8 months ago
India's Deep-Tech Shift: Focus on Manufacturing
India's deep-tech investment scene is changing.
Before, investors put money into many different types of startups, even if they weren't making money yet.
Now, they are focusing more on companies that make real products and can sell them.
This means startups need to show they have customers who are willing to pay for their products, not just ideas that look good on paper.
One example is a company called Quintrans, which is making special parts for machines.
Investors are also looking at areas like healthcare and advanced manufacturing.
This change shows that the investment world is becoming more serious about making sure their money is used wisely.
India's deep-tech investment ecosystem is shifting from broad bets to manufacturing-first startups.
Capital A's second fund focuses on technology-led manufacturing with clear commercial outcomes.
The first fund was diversified across sectors, while the second fund is more selective.
Investors now require clear visibility on returns and paying customers for deep-tech startups.
The definition of deep tech is expanding to include advanced manufacturing and healthcare technologies.
- Who
- Capital A, a venture capital firm led by Ankit Kedia
- What
- Shift in deep-tech investment focus towards manufacturing-first startups
- Where
- India
- When
- 2025 marked the shift in investment strategy
- Why
- To move beyond research-heavy experimentation towards execution and monetisation
Key facts
- Investment Shift
- From broad bets to manufacturing-first startups
- Funding Cycle
- 2025 marked a shift to discipline and selectivity
- Capital A's Focus
- Technology-led manufacturing with clear commercial outcomes
- First Fund
- Diversified across sectors like climate tech, EVs, fintech
- Second Fund
- Sharper focus on manufacturing and execution
- Example Investment
- Quintrans developing electromagnetic actuators
- Investor Expectations
- Clear visibility on returns and paying customers
- Deep Tech Expansion
- Includes advanced manufacturing, medical devices, preventive health
Quotes
Ankit Kedia
Founder and Lead Investor at Capital-A
“"Fund I was launched at the peak of euphoria and was deliberately diversified across sectors. Fund II is very different. The thesis is far sharper, filters are tighter, and we are backing companies that can build technology into manufacturing businesses with clear commercial outcomes."”
thehindubusinessline.com
“"Manufacturing is a hard problem to crack in India because it is capital-intensive and R&D-led. Legacy players have strong distribution and plants in place, which often pushes innovation to the back seat. That’s where new-age start-ups can actually create disruption."”
thehindubusinessline.com
