SUMMARY
- The RDI Fund approved 19 second-level fund managers, 14 AIFs and 5 research organisations, with ₹7,131 crore committed.
- Managers are expected to match the government’s money with private capital, so founders should prepare for venture-style diligence rather than grant-style paperwork.
- Projects must sit at Technology Readiness Level 4 or above. Get your IP position, production cost and customer case ready first.
India’s ₹1 lakh crore deeptech fund has finally named the people who’ll decide where the money goes.
On October 12, the Ministry of Science and Technology announced that the Research, Development and Innovation Fund has approved its first cohort of 19 second-level fund managers, with a combined commitment of ₹7,131 crore. The Empowered Group of Secretaries (EGoS) cleared the list on October 8, according to Business Standard and WebIndia.
The fund doesn’t write cheques to startups itself. These managers do. And 14 of the 19 are alternative investment funds, the structure most Indian VC firms use. As of August, only two government bodies, the Technology Development Board (TDB) and BIRAC, were managers, per a Drishti IAS explainer.
Who made the cut
The cohort splits into 14 alternative investment funds and 5 Focused Research Organisations, Inc42 reported. Sources told ET that more than 160 venture capital firms applied. Going by that figure, fewer than 9 in 100 of those applicants got through. That’s our arithmetic, not an official number.
The first call for applications went out in January 2026, and the fund says it will keep onboarding managers in the coming months, so this isn’t the final list, ANI reported.
The matching rule is the real story
Every RDIF second-level fund manager is expected to raise private money equal to what the fund puts in. On paper, that could push the pool past ₹14,000 crore. Treat that as a ceiling. Matching is an expectation until the cheques actually clear.
A manager risking outside investors’ money behaves differently from an agency spending an allocation.
India has run this play before. The Fund of Funds for Startups, set up in 2016 with a ₹10,000 crore corpus at SIDBI, pushed government money into private funds rather than backing startups directly. The ANRF RDI Fund follows the same two-tier logic.
Why two government bodies weren’t enough
The Cabinet cleared the scheme on July 1, 2025, according to Policy Circle, and it was operationalised on November 3, 2025 over six years.
Early money moved through TDB. On May 13, it signed the first agreements and released the first tranche to five startups: Dhruva Space, Endure Air Systems, ETRNL Energy, Noccarc Robotics and IISTEM Research, Entrepreneur India reported.
Then the pipe clogged. A recent Outlook Business report said TDB had stopped inviting fresh applications, citing administrative reasons. It also said 35 companies had been selected across two rounds, with no letters of intent yet issued to the second batch.
Separately, a written Rajya Sabha reply on July 30 showed seven of the 12 members of TDB’s investment committee had invested in 16 entities selected for funding, The Wire reported. That put conflict-of-interest safeguards under a spotlight.
Read More:
If you build hardware, this was written for you
Deeptech funding in India hit about $2.3 billion in 2025, up 37%, according to a Nasscom-Zinnov study. But AI took roughly 91% of it. If you make batteries, satellites or lab instruments instead of models, you’re fighting over the other 9%.
India’s gross R&D spending was just 0.64% of GDP in 2021, and private companies contributed only 36.4% of it, Policy Circle noted. A government fund for deeptech startups only works if private money shows up too.
What qualifies, and what doesn’t
TRL 4 funding is the entry ticket. Projects must be at Technology Readiness Level 4 or above, meaning the concept has already been validated in a lab. DST’s Jyoti Sharma told Outlook Business that “routine R&D will not be funded,” and that the government can back up to 50% of project cost.
This isn’t a grant, either. The scheme offers low-interest loans, equity or a mix, per Entrepreneur India.
Fund managers also have to judge whether your IP is defensible, whether you can produce at an acceptable cost, and whether a market exists, Policy Circle notes. It also flags a risk: if every failed project triggers an inquiry, managers may drift toward companies that are easier to defend before auditors.
Read More: How to Raise Pre-Seed Funding in India: What Investors Ask in the First 10 Minutes
What we’re watching
This is a developing story. The ₹7,131 crore is an approved commitment, not deployed capital, and nobody has shown that the matching private money has closed.
Three things will tell us whether the model works. How fast the first cheques reach startups. Whether the TDB application pause lifts. And whether later cohorts bring managers with real technical depth, not just fundraising muscle. If they do, India gets a real patient-capital pipeline for science and hardware startups.
Before you pitch any of the 19 RDI Fund fund managers
- Check your technology readiness level honestly. Below TRL 4, this money isn’t for you yet.
- Build your IP, production-cost and customer case before any meeting. Managers are expected to test exactly those three.
- Map other routes now with our Government Scheme Finder and Indian VC & Investor Database at the Founder Toolkit while the new managers ramp up.
Still earlier than TRL 4? Start with our guide to raising startup funding in India.
Building in deeptech and eyeing this route? Tell us in the comments which TRL you’re at, and share this with a founder who needs it.
FAQs
What is the RDI Fund?
The RDI Fund is a ₹1 lakh crore government corpus, approved by the Cabinet in July 2025 and launched in November 2025, meant to give long-term financing to private companies doing research, development and innovation in strategic sectors.
Who are the RDI Fund fund managers?
The first cohort has 19 second-level fund managers approved on October 8: 14 alternative investment funds and 5 focused research organisations. As of August, only the Technology Development Board and BIRAC were acting as fund managers.
How much has the RDI Fund committed to these managers?
The commitment to the first cohort is ₹7,131 crore. Managers are expected to raise matching private capital, so the pool could be larger. Commitments are approvals, though, not money already invested in startups.
Which startups are eligible for RDI Fund money?
Companies working on research-led technology at Technology Readiness Level 4 or above, in areas such as AI, quantum, robotics, space and semiconductors. Officials have said routine R&D won’t be funded; the work has to be innovative.
Is the RDI Fund a grant?
No. Entrepreneur India reports the scheme offers low-interest loans, equity participation or a mix of both, not traditional grants. DST officials say it can cover up to 50 per cent of a project’s cost.
How can a startup apply for RDI Fund money?
The fund doesn’t invest directly; the second-level fund managers evaluate and finance eligible companies. Founders should approach the managers whose focus matches their sector. TDB has reportedly paused fresh applications, so check each manager’s current intake.