India’s ₹1 Lakh Cr Research, Development and Innovation (RDI) Fund has approved its first cohort of 19 second-level fund managers with a total commitment of ₹7,131 Cr to support cutting-edge technology startups focused on innovation at advanced development stages.
- ₹7,131 Cr committed through 19 fund managers for high-tech startups
- Fund targets technology ventures at TRL 4 and above to address funding gaps
- Government continues onboarding more managers to expand innovation funding
What happened
The Indian government’s RDI Fund, designed to empower research-driven startups, has approved 19 second-level fund managers responsible for deploying ₹7,131 Cr. The selected groups include 14 alternative investment funds and 5 focused research organisations, all tasked with investing in technology enterprises that meet the criteria of Technology Readiness Level 4 or higher.
This announcement follows the establishment of the RDI Fund in November 2025, with an overall budget of ₹1 Lakh Cr. These fund managers are expected not only to allocate public capital but also to attract equivalent private investment, significantly expanding the financial resources available to innovative deeptech companies in India.
Why it matters
The RDI Fund addresses a critical funding gap for startups engaged in developing high-risk, high-impact technologies, an area historically underserved by conventional investment channels. By supporting ventures at more mature stages of technology development, the fund improves the viability and scalability of innovation efforts across the country.
This initiative also aims to foster a collaborative investment environment between government-backed capital and private investors. However, questions remain about governance and transparency following reports of potential conflicts of interest, underscoring the need for ongoing oversight to maintain investor confidence and integrity in the funding process.
What to watch next
The government plans to continue welcoming new applications and onboarding additional fund manager cohorts, thereby broadening the scheme’s reach and impact on India's innovation ecosystem. The expansion of funders could catalyze further private sector participation in backing deeptech startups.
Meanwhile, monitoring the RDI Fund’s effectiveness and governance will be crucial, especially given mixed investor sentiments revealed in recent surveys. Attention will also focus on the types of technologies prioritized and the fund’s role in sustaining India’s growing momentum in deeptech venture funding, which recently surged by 176% year-over-year.