Now Reading: L&T, Gaja Capital step up deeptech bets as India funds grow
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L&T, Gaja Capital step up deeptech bets as India funds grow
L&T Innovation Fund, the corporate venture capital arm of Larsen & Toubro, is shifting focus to India's deeptech startups after mostly investing abroad. The fund, which has made eight global investments including…
The Story in Brief
L&T Innovation Fund, the corporate venture capital arm of Larsen & Toubro, is shifting focus to India's deeptech startups after mostly investing abroad. The fund, which has made eight global investments including AI cybersecurity firm Cyfirma, plans to back Indian startups at earlier technology readiness levels, said Sushma Kaushik, head of the fund, at L&T's Manthan event. Indian deeptech funding has reached $2 billion across 179 deals so far in 2026, up from $1.6 billion in all of 2025, per Tracxn.
Gaja Capital, a private equity firm, is also increasing time spent on deeptech and AI opportunities, with coverage growing 50% in these areas, said co-founder Gopal Jain. The firm recently invested in AI startup Sarvam's Series B round. Gaja has filed for a Rs 656-crore IPO with Sebi. Domestic PE firms are warming to deeptech as startups show revenue potential, though deal volumes have dipped from 433 in 2025 to 179 this year.
The Indian Opinion
Both L&T and Gaja are chasing the same trend: deeptech is India's next big thing. But the numbers tell a mixed story. Deal value is up, yet volume is down sharply, meaning fewer startups get funded. The touted $2 billion in 2026 funding is still modest next to global peers. The real test is whether these investors write follow-on cheques when startups hit scale, or stick to early bets. Watch Sarvam's next round and L&T's first Indian deal. That will show if this is durable capital or just pilot projects.
Sources (2): livemint.com, livemint.com (2)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
