Karnataka unveils Rs 600-crore-plus plan for DeepTech; explores co-investment model with VCs

Karnataka government on November 3 unveiled its ambitious 'DeepTech Decade' plan, committing over Rs 600 crore to position the state as the DeepTech capital of India.

Speaking to reporters, IT-BT Minister Priyank Kharge said the investment aims to create a robust pipeline of entrepreneurs working on artificial intelligence (AI), machine learning (ML), quantum computing, advanced manufacturing, robotics, and sustainability-driven innovations.

The Rs 663 crore investment will include Rs 150 crore for the DeepTech Elevate Fund, which will focus on AI and frontier technologies; Rs 80 crore under the Elevate Beyond Bengaluru Fund to support startups in Mysuru, Mangaluru, Hubballi-Dharwad, and Kalaburagi; and Rs 75 crore through the Karnataka IT Venture Fund (KITVIN) for equity-based investments in DeepTech and AI startups, with funding ranging from Rs 50 lakh to Rs 2 crore.

The government has also allocated Rs 48 crore to establish new incubators and accelerators at IIT and IIIT Dharwad and Kalaburagi, along with Rs 110 crore for business incubators in higher education institutions across 11 colleges to nurture early-stage innovation and entrepreneurship.

Co-investing model

Kharge said the government is exploring co-investing models and fund-of-funds mechanisms with venture capital firms to ensure a continuous flow of capital and scalability for startups. “We are in discussions with leading venture capital firms to create a joint Rs 1,000 crore fund for DeepTech and AI startups in Karnataka. Our blueprint is ready, and we are serious about being global players in the technology landscape,” he said.

The announcement comes ahead of the 28th edition of the Bengaluru Tech Summit (BTS 2025), scheduled from November 18 to 20, 2025, at the Bangalore International Exhibition Centre (BIEC).

“A major highlight of the summit will be the Future Makers Conclave (FMC), India’s largest entrepreneurship platform for young innovators and disruptors,” said Kharge.

“For the first time, the conclave will feature international participation, with global startups showcasing their innovations in India and Indian startups presenting their technologies to global markets. FMC, scheduled for November 20, will bring together over 10,000 founders, investors, mentors, and ecosystem leaders. The programme will feature keynote sessions by leading entrepreneurs and investors, startup showcases, mentoring clinics, and networking opportunities”, he said.

N Manjula, secretary, Department of Electronics, IT, BT & S&T, said that the shift of BTS to the BIEC venue has enabled the government to plan larger and more ambitious programmes such as the Future Makers Conclave. She added that the modern infrastructure and improved connectivity at BIEC will allow the summit to host global participants and deliver an expanded experience for innovators and investors alike.

Under the theme ‘Futurise,’ BTS 2025 will feature over 500 speakers, 20,000 delegates, 1,000 exhibitors, and an estimated 50,000 business visitors from more than 60 countries. The event will cover ten curated tracks, including AI and DeepTech, Defence and SpaceTech, Electronics and Semiconductor, DigiHealth and Biotech, Energy and Mobility, Fintech, and EdTech.