'It’s the best time to be an angel investor,' says Peak XV’s Rajan Anandan on India's deeptech boom
Anandan revealed Peak XV now allocates 15–20% of its portfolio to deep tech, up from zero three years ago.
India’s deeptech ecosystem is witnessing an unprecedented boom, creating what veteran investor Rajan Anandan calls “season time” for angel investors.
Anandan revealed Peak XV now allocates 15-20% of its portfolio to deeptech, up from zero three years ago: “If you’re not a deeptech investor, you’re missing the future.”
The managing director of Peak XV Partners (formerly Sequoia India) urged entrepreneurs and backers to seize the moment. “It's a phenomenal time to be an angel investor. Since I'm with the firm, I no longer angel invest, but if I could, this would be the perfect season. It's like gearing up for the big game—there are so many fascinating ideas emerging in India right now. It’s truly an exciting time," Anandan said during a panel discussion at the Startup Mahakumbh.
The event, which is being held from April 3 to 5, aims to bring together over 3,000 startups, 1,000 investors, and 10,000 international delegates, alongside 50,000 business visitors.
Yet hurdles remain, particularly in Series A funding, according to Sateesh Andra, Managing Partner, Endiya Partners. “Deeptech startups aren’t revenue-ready yet, and that’s where they have to cross the chasm,” he said.
To sustain deep tech’s momentum, panelists advocated regulatory reforms, including extending startup recognition periods to 12-15 years. “It’s time to recognize deep tech as a category with longer horizons,” said Anil Agrawal, a member of the Competition Commission of India.
Agrawal recalled that when the formal definition of a startup was first established for government incentives in 2016, it covered a period of five years from incorporation. This definition was broadened in 2017 to include biotech startups, extending the recognition period to seven years. In 2019, during the angel tax revisions, the eligibility period was further extended to 10 years.
Agrawal suggested that it might be time to create a separate category for deep tech startups, allowing them to be recognised for a longer duration—perhaps 12 or even 15 years.
He proposed expanding the Startup Ranking Framework by introducing a new criterion to evaluate how well states support the deep tech startup ecosystem.
Agrawal noted that just as many states have developed their own seed funds, they could also establish dedicated deep tech Series A funds.
Edited by Affirunisa Kankudti
