Summary
The first cohort includes 14 alternative investment funds and five research organisations, with ₹7,131 crore in commitments approved amid scrutiny of the scheme’s selection process.
The central government’s ₹1 trillion Research, Development and Innovation (RDI) Fund has selected 19 second-level fund managers (SLFMs) in its first cohort, according to the Ministry of Science & Technology.
A second-level fund manager receives money from the government’s RDI Fund and deploys it to fund startups and companies developing new technologies. The capital can be provided through low-interest loans or equity investments. These fund managers include alternative investment funds (AIFs), non-banking financial companies (NBFCs) and focused research organisations (FROs), such as IIT research parks.
The Empowered Group of Secretaries (EGoS), at a meeting held on 8 October 2026, approved 14 AIFs and five FROs, with total RDI Fund commitments of ₹7,131 crore. FROs are specialised organisations that support research and development in specific technology areas.
The approved AIFs include Speciale Invest Growth Fund, YourNest Capital Advisors, Chiratae Ventures, Kalaari Capital Partners India, Celesta India AIF Managers, AdvantEdge Investment Managers, IvyCap Ventures Advisors, Ideaspring Capital, Blume Ventures, TVS Capital Funds, AMA Capital Advisors, Translation Endeavors and Campus. Consumer-focused Sixth Sense Ventures was also selected.
The five approved FROs are AI & Robotics Technology Park (ARTP) at IISc Bengaluru, the Centre for Cellular and Molecular Platforms (CCAMP) in Bengaluru, IIT Madras Research Park (IITMRP) at IIT Madras, Pilani Innovation & Entrepreneurship Development Society (PIEDS) at BITS Pilani, and the Society for Innovation and Entrepreneurship (SINE) at IIT Bombay.
This was first reported by Moneycontrol. Until press time, the ministry had not replied to Mint’s queries.
“Applications received under the call underwent a rigorous, multi-stage evaluation process, including detailed objective assessment of applications and in-person interactions with an Expert Advisory Committee. Following this process, the proposals were placed before the Executive Council of ANRF and subsequently before the Empowered Group of Secretaries (EGoS) for consideration and approval,” the government said in a statement.
Patient capital
Industry stakeholders said the approval of commitments is an important step for India’s deeptech ecosystem. The shortage of long-term, patient capital for high-risk research has long held back private investment in emerging and strategic technologies.
“Deeptech founders feel this most. Their companies take years to move from the lab to the market, and few investors have been willing to stay with them that long. By channelling capital through funds and research organisations, RDIF goes straight at that gap and gives private investors more confidence to back deeptech alongside it,” said Shweta Rajpal Kohli, president and chief executive officer of Startup Policy, an industry platform that represents India’s new-age companies.
The announcement comes after Jyoti Sharma, head of the RDI Cell, told Mint in August that the ₹1 trillion RDI Fund, launched by the government to promote big-ticket investments in cutting-edge technology firms, was set to hold its final meeting to choose the next tranche of second-level fund managers.
“For second-level fund managers, the process is already moving very fast. We are now just waiting to take the final call. Our final meeting is due in the next couple of weeks,” Sharma had told Mint on the sidelines of an event in New Delhi in August.
Selection scrutiny
The development comes amid scrutiny of the RDI Fund’s selection process. An Indian Express investigation in August alleged that 15 of the 22 startups funded in the first tranche of RDI investments had links to seven members of the selection committee, raising concerns over potential conflicts of interest.
Earlier, on 31 July, the Press Information Bureau had said that “a comprehensive and robust conflict of interest policy is firmly in place at TDB (Technology Development Board)”.
Announced in January 2025, the RDI scheme was formally launched by Prime Minister Narendra Modi on 3 November 2025. The first tranche of funding largely went to space startups, which received ₹833.89 crore from the initial corpus, Mint reported on 10 June.
About the Author
Nabodita Ganguly
Nabodita is a New Delhi-based journalist who covers India’s startup ecosystem and venture-capital landscape. She enjoys reporting on emerging companies, funding trends, founders, and the policies shaping the innovation economy. Before this, she worked with Outlook Business and The Hindu Businessline. When she’s not chasing stories, you’ll find her with a cup of coffee, watching a good comedy, or getting lost in a book. She believes there’s always a good story waiting to be discovered, sometimes in a boardroom and sometimes over a great cup of coffee.