Nasscom Report: India Is Witnessing a Boom in Deep-Tech Startups

According to a new Nasscom report released on Monday, deep-tech startups in specialized fields like semiconductors, quantum computing, AI, and cyber security are booming in India. The nation is now home to more than 3,000 such startups, which raised $2.7 billion in 2021, a 1.6-fold increase over the previous year.

According to Debjani Ghosh, President of Nasscom, “the Indian deep-tech ecosystem has also reinforced job creation with over 4,000 people employed across 14 potential deep-tech unicorns and is anticipated to rise by 2X in headcount by 2026.”

500 creative deep-tech startups are currently based in the country, employing people in fields like AI, robots, 3D printing, and drones. These startups have the ability to create new intellectual rights that are supported by scientific discoveries and fundamental research.

The deep-tech ecosystem grew at a startling rate of 53 percent CAGR over the course of the last ten years, keeping pace with Indian tech companies.

“Strategic engagement with the government, international investors, academia, streamlined corporate collaboration, and specialized test-bed initiatives may generate a significant influence on India’s deep-tech story,” added Ghosh.

The Indian deep-tech ecosystem is rapidly growing, despite being in its infancy as compared to the US, Europe, Israel, and China.

According to the survey, more start-ups are entering the market to address the global mega-challenges of clean technology, ending hunger, building smart cities, and taking climate action.

In 2021, over 270 distinct startups raised $2.7 billion over 319 deals, with AI, big data, and analytics being the leading technologies raising equity investments.

The survey noted that supply chain management (SCM) and logistics were the most financially supported verticals in 2021, with deep tech firms raising money for use cases like drone delivery, cold chain monitoring, autonomous delivery bots, and fleet management.