logo
Fostering innovation from business models to DeepTech

Fostering innovation from business models to DeepTech

The Hindua day ago
Few months back, the Minister for Commerce and Industry Piyush Goyal sparked a debate by drawing comparisons between Indian startups and their Chinese counterparts. While his comments stirred some discontent within the startup ecosystem, they also raised a crucial point — India must now shift its gaze from surface-level innovation to DeepTech.
The journey so far
If we look at our startup ecosystem journey so far, it has flourished largely on the back of business model innovation. From food delivery apps and e-commerce to fintech and gig economy platforms, startups have created new value by reimagining how services are delivered. While this has driven revenue and encouraged entrepreneurship, it's time to aim higher. As Mr. Goyal emphasised, the next frontier is DeepTech — technology grounded in scientific discovery, engineering excellence, and fundamental research.
But what is DeepTech? One will get different answers depending on who you ask. Ask around in VC circles or among founders, and the usual buzzwords emerge — AI, robotics, Internet of Things (IoT), drones etc. While these are important, DeepTech is far broader.
Material science, power electronics, advanced manufacturing, and molecular drug research are the fields which underpin critical advances in everything from energy systems and robotics to next-generation healthcare and AI hardware. For example, what makes drones both lightweight and durable? Material science. Why is China ahead in battery tech? Because companies like BYD invested early in core chemistry and engineering, and not just assembly.
DeepTech isn't about repackaging existing components. It's about bold and original work. It's about building from scratch, failing repeatedly, and pushing the boundaries of what is possible.
Building DeepTech
Understanding DeepTech is like peeling an onion with each layer revealing new dependencies and challenges. There are five core pillars which must align — a product mindset; R&D culture; technical depth; the educational ecosystem; and supportive government policies.
Product mindset is a big missing link. Let's start with a simple question. Which globally recognised product, across sectors — consumer, industrial, medical, telecom, mobility etc — have been conceived and built in India? Even in software, our supposed strength, we haven't produced tools like TensorFlow, Android, QNX, or SAP. While Indian talent leads some of the world's top companies, the DNA of product creation remains weak at home. China began by reverse engineering global products, steadily moving up the value chain, and eventually creating new products with original R&D.
A product mindset and R&D go hand in hand.
Without a culture of experimentation and long-term thinking, no amount of funding can build DeepTech. For R&D culture to flourish, founders need to dirty their hands in technicality. Great DeepTech companies are built by founders with hands-on technical expertise. Think of Google, Tesla, NVIDIA, and Microsoft. Their founders were engineers, builders, and coders. Larry Page and Sergey Brin wrote the algorithm that became Google while Bill Gates wrote software as a teenager.
To create such companies from scratch, we need founders with deep domain knowledge and an urge to solve complex problems, and not just manage teams.
Moreover, to promote technical depth, our education system needs to change its focus from tools to fundamentals. The journey towards DeepTech starts in the classroom. But how many Indian colleges teach AI or robotics from first principles, the mathematical derivation of AI or close loop control systems fundamentals? Beyond a few IITs, most focus on tool-based training, not foundational understanding. As a result, our engineers often become tool users, not tool creators.
We can emulate the likes of MIT and Stanford, where students master core theory before picking up tools. Multidisciplinary collaboration is another must. Most innovations especially in healthcare, mobility, or automation lie at the intersection of fields. Our college projects should involve multi-disciplinary student participation. We must move toward academia-industry collaboration, internships, and real-world problem-solving. In the U.S., the Defense Advanced Research Projects Agency has funded challenges that have fostered innovation in robotics, leading to breakthroughs like Intuitive Surgical's Da Vinci robot.
And finally, smarter government support will always be a catalyst. India has institutions like the National Research Development Corporation (NRDC) to promote R&D, but many of the qualifying criteria are irrational. For example, why restrict funding to startups only inside incubators? Shouldn't we evaluate based on the technical depth of the founders, the R&D roadmap, and its potential impact?
DeepTech startups often need access to fabrication labs, pilot facilities, and test and certification centres, all of which are costly infrastructure the startups themselves can't build. Micro, Small and Medium Enterprises often lack precision, and large corporations demand volumes that early-stage ventures can't deliver.
The government must create shared facilities, and affordable, high-quality spaces for low-volume, high-precision prototyping and testing. This is the only way to bridge the gap between idea and viable product.
The road ahead
India's aspiration to lead in DeepTech is both timely and necessary. But to realise this vision, we must orchestrate a coordinated shift across the entire ecosystem.
Founders must deepen technical expertise and adopt a true product plus R&D mindset. Educational institutions must prioritise fundamentals and interdisciplinary learning, and the government must offer smarter, broader, and more agile support.
Only through this kind of systemic transformation can we build world-class DeepTech products which are driven by science, born in India, and built for the world.
Bhupendra Bhate is CEO and co-founder of Saintiant Technologies Pvt Ltd, a company specialising in advanced medical devices powered by AI.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Swiss PE firm Partners Group to acquire majority stake in Infinity Fincorp for $230 mn, outbids Advent and Creador
Swiss PE firm Partners Group to acquire majority stake in Infinity Fincorp for $230 mn, outbids Advent and Creador

Mint

time17 minutes ago

  • Mint

Swiss PE firm Partners Group to acquire majority stake in Infinity Fincorp for $230 mn, outbids Advent and Creador

Swiss private equity firm Partners Group is set to acquire a majority stake in shadow lender Infinity Fincorp for ₹ 1,950 crore ($230 million), the companies said on Thursday. The transaction includes a primary capital infusion of ₹ 600 crore ($70 million) and a secondary purchase of shares from existing shareholders, including Indium IV (Mauritius) Holdings, a fund advised by True North. The companies did not disclose the percentage of the stake being acquired. Partners Group clinched the deal after outbidding rival private equity firms Advent International and Creador, both of which had also shown interest in acquiring a controlling stake in Infinity Fincorp. The ₹ 600 crore primary investment will help Infinity expand its branch network, upgrade technology systems, and improve customer onboarding processes. Infinity Fincorp, headquartered in Mumbai, provides secured loans to micro, small, and medium enterprises (MSMEs), particularly in Tier 2 and Tier 3 cities. The company operates over 120 branches across eight states and manages assets worth over ₹ 1,200 crore. This deal marks Partners Group's first step into India's MSME lending segment. Infinity Fincorp serves nearly 50,000 clients in sectors including agriculture, manufacturing, and trade, and has a workforce of over 1,500 employees. The transaction, which is pending approval from the Reserve Bank of India (RBI), will see Partners Group take over from Indium IV as the majority shareholder. Existing investor Jungle Ventures will retain a stake and participate in the new round. Avendus Capital served as the sole financial advisor to Infinity Fincorp and Indium IV for this transaction. Infinity's current leadership team, including its founder and CEO Shrikant Ravalkar, will remain in charge of operations. Established in 2016 as a subsidiary of National Bulk Handling Corporation and initially funded by Indium IV Holdings (a True North-advised fund), Infinity provides secured business loans to MSMEs in underbanked areas. It operates in eight states across western and southern India, with a network of 123 branches and 1,507 employees. The states of Andhra Pradesh, Telangana, and Tamil Nadu account for 75% of its total assets under management (AUM). Infinity primarily extends loans secured by residential or commercial property, targeting small businesses such as traders, retail shops, dairy outlets, kirana stores, and medical or provision stores. Earlier this year, the company raised $40 million in an extended Series A round led by Beams Fintech Fund, with participation from existing investors True North LLP, Jungle Ventures, and Archerman Capital. In January, it had already secured $35 million from Jungle Ventures, Archerman Capital, and Magnifico. Partners Group, which manages $152 billion in global assets, has previously invested in several Indian companies, including HR software provider Darwinbox, logistics startup Ecom Express, and retail chain Vishal Mega Mart. In April, the firm exited its investment in Ecom Express by selling its stake to Delhivery in a cash deal worth ₹ 1,407 crore, alongside co-investors Warburg Pincus and British International Investment. Beyond these, the group has also invested in CSS Corp, an IT services provider, and Aavas Financiers, a housing finance company.

Crizac share price rallies another 9%, now trades 32% higher than IPO price
Crizac share price rallies another 9%, now trades 32% higher than IPO price

Mint

time25 minutes ago

  • Mint

Crizac share price rallies another 9%, now trades 32% higher than IPO price

Crizac share price in focus today: After making a bumper debut on the Indian stock market, Crizac share price extended its momentum on Thursday, rallying another 9% to hit the day's high of ₹ 334.75 apiece in intraday trade. Crizac share price made a grand entry on the exchanges on Wednesday, listing at ₹ 281.05 on the NSE, a 14.71% premium over the IPO price of ₹ 245, and ended its first trading day even higher at ₹ 307.60. Adding to the excitement on debut day, Sunil Singhania's Abakkus Asset Manager Pvt Ltd. picked up a stake in the company during the listing itself. According to exchange data, Abakkus Asset Managers bought 36.73 lakh shares at ₹ 298.33 apiece, taking the total transaction value to approximately ₹ 109.5 crore. Taking today's intraday high into account, Crizac share price has gained 37% over its IPO price.

What's driving retail inflows into hybrid, mid- and small-cap mutual funds?
What's driving retail inflows into hybrid, mid- and small-cap mutual funds?

Mint

time26 minutes ago

  • Mint

What's driving retail inflows into hybrid, mid- and small-cap mutual funds?

Mutual funds, long seen as a way to participate in India's growth story, witnessed a strong resurgence in demand in the previous month, with total inflows reaching ₹ 49,095 crore, marking a sharp 69% increase over May's ₹ 29,108 crore and reflecting investors' confidence in the Indian economy amid ongoing global growth concerns. Among all asset classes, the equity segment continued to dominate inflows, which rose to ₹ 23,568 crore in June from ₹ 19,013 crore in May, registering a robust 24% month-on-month increase, as per AMFI data. The hybrid funds also sustained their momentum with net inflows of ₹ 23,223 crore in June, up from ₹ 20,765 crore in May, driven by continued interest in arbitrage and multi-asset allocation strategies. Meanwhile, the equity inflows were led by strong demand in Flexi Cap funds, which saw a 49% month-on-month surge to ₹ 5,733 crore. Small-cap funds witnessed a 25.2% increase in inflows to ₹ 4,024 crore, while mid-cap fund inflows jumped to ₹ 3,754 crore, marking a 33.7% rise compared to May. Despite ongoing concerns that valuations in mid- and small-cap funds remain stretched, these categories continue to attract significant interest from retail investors. Experts point out that the primary reason behind these sustained inflows is the perception that these funds offer exposure to high-growth segments of the economy. Mr. Dikshit Mittal, Senior Fund Manager – Equity at LIC Mutual Fund Asset Management, said investors are looking to gain exposure to some of the faster-growing segments of the economy, as reflected in their preference for mid-cap and small-cap funds. 'The broad-based rally in indices like the Nifty 50, accompanied by stronger gains in mid- and small-cap indices, has rekindled investor enthusiasm,' Dikshit observed. 'It seems many investors were awaiting a decisive market cue to reallocate towards equities, a cue that emerged in June, prompting renewed participation.' He further noted that the increasing preference for hybrid categories such as arbitrage funds, multi-asset allocation funds, and dynamic asset/balanced advantage funds indicates a strategic and balanced approach to portfolio construction. Mittal added that the rise in SIP contributions and consistent net equity inflows continue to support the resilience of Indian equity markets in a volatile global environment. Meanwhile, Ankur Punj, Managing Director and National Head at Equirus Wealth, remarked that the strong inflows into mid- and small-cap funds reflect growing investor confidence in India's long-term growth narrative despite global uncertainties. 'The uptick in hybrid strategies also suggests that investors are increasingly seeking a balance between growth and risk mitigation, a healthy sign of evolving market maturity,' Ankur said. 'With global rate cycles stabilising and India's earnings season underway, we expect investor focus to remain strong on thematic and multi-asset categories heading into Q2 FY26.' Amid a strong resurgence in inflows, the overall assets under management (AUM) of mutual funds swelled to ₹ 74.40 lakh crore at the end of June, marking a rise of ₹ 2.2 lakh crore from May's ₹ 72.2 lakh crore. Equity AUM now accounts for 45% of the total, standing at ₹ 33.46 lakh crore. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store