Government Approves 19 Fund Managers to Deploy Rs 7,131 Cr Under RDI Fund
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Khushi Jain
- October 14, 2026
The central government has approved 19 second-level fund managers (SLFMs) to deploy Rs 7,131 Cr from its Rs 1 Lakh Cr Research, Development and Innovation (RDI) Fund. The first cohort includes Blume Ventures, Speciale Invest and Chiratae Ventures, along with other investment funds and research organisations.
The Ministry of Science and Technology’s Empowered Group of Secretaries (EGoS) approved 14 alternative investment funds (AIFs) and five focused research organisations (FROs) earlier this month, the ministry announced on October 12.
The selected entities will channel capital from the RDI Fund to eligible technology enterprises undertaking research, development and innovation activities at Technology Readiness Level (TRL) 4 and above.
The fund managers are also expected to mobilise private capital equivalent to the RDI Fund’s contribution, potentially increasing the financing available to research-driven businesses.
Selected Fund Managers and Research Organisations
The selected AIFs include Blume Ventures, Speciale Invest, Chiratae Ventures, YourNest Capital Advisors, Sixth Sense Ventures, Celesta India, AdvantEdge Investment Managers, IvyCap Ventures, Ideaspring Capital Fund, TVS Capital Funds, AMA Capital Advisors, Translation Endeavors and Campus.
The five selected FROs include IISc Bengaluru’s AI & Robotics Technology Park (ARTP), Centre for Cellular and Molecular Platforms (CCAMP) in Bengaluru, IIT-Madras Research Park, Pilani Innovation & Entrepreneurship Development Society (PIEDS) at BITS-Pilani, and Society for Innovation & Entrepreneurship (SINE) at IIT-Bombay.
Alongside approving the first cohort of fund managers, the EGoS also approved five additional technologies for coverage under the RDI Fund. The government did not specify these technologies in its announcement.
The government said it would continue inviting applications and onboarding additional cohorts of fund managers to expand the scheme’s reach and encourage public-private investment in India’s research and innovation ecosystem.
About the RDI Scheme
Launched in November 2025, the RDI Scheme has an overall outlay of Rs 1 Lakh Cr. It aims to address the funding gap faced by companies developing high-risk, high-impact technologies.
The scheme is managed by an independent business unit housed within the Anusandhan National Research Foundation (ANRF), under the Department of Science and Technology (DST).
The fund is designed to encourage private investment in research-intensive businesses. However, its impact on investor sentiment remains unclear.
In August, The Indian Express reported that nearly two-thirds of the more than Rs 2,000 Cr allocated to deeptech companies under the scheme had gone to firms linked to members of the panel involved in selecting beneficiaries. The report raised concerns about potential conflicts of interest.
Investor Concerns Over Governance
Inc42’s Q3 2026 Indian Investor Ranking & Sentiment Survey, which covered 85 institutional investors, found that 52% considered disclosure and recusal safeguards adequate, but said visibility into the process remained limited.
Another 25% viewed the issue as a governance failure requiring independent oversight, while 14% said potential conflicts could be managed through disclosure and recusal. The remaining 9% said the issue was not a concern, arguing that the focus should be on selecting the right companies.
Deeptech Funding Growth in Q3 2026
According to Inc42’s Indian Tech Startup Funding Report, Q3 2026, deeptech startup funding in the September quarter rose 176% year-on-year to $290 Mn across 28 deals. This compared with $105 Mn across 29 deals in Q3 2025.
The sector outpaced the broader startup ecosystem, where funding grew 5% to $2.2 Bn.
FAQs
1. How much funding will the approved RDI fund managers deploy?
The government has approved 19 second-level fund managers to deploy Rs 7,131 Cr under the Rs 1 Lakh Cr RDI Fund.
2. Which venture capital firms are part of the first cohort?
The selected AIFs include Blume Ventures, Speciale Invest, Chiratae Ventures, YourNest Capital Advisors, Sixth Sense Ventures, Celesta India and others.
3. What is the objective of the RDI Scheme?
Launched in November 2025, the scheme aims to address funding gaps for companies developing high-risk, high-impact technologies and encourage private investment in research-intensive businesses.
4. Which research organisations have been selected as fund managers?
The selected FROs include ARTPARK, CCAMP, IIT-Madras Research Park, PIEDS at BITS-Pilani and SINE at IIT-Bombay.
5. How much did deeptech startup funding reach in Q3 2026?
Deeptech startup funding rose 176% year-on-year to $290 Mn across 28 deals in the September quarter, compared with $105 Mn across 29 deals in Q3 2025.
