● Most deeptech founders express confidence in raising their next round of funding, though they remain divided on current access to capital.
● Founders cite skill shortages, high salary expectations, and limited domestic market readiness as key barriers to growth, alongside challenges in expanding to overseas markets.
● Access to specialized labs and facilities remains uneven; however, supportive government policies such as tax incentives and R&D policies are beginning to have a positive impact.
TDK Corporation (TSE: 6762) today announced that its subsidiary,TDK Ventures, Inc., together with India-based early-stage investorKae Capital, has released Deeptech India 2025: Mapping the Next Frontier. The new study captures insights from nearly 100 deeptech founders across India, offering a rare view into both the opportunities and challenges shaping the country’s innovation landscape.
This collaboration combines Kae’s deep, on-the-ground understanding of India’s startup landscape with TDK’s global perspective, creating a powerful platform to highlight both the progress made and the road ahead for India’s deeptech ecosystem.
The survey finds that while Indian deeptech startups continue to face fundraising challenges, founders remain largely confident in their ability to secure the next rounds. Over half (53%) of respondents said capital remains difficult to access, 44% found it reasonably available, and just 3% considered funding abundant. Despite this, more than 58% expressed confidence in raising their next round. When asked about barriers to fundraising, a lack of investor understanding (45%) emerged as the leading challenge, followed by long gestation period (19%), valuation mismatches (13%), and limited depth of local venture capital (9%).
The report highlighted several high-growth sectors—Energy Tech & Transition, Robotics & Automation, B2C Deeptech, AgriTech, Advanced Material, Semiconductor, Space Tech and Quantum Technology—that are expected to witness accelerated innovation and funding activity in the coming years.
“Deeptech demands a fundamentally different and nuanced approach. India is at the cusp of transformative growth in this space, and this survey not only strengthens our understanding of founders’ challenges but also highlights India’s potential to build global deeptech leaders. At TDK Ventures, we see our role as helping the broader ecosystem—including international corporate venture capitalists—better understand India’s entrepreneurial energy and join in supporting these founders. By validating technologies, enabling pilots, and bringing global perspectives, we hope to help India’s innovators scale into world-class companies,” said Nicolas Sauvage, President, TDK Ventures.
The report features insights from founders across key sectors, including Energy Tech, Robotics, B2C Deeptech, Cybersecurity, AgriTech, Advanced Materials, Semiconductors, Space Tech, and Quantum Computing.
Market and Talent Challenges
The survey also reveals market adoption and talent as persistent concerns. While 44.3% of founders believe domestic markets are becoming ready for deeptech solutions, 30.9% cited pricing mismatches and another 30.9% highlighted challenges with overseas go-to-market strategies. Limited technology maturity and low engagement from Indian Original Equipment Manufacturers (OEMs) were also noted as barriers.
On the talent side, over half (45%) of founders identified skill shortages as their top concern, followed by high salary expectations (22%) and competition with multinational companies on compensation (20%).
“Deeptech founders in India are tackling problems that demand long-term commitment, significant technical depth, and a strong ecosystem to lean on. At Kae Capital, we believe deeptech will be central to India’s resilience and global competitiveness over the coming decade. This report with TDK Ventures shines a light on the opportunities as well as the gaps that remain. By enabling stronger capital participation and creating pathways to global markets, we want to help Indian founders build companies that don’t just succeed here, but lead on the world stage,” said Abhishek Srivastava, General Partner, Kae Capital.
Infrastructure and Policy Support
Access to critical infrastructure remains uneven. Just 23% of respondents reported full access to specialized labs, fabs, and test facilities, while 57% had only partial access and 20% had none. Government initiatives, however, are beginning to make an impact. Nearly 27% of founders pointed to tax incentives as the most helpful, followed by R&D policies (23%) and public procurement opportunities (12%).
“Despite challenges across funding, talent, infrastructure and policy, founders remain optimistic about India’s deeptech trajectory. The country’s deeptech ecosystem is entering a decisive growth phase, and at TDK Ventures we are committed to bridging gaps and enabling the next wave of innovation,” added Ravi Jain, Investment Director, TDK Ventures India.
