India’s Deep-Tech Wave, Gig Workers’ Welfare Bill, and IIT Roorkee x Futurense

India’s startup story has long been painted in the colors of consumer apps, e-commerce deals, and fintech fireworks. But beneath that noise, a quieter and heavier shift is taking shape: the rise of deep-tech. Unlike the quick-burn, scale-fast playbooks of food delivery or lending apps, these startups thrive on intellectual property, patents, and years of lab-to-market struggle. It’s a difficult road, but one that signals a maturing ecosystem, where the focus is shifting from convenience-driven consumer plays to core technologies that can reshape industries.

Recent months have seen deep-tech startups headline funding announcements across areas like AI hardware, space tech, biotech, semiconductors, and climate tech. Bengaluru-based Agnikul and Skyroot are putting India’s space ambitions on the global map. Companies like Niramai (health diagnostics) and QNu Labs (quantum cryptography) are demonstrating that India’s scientific bench strength can translate into globally relevant products. The numbers back this up: deep-tech startups in India crossed more than 3,000 in count, with funding in the sector growing steadily despite an overall funding slowdown. Importantly, a crop of new deep-tech–focused funds - like Pi Ventures, Speciale Invest, and Bharat Innovation Fund - has emerged to back this movement, complemented by government-backed initiatives such as the National Deep Tech Startup Policy draft.

But enthusiasm masks structural hurdles. Unlike a quick-commerce app that can show traction in six months, deep-tech ventures face a “valley of death” - a funding chasm between early-stage grants and later-stage capital. VCs in India, conditioned to chase 10x returns in 3-5 years, often struggle to understand businesses that might take 7-10 years just to reach commercial scale. That mismatch in expectations is the single biggest drag on this sector. Many promising ventures stall not because the science fails, but because the funding runway collapses midway.

Global comparisons make this clearer. In the US, DARPA and SBIR programs bridge early risk; in Europe, Horizon funding creates scaffolding for commercial pathways. Israel’s Yozma model proved how state-backed capital can nurture frontier tech until it becomes VC-ready. India has attempted to replicate some of this with BIRAC in biotech and iDEX in defense, but these are piecemeal efforts. What’s missing is a cohesive, scaled national framework that addresses the commercial gap and accelerates adoption through government procurement - a critical first buyer role.

The upside, however, is immense. If nurtured, deep-tech startups could make India a global supplier of IP-driven innovation, reduce dependence on imported technologies, and build industries that outlast consumer fads. But if left unsupported, the sector risks becoming a graveyard of stalled prototypes and wasted intellectual capital. For founders, the struggle isn’t just product development - it’s convincing both investors and policymakers to bet on long timelines. For investors, the opportunity lies not in chasing quick exits, but in seeding the foundational layers of industries that can generate disproportionate long-term returns.

We think the way forward requires intentional interventions. A “Deep-Tech Fund of Funds” could channel institutional and sovereign wealth into patient capital pools. Productization hubs, especially tied to universities and research institutions, can bridge the lab-to-market chasm. Simplifying government procurement rules would let startups find their first customers without being buried under bureaucracy. And global partnerships - with the likes of US defense primes, EU biotech consortiums, or Japanese semiconductor giants - could fast-track both credibility and market access.

India is at a turning point. Consumer startups gave us unicorn headlines; deep-tech may give us industrial resilience. But only if we choose to play the long game.

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.

“Workers of the World Unite”: Karnataka Assembly Passes Gig Workers’ Welfare Bill

Karnataka has just made a big move for gig workers by passing the Gig Workers’ Welfare Bill. The law sets up a welfare board, makes registration mandatory, and even brings in a transparent system for dispute resolution.

Aggregators will now have to cough up a 1-5% welfare fee on each transaction, ensuring delivery partners and drivers finally get some safety net on the job.

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“AI Se Suraksha AI Hi Karega”: IIT Roorkee, Futurense launch GenAI-based cybersecurity program

IIT Roorkee has teamed up with Futurense to roll out India’s first GenAI-powered cybersecurity programe.

The nine-month hybrid course, starting October 18, 2025, is designed to tackle cyber threats born out of generative AI itself. Think less about firewalls and more about protecting algorithms, models, and cloud setups from the next wave of AI-driven attacks.

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“Chintan Ki Chinta Ka Khatma”: Info Edge CFO Chintan Thakkar Quits, To Helm IAN Group As CEO

Info Edge’s long-time CFO Chintan Thakkar is moving on to take the reins as CEO of IAN Group. After wrapping up his notice period, he’ll lead seed and early-stage bets while shaping the newly launched IAN Alpha Fund.

With IAN already backing 225+ startups like Propelld and Zypp, Thakkar’s shift signals a big push in India’s early-stage investing game.

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“Mera Desh Badal Raha Hai”: Gaming Apps Used In Money Laundering, Terror Funding

Union IT minister Ashwini Vaishnaw has raised alarm bells, saying online gaming apps are being misused for money laundering and even terror funding.

Many operators, often based offshore, dodge state rules and taxes while raking in profits. To clamp down, the Cabinet has cleared a bill banning all online games with a monetary component.

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1. Kiwi has raised INR 209 Cr ($24 Mn) in a Series B round led by Vertex Ventures, with support from Nexus, Stellaris, and Omidyar Network. The fintech plans to use the funds to push UPI-linked credit cards into the mainstream, two years after its $13 Mn Series A.
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2. Biotech startup PeelON has raised $1 Mn in seed funding led by growX Ventures, with participation from Boston Venture Group and Clean Energy Venture Group. The funds will fuel R&D, expand production in Vizag, and strengthen sales teams in India and the US.
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3. HDFC Bank has invested undisclosed amount in CoRover, the Bengaluru-based firm behind BharatGPT, India’s sovereign large language model. CoRover powers AI assistants across chat, voice, video, and telephony, already serving over 25,000 enterprises with a claimed reach of 1 billion users.
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