Anmol Maini, general partner at Untitled Ventures, ignited controversy by stating that most deeptech startups in India will prove to be a grift within a decade, according to economictimes.indiatimes.com. His comment came in response to AI startup Neosapien CEO Dhananjay Yadav, who highlighted the funding disparity between deeptech firms and quick commerce startups burning large capital to capture market share.
Yadav pointed out that deeptech startups generate significantly more revenue with less capital burn but struggle to raise funds compared to quick commerce companies. The debate unfolded on X, with investors and entrepreneurs weighing in. VC Deedy Das explained the difficulty in backing deeptech ventures stems from challenges in underwriting returns, the need for heavy capital expenditure, slow revenue generation, and regulatory hurdles, which deter typical investors without deep industry expertise.
The discussion underscores a broader issue in India's startup ecosystem where capital allocation favors quick-return sectors over long-term deeptech innovation. This contrasts with the US, where investment in future technologies is more robust. Deeptech startups require patient capital and specialized knowledge to navigate technical and regulatory risks, which many Indian investors currently lack, limiting the growth potential of this sector.
The debate highlights the urgent need for more informed investment strategies in India’s deeptech space. Untitled Ventures’ Maini’s remarks have sparked widespread dialogue on the future of capital deployment, with the ecosystem closely watching how funding patterns evolve for deeptech startups in the coming years.