India’s Tech Bet, Nishant Pitti Pledges, and Paytm’s Desi Twist

For most of the last decade, India’s startup ecosystem ran on a simple formula. Take a proven model from the US or China, localise it, raise capital, and scale fast.

That playbook worked. Until it didn’t.

FoF 2.0 is the government’s way of saying that phase is over.

The ₹10,000 crore Fund of Funds 2.0 is not another stimulus. It is a directional shift. India no longer wants to fund only wrappers and marketplaces. It wants to back research-heavy, IP-led companies in deep tech, semiconductors, biotech, and advanced manufacturing.

This shift is not unique.

Globally, the model is already proven. In the US, DARPA and the CHIPS Act have backed frontier technologies long before they became businesses. China has used state capital to build global leaders in EVs, batteries, and chips. Israel’s Yozma program de-risked early VC capital and built one of the strongest deep-tech ecosystems in the world.

India is late. But it is finally following the same path.

Because the old model had limits. The arbitrage era built India’s digital economy, but it also created businesses where the moat was capital, not technology. When funding slowed, those advantages disappeared. Delivery networks can be copied. Discounts can be matched. Thin software layers rarely survive.

FoF 2.0 is trying to fix that.

Unlike the 2016 fund, which was broad, this one is segmented and opinionated. It prioritises deep-tech funds, micro VCs, and tech-driven manufacturing. The question is no longer whether startups can grow, but whether they are building something India can own.

The policy details reinforce this. Deep-tech startups now get a 20-year recognition window and higher turnover limits. That reflects reality. Real innovation takes time. A semiconductor or biotech company cannot be judged like a consumer app.

There is also a shift in how capital gets allocated.

With Technology Readiness Levels, funding will depend more on how mature a technology is, not how strong the pitch sounds. This directly targets India’s biggest gap, the stage between lab research and commercial scale, where many deep-tech startups have failed.

Of course, this model is not risk-free.

Globally, sovereign capital works only when it pulls in private money. Israel succeeded because VCs followed. China succeeded because execution matched intent. Many countries failed when capital moved slowly or backed the wrong sectors.

India has early warning signs too. The first FoF saw disbursement delays, and exits remain uneven. Deep-tech will need more patience and stronger private participation.

Still, the direction is clear. India is moving from copying products to building technology. From scaling models to owning IP. From chasing unicorns to building companies with real moats.

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.

“Jahan Teri Ye Nazar Hai”: EaseMyTrip Cofounder Nishant Pitti Pledges Another 6.86 Cr Shares

EaseMyTrip cofounder Nishant Pitti has pledged another 6.86 Cr shares worth around ₹55 Cr to Motilal Oswal Financial Services for personal use.

This pledge covers about 15% of his 45.4 Cr shareholding in the company. What stands out is the bigger picture, with nearly 98.89% of his total stake or 44.87 Cr shares now pledged, reflecting a near-complete leverage of his ownership.

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“Ye Naya Bharat Hai”: Paytm becomes majority Indian-owned as domestic investors raise stake

One97 Communications, which operates Paytm, has now become majority Indian-owned as domestic investors steadily raise their stake.

This shift comes as foreign institutional investors cut their holding from 72.11% in June 2023 to 49.4% by March 2026. The change reflects both regulatory nudges and a broader rebalancing of ownership in India’s fintech space.

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“Rahat Ki Saans”: IT Dept cuts PhysicsWallah tax demand to Rs 193 Cr after rectification

PhysicsWallah has secured partial relief as the Income Tax Department reduced its tax demand to ₹193 Cr after a rectification plea.

The original demand of ₹263.34 Cr, issued under Section 143(3) for FY24, was revised following the company’s application under Section 154. While the cut offers some breathing room, a sizable tax burden still remains on the books.

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“Kuch Naya Karne Ka Jazba”: Centre Mulls Mandating Separate Warehouses For Ecommerce Exports FDI

The Centre is considering mandating separate warehouses for export and domestic inventory in ecommerce FDI setups.

The idea is to ensure goods meant for international markets don’t spill into domestic sales channels. This comes as India continues to restrict FDI in inventory-led ecommerce while allowing only marketplace models.

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“Hum Saath Saath Hai”: PhysicsWallah set to acquire stake in Rojgar With Ankit

PhysicsWallah is in talks to acquire a partial stake in Rojgar With Ankit, marking a potential strategic expansion move. The deal is likely to value Rojgar With Ankit at approximately ₹400–500 crore.

If it goes through, this would be its first acquisition since its November 2025 listing, even as it recently raised stakes in Xylem Learning and Utkarsh Classes.

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“Ek Se Bhale Do”: IITM Pravartak, Sarvam AI partner for sovereign AI deployment

IITM Pravartak Technologies Foundation and Sarvam AI have partnered to push sovereign AI deployment in India.

The collaboration will focus on building AI systems for government and industry using Indian data, languages, and infrastructure. It signals a broader shift toward reducing dependence on global tech ecosystems while strengthening domestic AI capabilities.

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1. GobbleCube has raised $15 Mn in a round led by Susquehanna Venture Capital with participation from InfoEdge Ventures and Kae Capital. The startup plans to use the funds to sharpen its AI capabilities and expand globally as it helps brands scale across digital marketplaces.

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2. Ivory has raised $1 Mn in fresh funding to strengthen its cognitive screening platform and build out clinical and IP capabilities. The round saw participation from Draper Associates and SAGE Venture Fund, signaling rising investor interest in preventive health at scale.

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3. NSRCEL and Pernod Ricard India Foundation have disbursed ₹95 lakh in grants to 10 startups under their circular economy incubation programme. Beyond funding, the cohort also received mentorship, industry access, and strategic support to scale sustainably.

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