The ₹1 Lakh Cr RDI Fund's first ₹2,192 Cr round saw 15 companies linked to its selection committee. These 15 firms secured 62% of the total allocation, sparking concerns about conflicts of interest in deeptech funding. Deeptech investors now demand greater transparency and independent oversight to build trust.
The ₹1 Lakh Cr RDI fund was established under the Anusandhan National Research Foundation (ANRF) to boost India's deeptech sector. This scrutiny follows an Indian Express report detailing the links between investment committee members and beneficiary companies in the initial disbursements.
The government will likely need to formalize new disclosure mandates or independent audit mechanisms for future RDI fund disbursements. Expect pressure from deeptech VCs and emerging fund managers to clarify application processes and eligibility for the remaining ₹98,000 crore corpus.
🇮🇳 Why This Matters for India
For deeptech founders in Bengaluru and Hyderabad, this opacity around government capital could stifle patient capital access for genuinely innovative, early-stage ventures.
The Take
The immediate losers are genuinely new deeptech teams without established VC connections, missing out on crucial seed capital. This further centralizes power among a few well-connected funds, stifling true grassroots innovation in sectors like space tech or semiconductors.
Source:  Inc42 ↗