India's Deeptech Fund Faces Scrutiny Over Conflicts of Interest
The first allocation from India's RDI Fund for deeptech startups has drawn criticism regarding transparency and potential conflicts of interest. An independent review is being considered.
India's ambitious ₹1 Lakh Crore (approximately $1.2 trillion) fund for Research Development and Innovation (RDI) in deeptech startups is facing scrutiny. The maiden allocation of ₹21.92 crore (approx. $263 million) to 22 companies has sparked concerns over opaque processes and potential conflicts of interest.
Reports indicate that 15 of the 22 selected companies have investment ties with seven members of the selection panel. Beneficiaries include Ather, Agnikul, and Dhruva Space, which collectively received ₹13.77 crore (approx. $165 million) of the disbursed capital. While government officials stated that conflicted members declared their interests and recused themselves from evaluation, critics question the adequacy of these measures.
Industry stakeholders are concerned that active industry participants allocating public funds could create undue influence. Many are calling for an independent review of the first round of allocations. Furthermore, several deeptech founders have alleged a lack of widespread communication regarding the application process, suggesting that a first-come, first-served policy might have favored well-connected startups.
The RDI Fund's credibility will depend on future allocations demonstrating transparency and diversity. Greater disclosure of interests, evaluation criteria, and allocation decisions, alongside independent oversight, is expected to rebuild confidence. Stakeholders hope that subsequent rounds will support emerging fund managers and early-stage ventures, rather than reinforcing existing capital structures.