manufacturing , EdTech, FoodTech, Agri-Tech, Space & Defense, Mobility Tech, Cybersecurity, SCM and AI-enabled desktop 3D battery IoT & AI-driven smart building AI-based energy consumption
Logistics and BFSI printers for automotive applications management solution management solutions
Source: Pitchbook, Zinnov Research & Analysis

Indian DeepTech startup ecosystem ranks 6th globally in terms of performance and strength of its enabling ecosystem
Maturity Map of Leading DeepTech Startup Ecosystems Globally1 Methodology

We conducted a comparative assessment of the Top 9 DeepTech startup ecosystems
(India, USA, UK, Canada, Germany, France, Japan, Switzerland, and Israel) across key
Performance of the DeepTech startup ecosystem
parameters (outlined below) to evaluate their tech maturity:
Performance of the DeepTech Startup Ecosystem # of startups, Total funding

USA 1 raised for last 10 years, Median ticket size, Mean time taken across different
stages, # of deals, Share of DeepTech focused investors, and Distribution of
startups across stages (Seed, Early and Late)
UK Enabling Ecosystem Strength2 Research and development, Regulatory
ISRAEL
GERMANY
2 environment, Access to Capital, Talent strength, Technology and Infrastructure
JAPAN support
INDIA
CANADA
FRANCE
SWITZERLAND Number of DeepTech Startups across Leading Ecosystems Worldwide
USA UK India Canada Germany

31K+ 6.5K+ 3.6K+ 2.8K+ 2.5K+
Enabling Ecosystem
France Israel Japan Switzerland
2.5K+ 2.2K+ 2K+ 1.4K+
The size of the bubble represents Total # of DeepTech startups
Note: (1) China has not been considered in the evaluation in this section on account of limited availability of data. (2) Research and Development (Top research institutions, Incubator/accelerator focused for DeepTech, Knowledge transfer ranking, # of AI publications, #
of Patens and Industry fillings) Regulatory environment ( Ease of doing business, Scientific research legislation, applications per examiner, IP rights, Cybersecurity laws and Electronic Governance) Access to capital (Total # of VCs, Funding for Technological Development
and Financial for entrepreneurs) Talent Strength (STEM Graduates, % AI talent concentration, AI Talent Penetration and DeepTech talent employed) Tech & Infra (# of Data center and super computers, Investments in ICT, Internet penetration, Physical and service
infrastructure)
Source: Zinnov Research and Analysis

Despite having the third largest pool of DeepTech startups in the world, India sees a funding gap in this ecosystem that
limits the scalability of its DeepTech startups
Performance of Indian DeepTech startup ecosystem vis-à-vis other leading India needs a multi-pronged approach: increased funding at early-
DeepTech startup ecosystems stage, supportive market ecosystem for scale-ups, and robust initiatives
to aid commercialization.
Share of Share of Matured Share DeepTech # of Deals Median Ticket
DeepTech DeepTech Investors Size Investor Expertise Gap: India needs to bridge the gap in
startups Startups investor knowledge regarding DeepTech and cultivate a long-term
investment approach.
United States Investor Security Mechanisms: Address the challenge of

investor security by adopting successful global practices like loan
United Kingdom guarantees, regulatory sandboxes, and secondary markets.
Canada
DeepTech targeted support levers: Incentives for DeepTech
France R&D, such as tax credits and grants specifically targeted towards
these emerging technological areas
Germany
India
Venture Capital firms report co-
Israel investment programs and introduction
of government-backed instruments
Japan
Switzerland
73% as key necessary initiatives to be
taken by the government to make the
Indian DeepTech Landscape more
Relative parameters Intensity Low High
favourable to invest in.
Note: China has not been considered in the evaluation in this section on account of limited availability of data.
Source: Pitchbook, Hello Tomorrow, Zinnov Research and analysis, nasscom-Zinnov DeepTech survey 2023

Indian DeepTech startup ecosystem ranks last with respect to median ticket size across almost all funding stages when
compared to other 7 leading DeepTech startup ecosystems
Median Ticket size (Ranking) of DeepTech startups from Seed to Series C across top ecosystems
USA UK CANADA FRANCE GERMANY INDIA ISRAEL SWITZERLAND
SEED 2 7 5 6 3 8 1 4
SERIES A 1 4 5 6 3 8 1 7
SERIES B 1 3 4 5 2 6 7 8
SERIES C 6 4 2 7 3 8 5 1
Highest among countries Lowest among countries
What is not working for India?

India’s DeepTech promise is stunted by a funding gap. Compared to startups across some other leading DeepTech ecosystems, Indian DeepTech startups receive a
fraction of the median investment1 at every stage. This lack of funding restricts the ability of some promising DeepTech tart-ups to scale, thus hindering India’s ability
to compete in the global DeepTech race.
Note: For each calendar year, funding rounds of startups founded in a 10-year timeline are considered for analysis. China and Japan has not been considered in the evaluation in this section on account of limited availability of data.
Source: Pitchbook, Zinnov Research and Analysis

Availability of talent fuels India’s DeepTech potential, but broader ecosystem support, which is vital for global leadership,
lacks significantly
India has one of the largest DeepTech talent pools in the world.
Strength of Indian DeepTech startup enabling ecosystem vis-à-vis that across
However, more than half of this pool is focused on AI. To unlock more
other leading DeepTech startup ecosystems
of its DeepTech potential, India needs a talent pool that works at the
intersection of AI with other technologies or disciplines like blockchain,
Research and Regulatory quantum, robotics, and IoT among others.
Talent Strength Access to Capital R&D Infrastructure
Development environment
United States Venture Capital firms believe owning IP

United Kingdom rights is a qualifying criteria important
to a DeepTech startup. However, nearly
Canada
France
>80% 40% of startups reported not employing
an IP strategy on account of challenges
such as long patent filing timelines
Germany
which are a result of insufficient
India machinery at patent offices in India.
Israel
Japan
Startups reported access to regulatory
Switzerland
sandboxes is a pertinent action to be
Low High
>70% taken by the government to accelerate
Relative parameters Intensity
DeepTech R&D
Note: China has not been considered in the evaluation in this section on account of limited availability of data.
Source: QS Global 500 ranking, Pitchbook, IMD Competitiveness 2023, GEM 22-23, OECD Observatory, WIPO, World Bank, Draup, UNESCO Institutes of statistics,
nasscom-Zinnov DeepTech survey 2023

02
Indian DeepTech
Startup Landscape

Snapshot of the Indian DeepTech startup Ecosystem 2023
Overall Tech Startup Landscape 2023 Startup Inception Trends 2023 Funding Trends
31,000+ 950+ USD 6 Bn+

Total Tech startups 1
New Tech startups added in 2023 Total funding in Tech startups2
3600+ 450+ USD 850 Mn+

Total DeepTech startups New DeepTech startups added in 2023 Funding in DeepTech startups
~500+ 100+ USD 40 Mn+

Total Inventive DeepTech startups New Inventive DeepTech startups Funding in Inventive
added in 2023 DeepTech startups
Note: (1) For this report, we have considered startups founded between 2014-2023 (2) For this report, we have considered funding rounds raised by Tech startups between 2014-2023.
Source : Zinnov Research & Analysis

Indian DeepTech ecosystem has startups operating across a range of sectors… Illustrative
Health Tech Environment Tech Space & Defense Automotive
Retail Tech Enterprise Tech
BFSI
Agri-Tech
EdTech
Industrial & Manufacturing Cybersecurity
Source : Zinnov Research & Analysis, nasscom

…tackling problems of strategic importance for India, just like their global counterparts
By embracing DeepTech, India can address its unique challenges, leapfrog traditional development models, and emerge as a global technological leader. With its vast pool of talent and
growing entrepreneurial ecosystem, India has the potential to become the next hotbed for DeepTech innovations.
1 Solving India’s unique challenges Illustrative startups and solutions exhibiting Indian DeepTech ecosystem
With a rapidly growing population projected to reach 1.6 billion by 2050,
potential
India faces a unique set of challenges. Resource scarcity threatens water
security and food production, while energy insecurity hinders sustainable Clairco provides AI Ishitva provides
development. Beyond these, issues like inadequate sanitation and and IoT-enabled AI and robotics-
HVAC systems for enabled waste
persistent hunger demand innovative solutions. Kritsnam provides IoT-enabled
energy management segregation
water management solutions
and air purification solutions
2 Boosts economic competitiveness
India needs to modernize its infrastructure and industrial practices to UptimeAI provides
compete globally and achieve economic aspirations. By bypassing a deep learning and
NeeWee provides an AI- AI based predictive
outdated practices, India can establish itself as a leader in innovative GetVu provides AR-enabled
enabled production planning maintenance solution
and efficient manufacturing, address labor challenges, upskill the smart glasses to improve worker
solution with real time for industries
workforce, and meet global demands for sustainable practices. productivity and enhance
responsive rescheduling
collaboration
2 Bridges the digital divide

Veative Labs provide
India faces a vast digital chasm separating its bustling urban centers
an interactive AR/VR
from millions residing in remote villages. This disparity hinders access Cloudphysician provides smart- learning solution
HealthPlix provides a virtual
to crucial services like healthcare, education, and basic internet ICU solutions with AI-powered
clinic solution with EMR
connectivity. Building a digital bridge for the next generation is critical. automation and analytics
integration to enable healthcare
in remote areas
Source: Water.org, Global Hunger Index, PIB Delhi, Zinnov Research and Analysis

CY 2023 saw the number of new DeepTech startups in India more than double over that in 2022, primarily due to a sudden
growth in the number of AI-backed DeepTech startups
Cumulative number of DeepTech startups by calendar year Distribution of DeepTech startups, by Dominant Technology1
~ 2X growth in number of 2%
startups founded in 2023 7% 4%
6% 10%
12% 5%
18% 23%
481
17%
215
3600+
3180+
2950+
2600+ AI
2120+ 74%
Big Data and Analytics
62%
IoT
Blockchain
AR/VR
2014-2019 2020 2021 2022 2023
Others 2
2014-2022 2023
Number of startups incepted in a calendar year
Note: (1) Total does not add to 100% as a DeepTech startup can leverage multiple technologies simultaneously to create products/ solutions (2) Others includes 3D Printing, Drones and Robotics

While the number of new DeepTech startups saw a 2X increase in 2023, the number of new inventive DeepTech startups grew
by ~3X during the same period
Number of inventive startups founded

Of the inventive DeepTech startups are utilizing artificial intelligence as
125 64% their primary technology, catering to key sectors such as Enterprise Tech,
Health Tech, and Agri-Tech
Top sectors for inventive DeepTech startups
Top Sectors Key application area Illustrative Examples
AI based Vision Inspection Platform, Drone analytics

Enterprise Tech
platform, Edge data processing
Real time patient monitoring and Diagnostics, AI based

Health Tech
decision support systems
45
Industrial &
Robotic vision systems, 3D printing, Edge IoT sensors
Manufacturing
AI based smart monitoring solutions for crops and

Agri-Tech
cattles, Farm bots
2022 2023
Earth observations, Environmental monitoring, Space
Space & Defense
launch vehicles
Source: Zinnov Research & Analysis

Presence of a strong network of TBIs1 and DeepTech talent remains a key factor steering majority of the new DeepTech
entrepreneurs towards established hubs...
2600+ DeepTech startups in established hubs, with 300+ new DeepTech Startups incepted in 2023
Established hubs2 Illustrative List

Bengaluru Hyderabad
(100+) (20+)
13 39 950+ Added in
2023 9 8 280+ Added in
2023
Delhi NCR Chennai

(80+) (20+)
Added in
10 31 650+ 2023 8 3 200+ Added in
2023
Mumbai Pune
(30+) (10+)
6 26 370+ 6 4 180+
Added in Added in
2023 2023
TBI Non-academic I/A3 No. of startups4
Note: (1) TBI refers to Technology Business Incubators which includes Academic Institutions which offers Incubators/Accelerators program for startups (2) Established hubs refer to
Bangalore, Mumbai, Delhi NCR, Hyderabad, Pune and Chennai (3) I/A: Incubators/Accelerators (4) For this analysis, we have considered start-ups founded between 2014-2023

…yet, the number of new DeepTech startups getting incepted in emerging hubs grew by ~2X to 110+ in 2023, highest in 5
years
Factors such as expanding talent pool, cost advantages over Tier 1 cities, supportive incubators/accelerators, government initiatives such as
Accelerate Bharat, K-Accelerator, etc., and technology-focused policies are accelerating DeepTech innovation in emerging hubs
Emerging hubs1 Illustrative List

Ahmedabad Kolkata
(10+) (5+)
8 4 75+ Added in
2023
1 1 35+ Added in
2023
Jaipur Trivandrum
(10+) (~2)
Added in Added in
2 1 50+ 2023
3 1 30+ 2023
Kochi
(3+)
Added in TBI3 Non-academic I/A3 No. of startups2
1 1 25+ 2023
Note: (1) Emerging hubs refer to Indian cities other than Bangalore, Mumbai, Delhi NCR, Hyderabad, Pune and Chennai (2) As of 2023 December (3) TBI refers to Technology Business
Incubators which includes Academic Institutions which offers Incubators

Nasscom’s DeepTech Initiative has been working towards nurturing and promoting world-class Indian DeepTech startups
across both established hubs and emerging hubs
300+ 280+ ~10 180+

Startups Active Startups Partners Mentors
Impact Created Technologies Supported Locations Covered
More than $200 Mn
1
Funding raised by DeepTech startups 12%
4%
Distribution of Portfolio Startups
5%
70+ 80+
Bootstrapped Seed Funded
5%
10+ 4+ 7 6%
59%
Series A Series B M&As
9%
Distribution of active
2
4200+ Hours startups by location
Personalized Mentoring
Tier 1 – 240+
Tier 2/3 – 25+
5100+ AI/ML/DL/NLP/ Computer Vision Cloud Blockchain
Connects
Industry 4.0/IoT AR/VR/MR Others* Present only Overseas – 10+
Drone/Robotics
Note: Other technologies include 5G, Quantum Computing, Big Data, 3D printing, Li-Fi
Source: nasscom

Global slowdown reflected in the Indian DeepTech startup funding which declined by ~77% in 2023…
Key Reasons for Decline in Funding in 2023

Funding raised by DeepTech startups (2019-2023)1
362 Total number of investors participating in funding rounds dropped by more than 60% in 2023 over
2022. The absence of many large global investors who had driven funding in previous years also
316
contributed to the decline in funding.
256 270
220 Median ticket size across seed-stage and late-stage reached their 4-year low and 5-year low
respectively. Although early-stage median ticket size reached a 5-year high, it was not enough to
offset the overall decline in funding
3.7
2.6 >70% of seed-stage DeepTech startups report preferring funding from VC, PE and corporate
1.6 investors. However, with changing priorities, increasing selectiveness, and elongated timelines,
1.3 funding deals have failed to close across sectors.
0.85
2019 2020 2021 2022 2023 The absence of mega deals2 in 2023 as compared to 9 mega deals in 2022, underscores a
Funding raised (in USD Bn) No. of funding rounds declining investor emphasis on large-ticket investments.
Note: (1) For each calendar year, funding rounds of startups founded in a 10-year timeline are considered for analysis. For instance, for CY 2023, funding
rounds of startups founded between 2014-23 are considered for analysis. (2) Mega deals are deals over USD 100 Mn.

…with early and late-stage deals observing a decline of more than 60%
Seed-stage DeepTech funding (2019-2023)1 Early-stage DeepTech funding (2019-2023)1 Late-stage DeepTech funding (2019-2023)1
113
213 222 216 27
22
179 81
146 18
64
56 13
262 1539
45 1920
193 191 1032 1406 9
105 618 725 865
82 430 511 152
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
Funding raised (in USD Mn) No. of funding rounds
Following the overall funding trends, number of funding deals and funding volume declined across all stages. Investors continued investing in seed-stage DeepTech
startups with low ticket sizes and relatively lower risk.
Note: (1) For each calendar year, funding rounds of startups founded in a 10-year timeline are considered for analysis. For instance, for CY 2023, funding rounds of startups founded between 2013-23 are considered for analysis.

Although median ticket sizes in seed and early stages have been following a similar trajectory across both Tech startups and
DeepTech startups, those in late stages are significantly lower across DeepTech startups
Seed-stage Median Ticket Size, USD Mn Early-stage Median Ticket Size, USD Mn Late-stage Median Ticket Size, USD Mn
(2019-2023) (2019-2023) (2019-2023)
8% 16% 147%
- 11% 0%
9% 7% - 13%
- 6% - 7%
- 22% 6%
- 45% - 41% - 58%
0.75
8.5
8.5
8.1
0.7
0.64
70
7.5
0.56
0.6
0.6
0.55
6.5
7
53
0.5
50
5.4
47
41.3
4.5
5
0.34
0.32
30.1
4
24
19
13.2
12.5
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
Tech Startups DeepTech Startups % Change in Deeptech Tech Startups DeepTech Startups % Change in Deeptech Tech Startups DeepTech Startups % Change in Deeptech
Average time taken for investments to mature Seed-stage investments: 1% lesser time to mature across DeepTech startups
also varies between Tech startups and DeepTech Early-stage investments: 73% more time to mature across DeepTech startups
startups: Late-stage investments: 14% more time to mature across DeepTech startups
Note: For each calendar year, funding rounds of startups founded in a 10-year timeline are considered for analysis. For instance, for CY 2023, funding rounds of startups founded between 2013-23 are considered for analysis.

AI continued to be a major focal point for investors with 86% of the startups with AI as one of the enabling technologies
receiving funding in 2023
Illustrative
Share of funding raised by technology 1
Key startups raising funding in 2023
86% Artificial Intelligence

Platform that enables users to develop AI-based diagnostic platform and AI and cloud-based digital
and evaluate GenAI apps device for cardiac diseases lending platform
AI-based
In 2023, there was a 3x increase in DeepTech startups connectomics for
in this space due to its effective integration in business functional brain
AI solution for automating IT AI and cloud-based debt
workflows and ability to drive tangible outcomes. mapping
workflows and HR support collection platform
New products and solutions have demonstrated their
utility across diverse fields, including content review
and summarization, e-commerce and marketing,
customer support and engagement, and software AI-based carbon accounting and Scales AI for real-world applications Brain modulation devices for
development tools. report management platform by building models of generalizable neurological conditions
intelligence
With the supportive government policies, increasing
interest, and exponential growth of Gen AI, Artificial AI-based platform for
AI-enabled fintech
Intelligence witnessed a rapid growth in interest in vision assessment and
infrastructure for banking
2023, which reflected in the share of funding raised. AI-enabled enterprise search solution therapy
products
Note: (1) Total does not add to 100% as a DeepTech startup can leverage multiple technologies simultaneously to create products/ solutions leading to repetition of the funding round across technologies.

Other technology themes such as Internet of Things and Robotics also gained prominence across various sectors.
Illustrative
Share of funding raised by technology1
Key startups raising funding in 2023
Vibration monitoring AI-based early warning IoT & AI-enabled

14% Internet of Things solution for the system and connected operational insight
manufacturing industry bed technology solution
Robotic kitchen and Autonomous electric

automated solution for cargo vehicles for
Robotics 5% food preparation material handling and AI-based healthcare diagnostic
picking solution
Cloud-based multi-
utility drones for
industrial application SaaS platform to cater end-to-end Designing and development of
3% Drones
drone solutions eVTOL aircraft with hydrogen
propulsion systems
Blockchain-based
digital identity
Blockchain 5% and credentials
Blockchain-enabled insurance claim Platform for development and
management solutions launching decentralized apps
settlement platform
Note: (1) Total does not add to 100% as a DeepTech startup can leverage multiple technologies simultaneously to create products/ solutions leading to repetition of the funding round across technologies.

VC participation continues to be the highest among institutional investors, with their share in the investors’ mix reaching
80% in 2023
Share of Total Institutional Investor Participation, by Type Illustrative startups funded by VCs in 2023
CVC2 Gen AI-powered sales agent that automates leads qualification, and personalizes
PE1 5% conversations to allow businesses to close deals faster
4%
Corporate
11% XRAY, a data product, purpose-built for institutional investors to allow them to
better analyze data, uncover hidden stories, and make better investment decisions.
A proprietary edge device and AI platform that streamlines production planning,

and offers cross-fleet monitoring capability across mining, logistics, highway, and
material handling industries.
One-click solution for metal 3D printing needs that allows users to simply upload
their 3D CAD model, click print, and monitor their prints effortlessly.
VC
80% A provider of Make in India drones for Consumers, Agriculture and Defense sector. It
is also India’s first company to provide Plug and Fly FPV drones.
Note: (1) PE: Private Equity, (2) CVC: Corporate Venture Capital

Corporate investors accounted for the second largest share in the mix, while Private Equity and Corporate Venture Capital
investors had a somewhat equal degree of participation
Illustrative
Startups funded by Corporate Startups funded by Private Equity Startups funded by Corporate Venture
investors in 2023 investors in 2023 Capital investors in 2023
Startup Description Startup Description Startup Description
India-based drone manufacturer and AI-based port automation solution

cutting-edge drone service provider that offers real-time asset detection, Developer of Hyperspectral imagery
stacking, and alerts satellites and space data analytical
tools
Provider of SaaS-based factory
reliability solutions to hyper scale Provider of drones and cutting-
maintenance programs edge services for a range of sectors
including Agri-Tech, defense, and
Provider of Big Data & Artificial Industry 4.0 A fintech-based agri platform which
Intelligence-enabled autonomous nurtures farm entrepreneurship, and
stock advisory platform helps in minimzing risks
Provider of AI-based satellite
remote sensing solution for global
Provider of AI-based virtual cardiac sustainability challenges
diagnostic tools and services
Provider of IoT-based smart wearables Developer of AI-based connectomics

A digital-first distribution platform and safety products for blue-collar to generate personalised brain maps
based on Plug and Play model workers

The number of M&A deals in the Indian DeepTech startup landscape declined by around 45% in 2023, with focus shifting
from building new tech capabilities to product and market expansion
Distribution of 2023 M&A Deals, by reason Key Highlights of DeepTech M&A Deals in 2023
for acquisition
In 2023, M&A deals for building tech capabilities decreased. This shift is attributed to Indian corporates
and startups redirecting their attention from developing new tech capabilities to bolstering existing
N=56 N=31
2%
offerings and solidifying their position in the current market landscape
13%
29%
Enterprise Tech and BFSI emerged as the sectors with the highest number of M&A deals in 2023. The
52% 35% majority of startups acquired within these sectors primarily focus on Artificial Intelligence as their core
expertise
58% Illustrative
48%
Strategic
M&A focused
2022 2023 for AI Adobe will integrate Rephrase’s tech stack Lenskart aims to utilise visual AI technology
Acquihire Market Expansion Building Tech Capabilities capabilities and generative AI video capabilities with its to enhance both the store and product
in-house video-editing platform experiences
Product Build Tech Market

Portfolio Capabilities
Acquired to strengthen its customer Acquired to enhance data capabilities & Expansion Acquired to enhance its ecosystem to
Expansion
experience and automating sales autonomous manufacturing meet diverse global AdTech demands
Note: Percentage does not add up to 100% as a deal can have multiple reasons. For CY 2023, M&A rounds of startups founded between 2014-23 are taken for analysis throughout the report

Top-tier academic institutions are driving grassroot-level DeepTech innovation; however, more concerted effort is required to
drive such programs across across tier 2 and tier 3 institutions
Over 500 DeepTech startups have been nurtured by Top A thriving ecosystem is enabling DeepTech innovation across
501 Incubator and Accelerator programs in India India’s top universities
Government initiatives like Nidhi Prayas, Nidi EIR, and TIDE 2.0 provide
50% of these crucial financial and operational support for DeepTech startups. TIDE 2.0
DeepTech I/A focus on scheme is mentioned the most among the Top universities for financial aid.
Total I/A2 in Top 50 Enterprise Tech and
universities in India Health Tech
Samsung has set up eight Samsung Innovation Labs in IIT-Delhi, IIT-Kanpur,
80% of these IIT-Hyderabad, IIT-Kharagpur, IIT-Roorkee, IIT-Guwahati, IIITDM-Kurnool,
DeepTech I/A focused and IIT-Jodhpur as part of its Samsung Innovation Campus program.
on Artificial Intelligence
70% and Internet of Things

IIIT H Foundation’s Centre for Innovation and Entrepreneurship (CIE) is
Have DeepTech
focused I/A2
63% of the India’s leading DeepTech incubator. Boasting over 80 startups within its
DeepTech I/A have walls, CIE fosters innovation by nurturing promising DeepTech ventures.
partnered with leading
corporations for R&D
support IIT Madras Research Park has been one of the most preferred research
parks among corporates. Over 60 corporates have worked with them till
date.
Note (1): Top 50 Universities from AICTE India ranking. (2) I/A: Incubators and Accelerators
Source: Samsung Global Newsroom, IIIT H CIE Website, IIT Madras research park, Zinnov Research and Analysis

Key Academia and Corporate incubator and accelerator programs
Key Academia-run I/As Illustrative List Key Corporate-run I/As Illustrative List
Host Institute Name of the I/A Startups Nurtured Company Name of the I/A Startups Nurtured
IIM, Entropik, vPhrase, BELLATRiX Aerospace, The Flipkart

IIMA Ventures Flipkart Leap Ahead (FLA) Dopplr.digital, NeuroPixel.AI, LivWell
Ahmedabad Agnikul, Mestastop Group
IIT, Madras IITM Incubation Cell QNu Labs, Uniphore, DocsApp, ePlane.ai Cisco Cisco LaunchPad Pinmicro, Senseforth.ai, Satsure, Skit
Pilani Innovation and Google for startups Vitra.ai, Intello Labs, Sigtuple,
BITS, Pilani Entrepreneurship Development Nawgati, Valerio, UrbanTrack, Nanobrid Google
Accelerator: India Metadome, Magnifi, Niramai
Society
ISB, NeuroPixel.AI, Deepcytes, the moe, Facebook + India Innovation Hub Detect Technologies, Neuralsync, Signzy,
DLabs Incubator Association T-Hub Accelerator program Drishte
Hyderabad SatSure
Society for Innovation and Arishti CyberTech, peppermint robotics, Microsoft Microsoft for startups Perplexity AI, Pinecone, Deepbrain AI,
IIT, Bombay
Entrepreneurship (SINE) Babblebots AI, Emertech Innovations India Founders Hub GYTPOL, BeeKeeper AI
Vecros Technologies, Andromeida Qualcomm Design in India Ayati Devices, Rymo Technologies,
Foundation for Innovation and Qualcomm
IIT, Delhi Maritime, Compiler AI, Mobisec Program SIAMAF Healthcare
Technology Transfer (FITT)
Technologies
Addverb Technologies, SwitchOn, QNu
startup Incubation and Perception.AI, Arthavedika, BlockStash Intel Intel startup Program
IIT, Kanpur Labs, Qure.AI, CynLr
Innovation Centre Intelligence, HACK-X Security, EndureAir
NXP Semi- Semiconductor startup Smartkosh Technologies, Droame LLP,
IISc, STEM Innovation conductors + Incubation and Acceleration Smartway Electronics, Pramatra Space
Mimyk, Pathshodh Healthcare, SImyog
Bengaluru Entrepreneurship FABCI Program Technology
IIM, Grey Orange, Awiros, CloudSEK,

NSRCEL Personifwy, CultYvate NVIDIA NVIDIA Inception
Bengaluru Nextbillion.ai, Innoplexus, Locus
Source: nasscom research

Deep technologies such as Artificial Intelligence, IoT, and Neurotechnology have been driving the IP advancements in
India…
Distribution of Number of DeepTech Patent Distribution of patents for top uses cases across AI, IoT, and Neurotechnology
Families by Technology
Image Processing 139
Natural Language Processing 107
1%
3% 12% Predictive Model 79
3% ML Model-based Computational Arrangement 59

4% Generative AI 48
41% Medical Data Processing 47
6%
Emotional Recognition-Embedded IoT Devices 44
6% Cognitive Computing 37
Self Organizing Maps for IoT Anomaly Detection 35
6%
Edge Computing 28
9% 9%
Neurostimulation 23
Neuromorphic Computing 17
AI IoT Neurosymbolic Computing 16

Neurotechnology Advanced Material & Nanotechnology Optoacoustic Imaging for Neurological Studies 14
Communication Technology AR/VR
Blockchain Advanced Robotics & Autonomous Systems Brain Machine Interface for Augmented Cognition 14
Cloud Computing Quantum Computing Neuro-optogenetics 14
Others
Note: Analysis is done basis country of Origin. Patent analysis is done on a sample et of 400 DeepTech startups. The patent filing data analyzed spans from 2014 to 2023.
Source: Sagacious IP Research and Analysis

…with top patent filing companies showing a high degree of inclination towards these technologies Illustrative
Key Focus Areas Key Focus Areas
25+ Blockchain, Communication

30+ AI, IoT, Advanced Material and
Patents filed Technology Nanotechnology, Neurotechnology,
Patents filed
AR/VR
AI, IoT, Blockchain,
40+ AI, IoT, Advanced Robotics and
Neurotechnology, Cloud
Patents filed
Computing 30+ Autonomous Systems, Advanced
Patents filed Material and Nanotechnology,
Cloud Computing, AR/VR
40+ AI, IoT, Neurotechnology,
Patents filed AR/VR
AI, IoT, Advanced Material and
15+ Nanotechnology, Neurotechnology,
15+ AI, IoT, Blockchain, Cloud
Patents filed Cloud Computing, Communication
Patents filed Computing, Communication
Technology
Technology
10+ AI, Neurotechnology

AI, IoT, Blockchain, Quantum Patents filed
15+ Computing, Advanced Material and
Patents filed Nanotechnology, Cloud Computing,
Communication Technology
15+ AI, IoT, Advanced Robotics and
Patents filed Autonomous Systems, Neurotechnology,
Cloud Computing, AR/VR
Source: Sagacious IP Research and Analysis

There has been a significant shift in investments towards sectors with strategic importance, with four sectors moving up in
ranking relative to others Illustrative
Space & Defense Health Tech Automotive Industrial & Manufacturing

Key Funded startups Key Funded startups Key Funded startups Key Funded startups
Key Trends Key Trends Key Trends Key Trends

50+ DeepTech Space & Defence 250+ Health Tech startups ~59% of the automotive 140+ DeepTech Industrial &
startups founded over the last 10 founded in the last 10 years1 DeepTech startups are funded Manufacturing startups founded
years1 over the last 10 years1
50% Health Tech startups are 30% of the automotive
USD 115 Mn funding raised by funded DeepTech startups in India 48% of the industrial and
DeepTech startups in the sector are currently focusing on the manufacturing DeepTech startups in
in 2023 electrification of vehicles India are focused on Optimization

03
Indian DeepTech
Startup Ecosystem
Challenges

While India’s DeepTech startups showcase a dynamic landscape, tackling diverse challenges with a blend of scientific
expertise and emerging technologies…
Approaches to Market Validation

Diverse Technology Focus
Indian DeepTech startups are executing
DeepTech startups are working towards
various strategies to overcome the challenges
addressing a variety of challenges. This is
associated with commercialization.
getting achieved by their focus on multiple
These strategies include participating in
DeepTech areas and ability to develop novel
global challenges, conducting PoCs with
solutions to address the challenges.
corporations, emulating systems, or forming
strategic partnerships.
Multi-Pronged Approach to funding

Tackling Real-World Challenges Key
After the MVP stage, many DeepTech
Many DeepTech startups are demonstrating characteristics startups seek funding through collaborations
the potential to address critical challenges of DeepTech with corporate or academic incubators/
not just across industries, but also among accelerators to foster research. They also
societies people live in. startups pursue government grants tailored to their
niche areas for further support.
Embrace Partnerships for Scaling

Strong scientific foundation
The key to growth strategies for DeepTech
Indian DeepTech startup founders exhibit
startups lies in forming strategic partnerships,
impressive scientific prowess, with many
expanding product offerings that offer
holding doctorates/masters’ degree
tangible business value, and targeting global
in relevant fields, showcasing a deep
markets
understanding of the underlying technologies.
Source: Zinnov Reseach and Analysis

…Indian DeepTech startups see lack of funding for scaling their business as the biggest challenge
Top 3 Challenges faced by startups in DeepTech innovation and collaborating with ecosystem stakeholders, by share of respondents
Challenges faced by startups in DeepTech innovation Challenges faced by startups in hiring and retaining talent
70% 70%
41% 64%
40% 61%
High salary expectations Limited Supply of Competition from large

Funding for scaling Talent attraction and Global expansion professionals skilled in enterprises for adequately
retention DeepTech skilled talent
Challenges faced by startups in collaborating with enterprises Challenges faced by startups in collaborating with academia
62%
82% 61%
68% 65%
56%
Long sales cycles Operational/bureaucratic PoC Implementation

Aligning research goals Securing funds/grants Finding the
challenges
right mentors
Source: nasscom-Zinnov DeepTech survey 2023

DeepTech-focused academia struggle with getting funding for supporting their projects beyond initial stages, while investor
community continues to be cautious due to long gestation periods
Top 3 Challenges faced by VCs, Enterprises, and Academia, by share of respondents
Challenges faced by venture capital firms Challenges faced by enterprises in Challenges faced by academia in DeepTech
while investing in DeepTech DeepTech innovation innovation
Sustained funding for

Long gestation periods of 73% Talent attraction and 60%
69% projects beyond
DeepTech startups retention initial stages
Establishing
Navigating collaboration 64% 60%
IP and data management 56% collaboration with
dynamics with enterprises
industry partners
Formulating effective exit 55% Integrating DeepTech Funding in

40%
strategies innovation into existing 50% infrastructure
business

Required government interventions as indicated by ecosystem players

Top 3 required interventions/policy changes for VCs, startups, Enterprises and Academia, by share of respondents
Government interventions Government interventions for Government interventions Government interventions

for VCs to ease investment in startups to accelerate DeepTech for enterprises to accelerate for academia to accelerate
DeepTech startups R&D and GTM DeepTech R&D and GTM DeepTech R&D and GTM
Establish co-investment Provide grants/access to Facilitate platforms that connect Increase funding allocation for
programs with VCs for regulatory sandboxes to prototype enterprise with DeepTech DeepTech research
DeepTech startups and test startups
Introduce government backed Facilitate platforms that connect Introduce tax credits for R&D Provide financial and logistical
instruments DeepTech startups with enterprises expenditure support for commercialization
Simplify regulatory processes Introduce tax credits for DeepTech Launch DeepTech focused skill Launch programs and incentives
related to VC investments R&D expenditure development programs for industry collaboration
Startups reported Tide 2.0, startup India Seed Fund, NDTSP, and Enterprises reported Make in India, DPIIT schemes, and
initiatives by various research assistance bodies such as BIRAC schemes by DeepTech research assistance bodies have been the
have been the most beneficial government initiatives. most beneficial government initiatives.

04
Unlocking
Future Growth:
Recommendations

Government’s support for Indian DeepTech startups so far
In the interim budget, the government Announcement of India AI mission to accelerate

also promised a new scheme that will R&D in AI startups by offering a favorable investment
fuel the deployment of DeepTech in the environment to the sector.
defence sector 01
07 Allocation of Rs 10,372 crore for 5 years for the India
AI Mission to fuel AI innovation through public-private
Funding of around INR 500 crore for the Innovations for 02 partnerships (PPPs). Of this, the government has earmarked
Defence Excellence (iDEX) scheme spread across five years Government’s close to Rs 2,000 crore for financing DeepTech startups.
from 2021. The objective of the scheme is to offer financial support for
06 Indian DeepTech
support to startups, MSMEs, individual innovators focused on
innovation in defence technology, while connecting them to
startups
The government is in final stages of developing a
incubation facilities. 03 dedicated policy for DeepTech startups, with plans to
release a dedicated fund-of-funds for the sector soon
05 after the policy release.
Extension of tax benefits, including 100% tax
exemption for initial three years, to startups on 04
investments made by sovereign wealth or pension
Announcement of a mega corpus of Rs 1 lakh crore to
funds till March 2025.
provide long-term, low-cost or zero-interest loans to boost
R&D in the sunrise sectors.
Source: nasscom

Recommendations (1/2)
Identify and strengthen Provisions for patient Implementation of National

Innovation clusters capital DeepTech startup Policy (NDTSP)
Establish sectoral innovation hubs that bring Ensure flexibility in funding terms and structures to Develop a comprehensive roadmap for the
together the R&D infrastructure and domain accommodate the unique needs and timelines of effective implementation of key provisions
sector, academia, government together with DeepTech ventures, which often require significant outlined in the draft National DeepTech Policy
DeepTech startups. To begin with focus could be time and resources to develop breakthrough (NDTSP), including measures to incentivize
on 5 focus sectors: technologies. research and development in DeepTech sectors.
Medical Devices Collaborate with financial institutions and venture Establish monitoring and evaluation mechanisms
Space capital firms to create investment vehicles focused to track the progress and accountability.
on providing patient capital to DeepTech startups,
Defence Continuously review and update NDTSP provisions
mitigating the risk aversion typically associated
in response to evolving market dynamics,
Agriculture with early-stage investments in highly innovative
technological advancements, and feedback from
ventures.
Manufacturing stakeholders
Each cluster should have defined priorities that
address Inda specific solutions and build IP for
global opportunities
Source: nasscom

Recommendations (2/2)
Strengthen the supplier Create computing

ecosystem infrastructure capabilities
Foster partnerships between DeepTech startups and local suppliers to build a In line with the draft National DeepTech Policy (NDTSP), establish dedicated
resilient ecosystem for sourcing components, materials, and services required research and development facilities equipped with high-performance
for product development. computing resources, simulation tools, and testbed environments to enable
Facilitate access to financing and capacity-building support for local suppliers DeepTech founders to conduct experimentation and prototype development.
to enhance their capabilities. As stated in the IndiaAI mission, establish and provide affordable access to
Establish collaborative platforms like online marketplaces to streamline the computing resources and software platforms tailored to the needs of DeepTech
procurement process and connect DeepTech startups with a network of reliable startups.
and cost-effective suppliers.
Source: nasscom

05
Indian DeepTech
Spotlight:
Case studies

Pioneering sustainable water solutions through innovative air-to-water technology
Problem Identification What worked for

Motivated by a drought-like scenario at their alma mater, Swapnil and Venkatesh founded Uravu in 2019
Inception and Uravu?
Navigating Early Hurdles
Ideation Despite numerous countries possessing air-to-water technology, its high production costs rendered it
Addressing a Real Problem
commercially unviable. Uravu’s initial goal was to reduce these costs
Uravu identified a major
challenge faced globally
Product Prototyping - water scarcity - and
developed a solution to
Innovation Constructed initially in their college, the first viable prototype underwent over two years of iterative
improvements, incorporating significant enhancements. directly address it.
and
Validation Product Validation
Received global recognition as a finalist in the Tata Group-backed Water Abundance XPRIZE challenge. Frugal Engineering &
Resourcefulness
Commercial Production The founders started
with a basic prototype
Uravu Labs initiates water production targeting premium clients in Bengaluru, producing 1,000-1,200 liters per day
using scrap materials,
Go-to-Market Production capacity Expansion
demonstrating feasibility
Planned to scale production to 10,000 liters/day within a year by overcoming operational challenges and
before seeking funding.
implementing efficient scaling strategies.
Early Product Validation
Winning the Water
Abundance XPRIZE
Exploring Diversification competition provided
Growth and Consideration is given to diversifying into beverage products such as tonic water, ginger ale, and flavored validation, funding and
Diversification water to maximize production capacity and revenue streams. recognition.
Source: Nasscom Zinnov primaries

Leading in sustainable satellite operations with advanced life extension and de-orbiting technologies
Problem Identification What worked for

Recognizing the growing demand for in-space life extension, repairs, and controlled de-orbiting, the founders
Inception and Inspecity?
conceptualized developing a CubeSat propulsion system about the size of a small tiffin box.
Ideation
Early Validation
Inspecity’s focus on
validating core technology
Product Prototyping via competitions like iDEX
accelerates recognition,
Innovation Inspecity will initially focus on developing three core technologies: propulsion system, robotic arm, and sensor suit.
investor interest, and
and Idea Validation iterative refinement.
Validation Inspecity successfully demonstrates the functionality of its propulsion technology, winning recognition in the
iDEX challenge. Phased Development with
Validation
Market Positioning Inspecity achieves smaller
milestones (CubeSat
Positioned itself as a satellite servicing startup offering satellite life-enhancing and deorbiting services.
launch, rendezvous test)
Go-to-Market Launch & Offerings
with validation at each
Inspecity’s initial lineup comprises Satellite Propulsion Systems, Robotics, Sensor Suites, and Satellite
stage.
Maintenance services. They will deploy their products on both ISRO platforms and standalone satellites.
Focus on a Problem
Inspecity’s targets the
pressing issue of space
Broder Vision debris, emphasizing the
Growth and InspeCity aims to construct space-based cities resembling O’Neill cylinders across the solar system, housing importance for DeepTech
Diversification up to 1 million people. They’ve set a target of deploying an orbital habitat by 2030 to showcase scalable startups to tailor solutions
technology for future multi-million population settlements. to specific market needs.

Redefining data security with pioneering quantum encryption solutions
Formation and Incubation

What worked for
QNu Labs, founded in 2016 at IIT Madras, by a team of experienced professionals, began its journey through
Inception and ideation, conceptualization, and initial research. QNu Labs?
Ideation Technology Development
The team focused on translating quantum principles into tangible security solutions, laying the groundwork for Innovation in Technology
subsequent stages of product development. QNu Labs’ has ability
to translate quantum
Product Prototyping principles into practical
Product QNu Labs dedicated resources to develop robust encryption mechanisms based on quantum mechanics, cybersecurity solutions,
Development producing prototypes for Tropos, Armos, and Hodos. showcasing the
& Market Product Validation importance of innovation.
Initiated market entry across banking, telecom, defense, and OEM sectors, with strategic partnerships
Entry Strategic Partnerships
established with Airtel, Bharat Electronics, and accelerator programs by CISCO and NetApp.
& Alliances
Product Refinement Forming strategic partnerships
QNu Labs refined its product portfolio based on market feedback, while scaling operations and production to meet with industry players and
growing demand. academic institutions enabling
Product Global Expansion and Funding QNu to penetrate markets and
Scaling Raising $6.5 million in pre-Series A1 funding facilitated global expansion plans, fueling growth and expanding enhance product capabilities
presence in key markets.
Scalable Product
QNu Labs prioritized
Innovation and Leadership Strengthening
scalable product
QQNu Labs remains committed to advancing quantum-based security through ongoing research and innovation, development to ensure
Future growth bolstering its leadership team and forming strategic partnerships. their quantum security
strategy National Quantum Mission (NQM) solutions could adapt to
QNu Labs aligns with NQM objectives, contributing to India’s emergence as a global leader in quantum evolving client needs.
technology.

Revolutionizing semiconductor design with dynamic reconfigurable chips
Formation and Incubation

What worked for
Founded in Nov 2005, Morphing Machines began its journey in the semiconductor industry, incubated within
Inception the Indian Institute of Science (IISc). Morphing Machines?
and Early DRDO Project Completion
Development Completed a project on cryptography ASIC architecture with DRDO Innovative Technology
Morphing Machines
developed a
Product Demonstration reconfigurable accelerator
Showcased its reconfigurable accelerator architecture at the 4th RISC-V workshop at MIT in July 2016, architecture for high-
Technology highlighting advancements in parallel image processing. performance across
Development Product Validation diverse applications.
& Recognition Gained recognition at the Hello Tomorrow Global startup Summit in Paris and Semicon India 2023, where they
showcased innovative technologies to Prime Minister Shri Narendra Modi. Strategic Partnerships
Collaborations with
Product Refinement technical partners and
Expedited product development, refining architecture for better performance. Optimized processes and built teams government agencies
to meet diverse needs. facilitated fast-tracking
Growth & Global Expansion and Funding development and securing
Scaling Launched a focused go-to-market (GTM) strategy for Edge AI and Telecom sectors with a refined product design wins.
portfolio by identifying clients and forging partnerships.
Market Penetration
Morphing Machines
Collaboration and Market Expansion
targeted key sectors like
Collaborated with technical partners and system integrators to fast-track their technology research. Additionally, the Edge AI and Telecom,
Future growth company is also planning to enter the US market via partnerships. with plans to expand into
strategy Long-term Vision the US market.
The long-term vision is to democratize semiconductor processor design by creating a single reconfigurable chip
for multiple applications.

Transforming industries through groundbreaking Edge AI innovation
Identifying the Potential of AI

What worked for
Gopichand and Ganesh recognize the transformative potential of AI and foresee its significance in future
Inception and technological advancements. Myelin Foundry?
Ideation Decision to Pursue Edge AI
In 2019, the duo decide to focus on Edge AI, aiming to decentralize computational processes and bring AI Identifying Emerging Trends
capabilities closer to where data is generated.
Myelin’s success lies
in their foresight to
Product Prototyping recognize the potential
Over three years, Myelin Foundry conducted thorough R&D, leading to 10 filed patents. Their tech, undergoes of AI, particularly Edge
Innovation stringent validation for real-world efficacy. AI, as a transformative
and Product Validation technology.
Validation Took part in NetApp Excellerator and won awards like,” NASSCOM “Emerge 50,” and by Analytics India
Magazine as one of the “20 Hottest AI startups in India 2022” Strategic Patent Filing
Myelin Foundry’s
Product Launch commitment to patent
Debuts with flagship products: Fovea STREAM for media, Fovea AUTO for automotive, and Fovea EDGE for industry. filing protects their
Offering a flexible pricing model catering to diverse needs. intellectual property and
Go-to-Market Customer Acquisition establishes barriers to
Securing $5.5 million in funding, the startup targeted global and Indian markets. It generated revenue through entry for competitors.
existing offerings and tailored solutions for clients.
Diverse Revenue Streams
Myelin Foundry’s revenue
Scaling and Penetrating Markets
model includes both
Experiencing steady growth, achieved nearly $1 million in turnover. With a substantial revenue share from global standardized products
Growth and firms, it prioritized entering new markets and customized solutions,
Diversification Focus on Innovation providing diversification
Continued focus on innovation, tackling emerging industry hurdles, investing in R&D, and utilizing partnerships and stability.

Revolutionizing sectors with cutting-edge advancements in AI and robotics
Conceptualizing Idea
What worked for
In 2019, Gokul and Nikhil laid the foundation of CynLr (Cybernetics Laboratory), through CapEx sale of vision
Inception and systems and robots, with AMC. CynLr?
Ideation Crafting CynLr’s Vision
Founders meticulously planned CynLr’s trajectory, shaping its focus on merging cybernetics with advanced
Strategic Partnerships
tech as they coin the name.
Partnering with industry
leaders like TVS
Technology Focus UVP Motors and Ford Motor
Technology Machine Vision, Re-inforcement Learning, Neuromorphic vision, with hierarchical contour depth Company validates
Robotics perception using auto-focus and convergence
Focus, UVP CynLr’s technology.
and Challenges Challenges Addressed
Neuromorphic vision and contour detection with depth information allow to grasp even reflective objects
Addressed without worrying about lightning variation. Auto-focus and convergence allow for depth perception of near and Investment in R&D
far objects.
Establishing HIVE
underscores CynLr’s
Product Launch commitment to innovation,
1. CLX-01 – Neuromorphic Vision System for Robotic Guidance ensuring it stays
2. CyRo – Multi-arm robot with intuitive vision for training free grasps ahead in technological
Go-to-Market Market Penetration advancements.
CynLr collaborates across sectors to solidify its standing as a premier provider of robotics and AI solutions.
Partnering with industry leaders such as General Motors, EPFL Switzerland, Maxon Motors, Corning Varioptic.
Focus on Market Needs
By developing solutions
Scaling Operations
that address specific
Plans to scale operations to meet growing demand by expanding HIVE, hiring more engineers, and streamlining market needs, such as
Growth and processes. enhancing robotic arm
Diversification Diversification and Expansion Plan versatility, CynLr taps into
Business Expansion into the US and Europe in 2024. Switzerland subsidiary already incorporated. Technology/ niche segments effectively.
Product expansion to Advanced Driver Assistance and Autonomous Navigation Use-cases

Transforming drug discovery with AI-powered innovations in pharmaceuticals
Conceptualizing Idea
What worked for
Peptris was founded at C-CAMP in Bangalore, tapping into the region’s biotech ecosystem. The founders
Inception and recognized the potential of AI in drug discovery to address industry gaps. Peptris?
Ideation Crafting the business model
The team devised a model to license novel molecules discovered using their AI platform, pepAI, focusing on
oncology, inflammation, and rare diseases.
Innovative Technology
Development of pepAI Peptris prioritizes
Product Peptris developed pepAI to expedite drug discovery by analyzing chemical libraries, achieving proof of concept addressing unmet
development by 2021. needs in drug discovery,
particularly in oncology,
and Securing Pre-Series A Funding
inflammation, and rare
Innovation By 2022, Peptris successfully secured Pre-Series A funding from Speciale Invest, further validating the potential
diseases.
of their innovative approach to drug discovery.
Focus on Undruggable Targets

With Speciale Invest’s backing, Peptris intensified efforts in AI-driven drug development, targeting undruggable Strategic Partnerships
areas.
Go-to-Market Product Commercialization Collaborations with
Through strategic collaborations within the biotech ecosystem, Peptris aimed to amplify its reach and establish investors like Speciale
partnerships to expedite the translation of its discoveries into viable treatments. Invest and leveraging
Bangalore’s biotech
ecosystem for support
enhance Peptris’ growth.
Growth and Long-term vision
The company’s long-term vision included progression into early clinical trials and the development of personalized
Diversification
therapies, underscoring its commitment to advancing precision medicine.

Revolutionizing customer engagement with cutting-edge conversational AI solutions
Conceptualization and Market Research

What worked for
Ankush conceives CoRover in 2016, recognizing the gap in the chatbot market. Identified early opportunities in
Inception and providing AI-driven chatbot solutions for industries, including travel, government, BFSI, FMCG, and more. CoRover?
Ideation Navigating Early Hurdles
Ankush, along with Manav and Kunal, co-founded CoRover. Developed initial chatbot prototype and Explored Technology Innovation
potential partnerships and collaborations with technology firms
CoRover’s focus
on proprietary
Technology Development and Differentiation conversational AI
CoRover innovated with video chatbot Yukimi to provide human-like one-on-one conversations, expanded technology sets them
Innovation language support and implemented real time analytics. apart.
and Client Acquisition and Proof of Concept
Validation Secured partnerships with clients like IRCTC, NPCI, and ITC. Received positive feedback and increased user
interactions. Strategic Partnerships
CoRover’s partnerships
Scaling Operations and Client Expansion with industry leaders
Scaled operations, diversified revenue streams with different pricing models tailored to client requirements, and contribute to their
achieved profitability in FY20. credibility and
Go-to-Market Strategic Partnerships and Market Penetration expansion.
Formed partnerships with Google, IIIT-D Foundation, and others. Leveraged awards and recognition, such as
Aegis Graham Bell and National startup Awards.
Market Penetration
CoRover’s success in
Product Diversification and Industry Expansion
penetrating diverse
Introduced new offerings, and expanded into BFSI, healthcare, and oil and gas industries. Continued innovation with industries highlights
Growth and BharatGPT, a large language model, further enhancing its capabilities in NLP. their adaptability.
Diversification Strategic Initiatives and Long-Term Vision
Formulated a long-term vision to become the world’s leading provider of generative AI-powered conversational
platforms, and planned expansion into retail and automobile industries.

06
Voice of the
ecosystem

Investor spotlight
VC firms need specialized expertise and resources to effectively Hence, these firms are taking a proactive approach, and
navigate the complexities associated with investing in Indian leveraging partnerships within the ecosystem to overcome
DeepTech startups challenges associated with investing in DeepTech startups
In multiple scenarios, it becomes very difficult to invest into DeepTech Forming strong collaborations with ecosystem bodies who can help startups
companies because: with GTM provide guidance for the same
The market the founders are solving for is very small Creating a strong network of experts who can mentor portfolio startups and
also guide the VC firm during technical and business due diligence
Technology readiness does not exist
Access to global network to conduct technology diligence is absent
- Blume Ventures - Speciale Invest
VC firms provide a holistic support to DeepTech startups, which goes beyond financial backing to include various strategic resources for
growth and success
IAN has a strong mentor / market We help with getting We get involved with product and We help startups in three key areas:
access model where we help the first few customers, GTM strategy. We also are able Access to advisors in the ecosystem
portfolio companies with strategy, product build-out, to cross leverage our learning’s
connects and help with ecosystem commercialization, and from each startup’s technology Access and introductions to follow-on investors
including debt for working capital getting co-investors to experiments to provide practical Constantly identifying IP within the companies
needs esp. for production without invest with us and after us guidance on what approaches are and helping them file for patents
founders having to dilute working / not working
- Indian Angel Network - Seafund - SenseAI Ventures - Ideaspring Capital

Ecosystem Focus
Given the multifaceted nature of Indian DeepTech startups, Enterprises are actively seeking opportunities to leverage
their founders are leveraging the power of synergies to address external innovation and expertise to drive innovation
challenges and boost growth
Working closely with customers, which are large and established names We are engaged in active collaborations with DeepTech startups in
in the industry, through strategic partnerships that gives us access to areas such as AI, cloud services, and software optimization, to name
their projects for pilots and real time feedback that can reduce the R&D a few. For instance, we recently formed a partnership with Gai.ai to
timelines, revenue advances and forward revenue commitment that helps develop personalized real-human videos to boost sales through this user
in reducing the fund gap and improving investor confidence. This also engagement layer. Another example is our use of ParkMyCloud services
helps in building trust with current and future employees. and Cloudability across our cloud operations to optimize expenses.
- Pace Robotics - Hindustan Unilever
Enterprises understand the significance of aligning with startups that possess not only innovative technology but also strong
foundational elements. This reflects in their approach to evaluating DeepTech startups for collaboration or investment
The criteria and processes used by a company can vary, but some common factors include:
Technological uniqueness and innovation Team Expertise Financial health and stability
Market Potential Commercialization strategy Collaboration fit (Business alignment)
IP Portfolio
- ARTech Unlimited

Note for the
readers

Definition of industry verticals
B2B Product companies targeting Horizontal solutions for Large Enables financial services, banking and insurance through
Enterprises / SMBs technology
Enterprise
E. G Data Analytics/AI/ML Platforms, Development Platforms, BFSI E.g. Online Banks, Financial Management Apps, Payment Management
Tech
Collaboration tools Productivity Applications, Customer Services, Big Platforms, Alternative Lending Platforms, Money Transfer Platform, Expense
Data/Cloud/Security Infrastructure, etc. Management, Investment Platforms, Cryptocurrency & Trading Platforms, etc
Provides technology platform for solving Healthtech problems Provides learning solutions & services through technology
EdTech
Health Tech E.g. Medical Solutions, Marketplace for Health Services, Health Lab E.g. Learning Apps, Test Preparation Tech, Education Advisory Platform,
Aggregators, Online Pharmacies, E-Diagnostics, Ambulance Aggregator, K-12/Higher education platforms, Language Learning Platforms etc.
etc. Tech companies engaged in supporting the travel and hospitality
Travel and industry
Tech-enabled companies supporting Human Resources Activities
Hospitality E.g. Hotel Booking Services, Travel Planning, Travel Packages Portal, Travel
HR-Tech Collaboration Community, etc.
E.g. Applicant Tracking systems, HR Management System, Candidate
Assistance & Sourcing, Recruitment Marketplaces, etc.. Tech-enabled companies providing simplified Transportation services
to users
Companies involved in production, manufacturing, sales and Mobility
services of motorised vehicles E.g. Car pooling, Self Drive Rentals, Two-wheeler taxi aggregators, Mass
Automotive Transit, Tech Enablers.
E.g. Electronic Engineering, System Integration, Automotive Maintenance,
Electric Vehicles, Automotive marketplaces, etc. Companies enabling Sales of goods and product online or
Integration of tech in offline markets
Tech-enabled companies supporting Real Estate, Property
Real Retail and E.g. Products/Services cutting across several verticals -. Fashion & Lifestyle
Management & Construction industry
Estate and Retail Tech Marketplaces, Online grocery & Home essentials platforms .Also includes
E.g. Construction design tools, Building Technology, Real Estate Retail enablers, B2B marketplaces, Social commerce platforms, Rental
Construction
Management, Security, Smart Home & cities enablers. platforms etc

Engaged in manufacturing of tech-enabled devices or machines; Tech-enabled companies supporting the Foodtech industry
Construction/Mining sector, etc.
Industrial and
E.g. IoT based Predictive Maintenance of Machines, 3D Printing Foodtech E.g. Online Food Ordering, Restaurant Management Cloud Solutions, Food
Manufacturing
(Manufacturing) Discovery Platform
Provides content for entertainment across the web and mobile Enabling tech in logistics services and supply chain management
medium SCM and
Media and
E.g. News & Media Apps, Live Streaming Apps, News Platforms, OTT Logistics E.g. Logistics and Distribution Platform, Fleet Management, Warehousing,
Entertainment
Content, Video Intelligence Apps, etc. IoT Platform for Logistics, IoT Platform for Transportation Marketplace,
Tech Innovation and facilitation in the Gaming Industry

startups engaged in tech enablement in the Agricultural Industry
Gaming
Agri-Tech E.g. AR/VR Gaming, Community platform Games, Fantasy Gaming
E.g. Field Surveillance, Precision Agri-Tech, Farm infrastructure, Soil
Platforms etc.
Testing, Farm Input E-Commerce etc
Tech-based companies for Legal help to Individuals/Corporates
Tech-based companies supporting the Marine, Defense, Space,
Space & and Aviation Industry
Legal Tech
Defence E.g. Contract Management, Brand Protection and Anti Counterfeit, Legal
E.g. Military Drones, Green Propulsion Systems developers, Sensors and
Services Discovery/Booking marketplaces, etc.
Platforms for security applications etc.
Tech Enablement for Natural Resource Management and Provides direct advertising and marketing assistance through
Utilisation
Advertising technology
Energy and and
Utilities E.g. Renewable Energy products, Recycling of Resources, Energy Marketing E.g. Content marketing, influencer marketing, Push notifications etc.
Production and Distribution, EV charging Infrastructure etc.

Tech-enabled companies providing concierge services Includes Hardware, Software solutions for security and
surveillance applications in Home, Enterprise and Govt institutions
Professional Security and
Services E.g. Home repairs, auto servicing, on-demand laundry, matchmaking Surveillance E.g. Video surveillance softwares/platforms, Biometric systems, home
platforms etc. security products etc
Solutions for assisting Events industry

Includes solutions for sports industry
Events Tech
E.g. Event Discovery, Booking Platform, Event Management Solutions
Sports Tech E.g. Offline sports booking of the sports arena, sports content platforms,
player management, and performance analysis.
Tech-based solutions in life science
startups associated with physical and mental wellness Life Sciences

E.g. Genomics- DNA/Protein Sequencing, etc
Fitness and
E.g. Emotional, mental wellness solutions, apps for physical fitness
Wellness On premise or cloud-based products & solutions which detect,
(bookings, home fitness assistance), marketplaces for nutrition
prevent and respond to cyberthreat to organizations or
supplements, wellness products – women's hygiene etc
consumers.
Cybersecurity
Companies providing products/services to assist telecom sector
E.g. Network Incident Response/Intrusion Detection solutions, Identity
Access Management solutions, VPNs etc
Telecom
E.g. Infrastructure enabling the delivery and transmission of telecom
Online platforms that provide a medium for individuals or
services, Cloud Telephony, etc
businesses to connect, network, interact, share multimedia
Technology for environment preservation or green technology Social content, or seek collaboration opportunities with other individuals
Environment or businesses
Platforms
Tech E.g. Tech solutions for air pollution, solid/water waste management, E.g. Social networking sites, professional networking sites, online
recycling solutions, climate monitoring etc. communities, blogging platforms, etc.

Other key definitions
Institutional investors include Venture Capital firms, Private Equity A fixed term, 6-24 month long, cohort-based program for pre-seed startups
Institutional Firms and Corporate investors typically focused on Horizon 2 and Horizon 3 opportunities. Invariably,
Investors Corporate
these are equity-based programs for corporates to get early access to
Incubator
large pool of ideas/solutions.
Seed and Angel funding rounds raised by Indian tech company
Seed-Stage A fixed term, 3-6 month long, cohort-based program for pre-growth
and growth stage startups. During program, the emphasis is on building
Corporate
proof-of-concepts and/or on integrations to determine on long-term
Accelerator
Series A & B funding rounds raised by Indian tech company engagement.
Early-Stage
A requirement-based program, where corporate business units define
problem statements that they are looking to solve, and partner with
Series C and beyond funding rounds raised by Indian tech company Partner
growing, mid, or late-stage startups to build complimentary solutions in
Late-Stage Program
exchange for a financial commitment

Key Contributors to the Study
Aarca Research e-TRNL Energy Pvt Ltd Kiksar Technologies Pvt Ltd Prophaze Technologies Pvt Ltd
AirV labs Farmonaut Technologies Pvt Ltd Kneogin Igmisarch Pvt Ltd Qi Ventures
AlphaNimble Fidelity Investments KoiReader Technologies Quantumweave Intelligence Pvt Ltd
Ankur Capital Fixit Krita.AI Samasti Health Technologies Pvt Ltd
Applogix FORMCEPT Technologies and Solutions Lares.AI Sascan Meditech Pvt Ltd
Arficus Pvt Ltd Pvt Ltd Lithion Power Schneid Electric
ARTech Unlimited Foundation for Science Innovation and LivNSense GreenOps Pvt Ltd Scikiq Data Pvt Ltd
Artivatic.AI Development Machenn Innovations Pvt Ltd Seafund
Astrek Innovations FourCore Maruti Suzuki SenseAI Ventures
AUI Systems GalaxEye MedevPlus Siddhan Intelligence Pvt Ltd
Azooka Labs Generation360 Media Solutions Nayam Innovations Pvt Ltd SMART Home Healthcare Solutions
Balanetra Technologies GenZDealZ.ai Pvt Ltd Nayan India Science and Technologies Smartvizs Pvt Ltd
Benlycos Pvt Ltd GMAC Intelligence LLP Pvt Ltd Solus AI
Bharat Innovation Fund H2next Pvt Ltd NEMA AI Speciale Invest
Bharat Innovation Fund HanuAI Pvt Ltd NeuroPixel AI Tecnod8 Innovations Pvt Ltd
Blume Ventures Hirex.AI Pvt Ltd Nexstem Tranzmeo IT Solutions Pvt Ltd
BluSapphire Cyber Systems Ltd Ideaspring Capital Nuverse Health Solutions Unicorn India Ventures
BP Singapore iHub Anubhuti IIITD Foundation Nxtas Mobility Unilever Industries Pvt Ltd
Brainsight AI Independent Consultant OneArvo Ventures Pvt Ltd Upraised (Jobstop Solutions Pvt Ltd)
CNHI Indian Angel Network Oracle VIT, Chennai
Cogniquest Technologies Pvt Ltd Infosys Pace Robotics VuNet Systems
Constems AI Systems Inn-Force Technologies Pvt Ltd Panda Retail Yagen Robotics Pvt Ltd
Conviva Innovatica Pharynxai YourNest VC Fund
DappLogix Software Pvt Ltd Jio Platforms Ltd Pradjna Intellisys Pvt Ltd
DY Patil Institute of Technology Justbaat Mediatech Pvt Ltd Pradjna Intellisys Pvt Ltd
Endiya Partners JyoSH AI Solutions Pvt Ltd Privasapien

Methodology
This report has been co-developed by nasscom and zinnov through a comprehensive study to understand the DeepTech startup Landscape in India.
This report analyses the following –
Current scenario and emerging trends that define the Indian DeepTech startup ecosystem
India’s position as a global DeepTech hub that is becoming attractive for investors, startups & corporates
Role played by Ecosystem enablers like Incubators/Accelerators, Govt. Policies in nurturing the startup ecosystem
Data Aggregation Interviews / Discussions RESEARCH TEAM
Zinnov Data 100+ Surveys and Interviews with

industry participants (founders,
nasscom Data investors, enablers, policymakers)
Sangeeta Gupta Archita Sarmah
Secondary Research Achyuta Ghosh Pooja Jain
Namita Jain Gaurav S

Pitchbook CBInsights Times of India
Crunchbase startup Genome Report Economic Times Aditya Gopalakrishnan
Dhiraj Sharma
LinkedIn Financial Express Medium Ashish Mishra
Mayank Kumar
Techcrunch Forbes Dealroom
Anandhu Ajith Vyas
Inc42 Business Standard Yourstory
Vikalp Sharma
The Ken Livemint PIB Delhi

Disclaimer
The information contained herein has been obtained from sources believed to be reliable. nasscom and its advisors & service providers disclaim all warranties as to the accuracy, completeness
or adequacy of such information. nasscom and its advisors & service providers shall have no liability for errors, omissions or inadequacies in the information contained herein, or for
interpretations thereof. The material or information is not intended to be relied upon as the sole basis for any decision which may affect any business. Before making any decision or taking any
action that might affect anybody’s personal finances or business, they should consult a qualified professional adviser.
Use or reference of companies/third parties in the report is merely for the purpose of exemplifying the trends in the industry and that no bias is intended towards any company. This report does
not purport to represent the views of the companies mentioned in the report. Reference herein to any specific commercial product, process or service by trade name, trademark, manufacturer,
or otherwise, does not necessarily constitute or imply its endorsement, recommendation, or favouring by nasscom or any agency thereof or its contractors or subcontractors.
The material in this publication is copyrighted. No part of this report can be reproduced either on paper or electronic media without permission in writing from nasscom. Request for permission
to reproduce any part of the report may be sent to nasscom.
Usage of Information
Forwarding/copy/using in publications without approval from nasscom will be considered as infringement of intellectual property rights.
Copyright © 2024
nasscom
Plot No 7 to 10, Sector 126, Noida, Uttar Pradesh 201301, India | Phone: 91-120-4990111 | E-mail: research@nasscom.in

About the authors
nasscom represents the voice of the $250 billion+ technology industry in India with the vision to establish the nation as the world’s leading technology ecosystem. Boasting a diverse and
influential community of over 3000 member companies our network spans the entire spectrum of the industry from DeepTech and AI startups to multinationals and from products to services,
Global Capability Centres to Engineering firms. Guided by our vision, our strategic imperatives are to accelerate skilling at scale for future-ready talent, strengthen the innovation quotient
across industry verticals, create new market opportunities - both international and domestic, drive policy advocacy to advance innovation and ease of doing business, and build the industry
narrative with a focus on Trust, and Innovation. And, in everything we do, we will continue to champion the need for diversity and equal opportunity.
nasscom Insights is the in-house research and analytics arm of nasscom generating insights and driving thought leadership for today’s business leaders and entrepreneurs to strengthen
India’s position as a hub for digital technologies and innovation.
Founded in 2002, Zinnov is a global management and strategy consulting firm, with presence in New York, Santa Clara, Houston, Seattle, Bangalore, Gurgaon, Pune, Hyderabad, and Paris.
Over the past 21 years, Zinnov has successfully consulted with over 250+ Fortune 500 enterprises to develop actionable insights to help them accelerate their technology journeys to create
value – across dimensions of revenue, transformation, and optimization. With core expertise in Digital Engineering Talent, Digital Transformation, Innovation, and Outsourcing Advisory, Zinnov
assists clients by:
Enabling global companies to develop and optimize a global engineering talent footprint through center setups and accelerators - in an as-a-service model, as well as optimizing their
global portfolios, to achieve higher R&D efficiencies, innovation, and productivity;
Advising global PE firms in asset shortlisting and target evaluation, commercial due diligence, and value creation;
Growing revenue for companies’ products and services in newer markets through account intelligence, market entry, and market expansion advisory;
Helping global companies outline and drive their open innovation programs, design and operate accelerator programs, and enable collaboration with startups across specific use cases
and predefined outcomes;
Structuring and implementing Digital Transformation levers enabled by technologies like AI/ML, Intelligent Automation, Cloud, IOT, etc.
With their team of experienced consultants, subject matter experts, and research professionals, Zinnov serves clients from across multiple industry verticals including Enterprise Software, BFSI,
Healthcare, Automotive, Retail, and Telecom in the US, Europe, Japan, and India. For more information, visit http://www.zinnov.com.
Address : Plot no. 7 to 10, Sector 126, Noida- 201303, India
Phone : +91-120-4990111
Email : research@nasscom.in
Web : www.nasscom.in, community.nasscom.in

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India's

1 India’s DeepTech Dawn: Forging Ahead

2 India’s DeepTech Dawn: Forging Ahead

01 Global DeepTech Startup Landscape 10

02 Indian DeepTech Startup Landscape 19

03 Indian DeepTech Startup Ecosystem Challenges 41

04 Unlocking Future Growth: Recommendations 46

05 Indian DeepTech Spotlight: Case Studies 50

06 Voice of the Ecosystem 59

This report includes the following:

4 India’s DeepTech Dawn: Forging Ahead

startup according Age: 10 YEARS Origin: INDIA Differentiator:

to ecosystem What is defined as DeepTech?

Inventive DeepTech startups

5 India’s DeepTech Dawn: Forging Ahead

Source: nasscom-Zinnov DeepTech survey

6 India’s DeepTech Dawn: Forging Ahead

7 India’s DeepTech Dawn: Forging Ahead

8 India’s DeepTech Dawn: Forging Ahead

9 India’s DeepTech Dawn: Forging Ahead

10 India’s DeepTech Dawn: Forging Ahead

In 2021, pandemic led to a surge in digital transformation, with businesses

Blockchain investments skyrocketed by 534% in 2021, reaching $25.8

Total funding in DeepTech startups Total funding in

11 India’s DeepTech Dawn: Forging Ahead

Financial inclusion gaps AI-powered fraud detection, Quantum-resistant

Infrastructure Vulnerabilities (Cloud, IoT

Access & Affordability Telemedicine & Remote Patient Monitoring, AI-powered

Dependent on fossil fuels AI-powered Climate Modeling, Carbon Sequestration,

12 India’s DeepTech Dawn: Forging Ahead

Traffic congestion and emissions Advanced Battery Technology, Advanced Driver-

Electric and Hybrid Propulsion Systems, AI-powered

Climate Disruption – impacting yield and

13 India’s DeepTech Dawn: Forging Ahead

Illustrative List of DeepTech Startups which Raised Funding in

Mobility Tech BFSI 1 1 Enterprise video

Industr ial & Manu facturing Tech Cybersecurity

Environ me nt Tech A marked uptick in DeepTech

Total Funding space between 2021 to 2023 Environment Tech

14 India’s DeepTech Dawn: Forging Ahead

Maturity Map of Leading DeepTech Startup Ecosystems Globally1 Methodology

parameters (outlined below) to evaluate their tech maturity:

Performance of the DeepTech Startup Ecosystem # of startups, Total funding

USA UK India Canada Germany

15 India’s DeepTech Dawn: Forging Ahead

United States Investor Security Mechanisms: Address the challenge of

16 India’s DeepTech Dawn: Forging Ahead

USA UK CANADA FRANCE GERMANY INDIA ISRAEL SWITZERLAND

Highest among countries Lowest among countries

What is not working for India?

17 India’s DeepTech Dawn: Forging Ahead

United States Venture Capital firms believe owning IP

18 India’s DeepTech Dawn: Forging Ahead

19 India’s DeepTech Dawn: Forging Ahead

Snapshot of the Indian DeepTech startup Ecosystem 2023

31,000+ 950+ USD 6 Bn+

3600+ 450+ USD 850 Mn+

~500+ 100+ USD 40 Mn+

20 India’s DeepTech Dawn: Forging Ahead

Retail Tech Enterprise Tech

Industrial & Manufacturing Cybersecurity

Source : Zinnov Research & Analysis, nasscom

21 India’s DeepTech Dawn: Forging Ahead

2 Bridges the digital divide