Central government-backed ₹1 Lakh Cr Research, Development and Innovation (RDI) Fund has approved 19 second-level fund managers (SLFMs) with a total commitment of ₹7,131 Cr.
The Ministry of Science and Technology’s Empowered Group of Secretaries (EGoS) approved 14 alternative investment funds (AIFs) and five focused research organisations (FROs) for this purpose earlier this month, the ministry announced.
The selected entities will channel capital from the RDI Fund to eligible technology enterprises undertaking research, development and innovation activities at Technology Readiness Level (TRL) 4 and above.
The fund managers are also expected to mobilise private capital equivalent to the RDI Fund’s contribution, potentially expanding the pool of financing available to research-driven businesses.
Alongside approving the first cohort of fund managers, the EGoS approved five additional technologies for coverage under the RDI Fund. The government did not specify these technologies in its announcement.
The government said it would continue inviting applications and onboarding additional cohorts of fund managers, expanding the reach of the scheme and encouraging public-private investment in India’s research and innovation ecosystem.
Launched in November 2025, the RDI Scheme has an overall outlay of ₹1 Lakh Cr and aims to address the funding gap faced by companies developing high-risk, high-impact technologies. It is managed by an independent business unit housed within the Anusandhan National Research Foundation (ANRF), under the Department of Science and Technology (DST).
The fund is designed to spur private investment in research-intensive businesses. However, its impact on investor sentiment, however, remains unclear. In August, The Indian Express reported that nearly two-thirds of the more than ₹2,000 Cr allocated to deeptech companies under the scheme had gone to firms linked to members of the panel involved in selecting beneficiaries. The report raised concerns about potential conflicts of interest.
Inc42’s Q3 2026 Indian Investor Ranking & Sentiment Survey, which covered 85 institutional investors, found that 52% considered disclosure and recusal safeguards adequate, but said visibility into the process remained limited.
Another 25% viewed the issue as a governance failure that required independent oversight, while 14% said potential conflicts could be managed through disclosure and recusal. The remaining 9% said the issue was not a concern, arguing that the focus should be on selecting the right companies.
As per Inc42’s ‘Indian Tech Startup Funding Report, Q3 2026’, deeptech startup funding in the September quarter zoomed 176% YoY to $290 Mn raised across 28 deals, compared with $105 Mn across 29 deals in Q3 2025. The sector outpaced the broader startup ecosystem, where funding grew 5% to $2.2 Bn.
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