The Deeptech Conflict, Rapido Bags License, and PM Bets On Tech

India’s ₹1 lakh crore RDI Fund exists because deeptech companies need something Indian finance rarely offers: patient capital for projects that may take years to commercialise. The first TDB window offered loans at roughly 2-4% interest for as long as 15 years, without conventional collateral. For startups working in space, semiconductors, robotics or medical technology, that is unusually attractive money.

That is why the first allocation deserves scrutiny.

TDB approved ₹2,192 crore for 22 companies. Fifteen had investment or professional links with members of the selection committee and received about ₹1,378 crore, or 63% of the sanctioned amount. Seven of the 11 voting experts had disclosed interests connected with companies that eventually received funding.

That sounds bad, but the evidence does not support calling it corruption. The government says members disclosed their interests and completely recused themselves whenever a connected company was discussed. There is no evidence so far that conflicted members voted, technical scores were manipulated or undeserving companies were selected. Many recipients, including Ather Energy, Agnikul, Dhruva Space and Tejas Networks, are established technology businesses.

The problem is elsewhere.

Recusal works when conflicts are occasional. When seven out of 11 voters have links with winners, the committee itself becomes heavily connected to the companies it is judging.

Chief Economic Adviser V. Anantha Nageswaran offered one explanation: applications were processed first-come, first-served, so companies already connected to India’s deeptech networks heard about the programme earlier.

That explanation is believable. It also points to a weakness.

When cheap public capital is scarce, knowing about the opportunity early matters. The requirement for matching private capital adds another advantage for companies already backed by recognised investors. A programme meant to fill gaps left by private capital can therefore end up following the same networks.

The second cohort is important here. Only one of the 13 companies reportedly has a committee connection. That supports the government’s argument that the first batch was unusually concentrated, but it also shows that such concentration was not unavoidable.

India should keep experienced investors involved. Removing them entirely would create a different problem. But application windows should be widely advertised, conflict registers and recusals should be public, and technical assessment should be separated from final capital approval.

The question is simple: would an equally strong deeptech founder outside India’s established investor networks have had the same chance?

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.

“Daal Hi Puri Kaali hai”: Deeptech Investors Seek More Transparency

India’s ₹1 Lakh Cr RDI Fund is facing questions after 15 of the 22 companies funded in its first ₹2,192 Cr round were found to have links with members of the selection committee.

Deeptech investors told the issue could weaken trust in government-backed capital unless allocation becomes more transparent and independently overseen.

Read more here

“Modi Hai Toh Mumkin Hai”: PM Modi Bets On Tech To Empower Youth

PM Modi is betting on tech to make education more accessible, announcing free online coaching for competitive exams and AI training for 1 Cr youth.

He said the push could ease the coaching burden on middle-class and poorer families, while India also expands its semiconductor ambitions.

Read more here

“Phaila Hua Dhandha Hai”: Ola Electric Unveils Three New Energy Storage Products

Ola Electric has launched three battery energy storage products: second-gen Ola Shakti, industrial BESS product Shakti Rack, and Mahashakti for utility-scale energy storage.

The products use Ola’s in-house 4680 Bharat lithium-ion cell.

Read more here

“Hum Saath Saath Hai”: Atomberg To Form JV With Voltas

Atomberg is teaming up with Voltas to manufacture AC compressors, with the JV also free to supply other customers.

The deal gives Atomberg a high-volume anchor client as it builds its compressor business ahead of a potential ₹1,500 Cr-₹2,000 Cr IPO.

Read more here

“Janmo Ke Saathi”: Redcliffe Labs, Skyroot Partner To Test Diagnostic Reagents

Redcliffe Labs and Skyroot are teaming up to test diagnostic reagents in space through their DRIFT-1 experiment.

The reagents will spend 90 days in Low Earth Orbit to see how microgravity and space exposure affect their stability and performance.

Read more here

“Waah Kya Scene Hai”: Rapido Bags Karnataka Cab Aggregator License

Rapido has secured a five-year cab aggregator license in Karnataka, valid till August 2031.

The approval strengthens its four-wheeler business as regulatory uncertainty continues around bike taxis in the state.

Read more here

“Santulan Zaroori Hai”: Delhivery Reshuffles Senior Leadership

Delhivery has reshuffled senior leadership, with COO Ajith Pai Mangalore set to exit the logistics firm.

Chief business officer Vani Venkatesh has been elevated to deputy CEO. The move comes as logistics platforms keep tightening operations and leadership benches for the next phase of public-market execution.

Read more here

“Apna Sapna Money Money”: WeWork Inc Sells 2.5% Stake In WeWork India

WeWork Inc has sold 35 Lakh shares, or about 2.5% stake, in WeWork India for ₹244.1 Cr through open-market transactions.

The shares were bought by Motilal Oswal entities, Citigroup, HDFC Standard Life Insurance Company and ICICI Prudential MF.

Read more here

“Cancel Cancel Cancel”: Maharashtra FDA Suspends 14 Quick Commerce Store Licences

Maharashtra FDA has suspended the licenses of 14 dark stores operated by Blinkit, Zepto and Instamart over food safety and hygiene violations.

Officials inspected 86 dark stores, issued 60 improvement notices, and ordered temporary stoppage at one facility.

Read more here

1. Peak XV has led a $45 Mn Series B in US-based AI code testing startup Blacksmith at a $550 Mn valuation. The round also saw participation from existing backers GV and Y Combinator, deepening Peak XV’s US AI bets.

   Read more here