What's happening
TVS Capital Funds plans at least six investments across deeptech and manufacturing from its latest fund — two to three in each of deeptech and manufacturing, plus a couple in financial services — managing partner Krishna Ramachandran told Mint in an interview published October 20, 2026.
The firm is prioritising specialised areas such as AI infrastructure, defence, space, aviation and electronic components, with an emphasis on businesses that own proprietary intellectual property. Ramachandran also cautioned against stretched AI valuations, signalling a bar for defensible tech over hype.
The RDI connection
TVS Capital is among the 14 second-level fund managers selected by the government's ₹1 lakh crore Research, Development and Innovation (RDI) Fund — the first cohort of which carries combined commitments of ₹7,131 crore. The firm has applied for a ₹200 crore commitment into its latest fund, which is sized at ₹4,000 crore, though formal confirmation is awaited.
For deeptech founders, the message is clear: patient, IP-focused capital is lining up — but it will flow to teams with real technology moats, not AI wrappers.
Why it matters for founders
The RDI Fund is quietly re-pricing deeptech in India: government-anchored capital plus private managers means longer runways for hard-tech bets. For founders, the winning pitch is shifting from growth curves to IP ownership — patents and proprietary systems are becoming the new traction metrics.