India’s RDI fund commits ₹7,131 crore to 19 VC funds, research orgs

India’s ₹1 lakh crore Research, Development and Innovation (RDI) Fund has approved its first cohort of 19 fund managers, committing ₹7,131 crore to accelerate private investment in deeptech and research. The group includes 14 alternative investment funds (AIFs) and five focused research organisations (FROs), as reported by a leading financial publication.

Blume Ventures, Kalaari Capital, and Chiratae Ventures are among the selected AIFs. The funds will channel capital into early-stage deeptech startups, while the FROs will support private-sector research and development. This marks the first deployment from the RDI Fund, which was established to address gaps in India’s R&D financing.

The move aligns with a broader trend of government-backed initiatives aimed at de-risking deeptech investing. Recent months have seen other funds close tranches for sector-specific investments, including agritech and early-stage startups. Unlike those efforts, the RDI cohort is tied to a larger push to institutionalize patient capital for high-risk, long-term innovation.

A key question is how efficiently the capital will flow to startups. The RDI Fund’s structure involves second-level fund managers, which could either streamline deal-making or introduce additional layers of decision-making. Investors will be watching for signs of momentum—particularly when the first cheques from these AIFs begin reaching portfolio companies. The next phase will reveal whether the model delivers speed or friction.

Sources: economictimes.indiatimes.com