Deep Tech’s Struggle, CoRover Unveils BharatGPT Mini, and Ola Electric’s Sorrows

When you scroll through India’s startup news, it’s always the same names. A new quick-commerce app delivering groceries in 10 minutes, a celebrity-backed D2C brand for skincare, or another round of funding for food, fintech, and quick delivery. All these startups are fast, familiar, and fundable.

But here’s the problem: India is not building enough real tech.

While countries like China are pouring billions into semiconductors, AI, space tech, and robotics, India’s startup scene still leans heavily toward consumer services. In 2024, deep tech startups in India got around $1.6 billion in funding, barely 5% of the total pie. In comparison, China invested over $12 billion in AI and semiconductors alone. That’s a big gap.

And it’s not that India lacks talent. Startups like Agnikul Cosmos, ideaForge, CynLr, and Newtrace have built amazing products — from 3D-printed rocket engines to robotic arms. But they are the exceptions, not the norm. Most Indian founders are still building for the consumer internet - delivery, commerce, payments, and content. While it’s not wrong, but it’s also not enough.

Building deep tech in India is hard, and raising money is even harder. Most VCs are not trained to evaluate complex scientific or engineering ideas. A delivery app or a D2C brand has clear numbers - users, revenue, repeat rate. A startup working on hydrogen storage or quantum computing has none of that in the early stages. Deep tech needs patient capital and long-term thinking. Most Indian funds are not set up for that.

Early-stage deep tech founders often struggle to raise even $1 million in pre-seed or seed rounds. Many of them pitch 50 to 100 investors before getting a yes. Unlike SaaS or fintech, there are fewer investors who “get it” and are willing to take the first bet.

The time to product-market fit is longer. You may need 2–3 years just for prototyping and testing. That’s too long for most investors, who are used to fast growth within 12–18 months.

Another big issue is access to labs, testing facilities, and pilot customers. Consumer startups can run an ad campaign to get users. Deep tech startups need partnerships with hospitals, farms, factories, or research institutions. These are hard to get and are often mired in bureaucracy .

On top of that, regulatory uncertainty is high. If you’re working in drones, climate tech, or AI-based medical devices, you’re walking into grey zones. That scares off investors and slows down commercial pilots.

Even after building a solid product, deep tech founders struggle to raise follow-on rounds. Many of them try to raise from global funds in the US, Europe, or Japan. But that creates more friction - time zone issues, long due diligence cycles, and the need to relocate IP or operations. Many promising founders eventually give up or move abroad.

Until recently, the government also favored consumer startups. Commerce Minister Piyush Goyal called this out earlier this year, saying India needs to stop celebrating startups that “clone features” and start supporting original technology.

The government is now making efforts such as creating the National Deep Tech Startup Policy, and initiatives like the IndiaAI Mission, as well as the ₹10,000 crore Fund of Funds for deep tech. This shows intent but it doesn’t change things overnight and considering how far ahead China is, they should put in 10x the money.

We also need to fix the pipeline. India loses many of its top AI and engineering talent to the US and Europe. A recent trend has been UAE recruiting these people as well for their efforts in deep tech. Our institutions still don’t produce enough deep tech founders despite graduating the highest number of engineers and STEM graduates every year and a lot of that is cultural. India needs a few big wins in deep tech for that culture to start shifting.

Therefore, here’s what we suggest. First, we need specialized funds that understand deep tech and are willing to invest in early stages. Second, corporates and universities need to play a bigger role as R&D backers and buyers. Third, we need to stop measuring success only in valuation and GMV. Building a hydrogen electrolyzer or a satellite modem might not go viral - but they can make a difference globally.

Fourth, we need a mindset shift. Founders should be encouraged to solve hard problems, rather than creating another app. Easy money has made us lazy. We need to bring back hard innovation.

We are at a point where India can choose what kind of startup ecosystem it wants to build. Consumer apps will always have their place. But if we want to become a true tech leader, we need to bet big on deep tech, and back our sharpest minds to solve the hardest problems.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

”Buland Bharat Ki Buland Tasveer”: CoRover Unveils BharatGPT Mini, India’s First Offline Multilingual AI Model

CoRover has introduced BharatGPT Mini, India’s first offline, multilingual AI model designed to run entirely on-device, no internet required.

Launched at VivaTech 2025 in Paris by Union Minister Jitin Prasada, the model supports 14 Indic languages and draws on CoRover’s proprietary conversational data.

Read more here

“Pray and pray for my downfall”: Ola Electric Hits Fresh All-Time Low Amid Broader Market Slump

Ola Electric’s stock continues its downward slide, hitting a fresh all-time low of ₹43.20 with a 6% dip on the BSE today.

This comes after a quieter fall last week, hinting at a pattern investors aren't thrilled about. Broader market jitters, fueled by rising tensions between Iran and the US, aren’t helping the mood either.

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“Janmo Ke Saathi”: Kamath Brothers Pick Up INR 250 Cr Minority Stake In IPO-Bound InCred

Zerodha’s Kamath brothers just picked up a ₹250 Cr minority stake in InCred, the IPO-bound fintech player making waves in the BFSI space.

Founded by Bhupinder Singh in 2016, InCred now runs three distinct verticals and its lending arm hit unicorn status just last December. With the Kamaths on board, InCred’s market debut just got a lot more interesting.

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“Ash Toh Kar Yaar Ash Toh Kar”: 3one4 Capital Scores 5-7X Returns From ToneTag Exit

3one4 Capital just walked away with a tidy 5–7X return from its exit in ToneTag - proof that small bets can pay off big.

The VC had invested under $1 Mn via its Fund II, and the exit came at the same valuation as the startup’s recent Series B2 round. With ToneTag turning profitable in FY24, posting ₹21 Cr in PAT, this one’s a win that speaks quietly but loudly.

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“Subsidy Ka Mazedaar Khel”: Govt To Offer 100% Compute Subsidy To Sarvam, Others For Foundational Models

In a big push for AI sovereignty, the government is set to offer a 100% compute subsidy to players like Sarvam AI developing foundational models.

This means the heaviest, most resource-hungry part of AI training will now be fully funded, if you’re building from the ground up. Meanwhile, lighter AI tasks like inference and applications will still get a decent 40% cushion.

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1. EV charging startup Kazam has secured $6 Mn in fresh funding led by Vertex Ventures, with participation from IFC, Avaana, and Chakra Growth Capital. The 2020-founded company plans to use the capital to scale its smart, affordable charging network across India.
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2. D2C kids brand Rabitat has raised ₹40 Cr in a Series A round co-led by RPSG Capital and DSG Consumer Partners. The funds will support new design launches and deepen ties with Indian manufacturers.
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3. PharmEasy’s founders are branching out with All Home, a new home improvement venture now valued at over $120 Mn after fresh funding led by Bessemer. The startup has also roped in heavyweight investors from Motilal Oswal, B Capital, and Warburg Pincus.
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4. ideaForge has bagged a ₹137 Cr order from the Indian Army for hybrid mini drones under the emergency procurement route. The deal emphasizes indigenous design and sourcing from non-border-sharing nations, marking a major defence-tech milestone.
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