India's startup landscape is undergoing a quiet revolution, and at the heart of this transformation is a shift in the founder archetype. The country is witnessing a new breed of entrepreneurs who are not just content with building consumer-internet businesses or relying on existing technologies. Instead, they are driven by a desire to develop core technologies in-house, a move that is reshaping the startup ecosystem and attracting significant investor interest.
This evolution is particularly evident in the rise of deeptech startups, which focus on developing advanced technologies in areas like artificial intelligence, semiconductors, and advanced manufacturing. The funding landscape is reflecting this shift, with deeptech startups attracting a substantial $1.47 billion in 2025, up from $484 million in 2020. This surge in investment is a testament to the growing interest in research-led ventures.
One of the key drivers behind this change is the recognition that India needs to be self-reliant in advanced technologies to overcome the restrictions imposed by geopolitical realities. This realization has prompted universities to redesign their PhD programs, encouraging researchers to commercialize their work through deeptech startups. For instance, the Birla Institute of Technology and Science, Pilani (BITS Pilani), launched its PhD-Drive program in 2023 to address the challenges faced by young researchers in taking entrepreneurial risks immediately after completing their doctoral programs.
The program trains students to identify intellectual property opportunities, develop business models, pitch to investors, and navigate certification requirements. This comprehensive approach is designed to bridge the gap between academia and entrepreneurship, enabling PhD students to transition smoothly into the startup world. BITS Pilani's initiative is not an isolated case; the Indian Institute of Technology in Hyderabad is also planning a similar program, highlighting the growing momentum in this direction.
The shift towards deeptech startups is not just about access to laboratories and government funding; it's also about the mindset shift among entrepreneurs. Traditionally, the archetypal Indian startup founder has been an IIT engineer or an IIM graduate running consumer-internet businesses. However, the new breed of entrepreneurs is more focused on developing core technologies, a move that is attracting significant investor interest.
This change is particularly evident in the funding landscape, where deeptech startups are securing substantial investments. For instance, Sthyr Energy, a deeptech startup founded by PhD students from IIT Madras, raised $1 million in seed funding. Their focus on developing mechanically rechargeable zinc-air battery systems for long-duration and seasonal energy storage is a prime example of the kind of innovative solutions that are attracting investor attention.
The rise of deeptech startups is also closely linked to the growing shortage of deeptech talent in India. In artificial intelligence, for instance, the country had about 420,000 professionals in 2024, against an estimated demand for 600,000 experts. This talent gap presents both a challenge and an opportunity for entrepreneurs and investors alike.
Entrepreneurs like Gunjan Kapadia, who decided to pursue a PhD in chemical engineering to build a company around a scientific problem, are leading the way. His decision to take a long detour from a stable career to pursue a PhD is a testament to the growing belief that deeptech can reward scientific depth over speed. This mindset shift is crucial for the development of a robust deeptech ecosystem in India.
However, the road to building a deeptech ecosystem is not without its challenges. The ecosystem needs to mature in terms of regulation and funding, and early-stage capital is still limited. Despite these challenges, the momentum is undeniable, and the future looks bright for deeptech startups in India. The country's focus on advanced technologies and the growing interest in research-led ventures are set to drive significant innovation and economic growth.
In conclusion, India's startup landscape is undergoing a profound transformation, with a new breed of entrepreneurs driven by a desire to develop core technologies. This shift is reshaping the ecosystem, attracting significant investor interest, and driving innovation. As the country continues to invest in advanced technologies and nurture a deeptech ecosystem, the future looks bright for startups that are pushing the boundaries of what's possible.
