RDI Fund to Deploy ₹7,131 Crore: Blume, Speciale Invest, Kalaari and Chiratae Among 19 Fund Managers

Government Approves First Cohort Under ₹1 Lakh Crore RDI Fund

The Government of India has approved the first cohort of 19 second-level fund managers under its Research, Development and Innovation (RDI) Fund, committing a total of ₹7,131 crore to support technology development, deep-tech startups and private-sector research.

The selected organisations include venture capital firms such as Blume Ventures, Speciale Invest, Kalaari Capital, Chiratae Ventures, YourNest Capital, IvyCap Ventures, Ideaspring Capital and TVS Capital Funds.

The announcement marks a significant step in implementing the government’s ₹1 lakh crore RDI scheme, which aims to make long-term capital available for high-risk, high-impact research and development projects.

What Is the ₹7,131 Crore RDI Fund Commitment?

The ₹7,131 crore commitment is part of the government's larger ₹1 lakh crore Research, Development and Innovation scheme. Rather than funding every startup directly, the scheme uses a two-tier structure in which approved second-level fund managers channel capital to eligible technology enterprises.

The Empowered Group of Secretaries (EGoS) approved the first cohort at its meeting on October 8, 2026. The approved group comprises 14 alternative investment funds (AIFs) and five focused research organisations (FROs).

The government said the selected organisations would help direct long-term capital towards research, development and innovation activities, particularly in areas where projects can require substantial investment before becoming commercially viable.

Which Venture Capital Firms Are in the First Cohort?

Several established Indian venture capital firms have been selected to participate in the first cohort.

The list includes:

• Blume Ventures

• Speciale Invest

• Kalaari Capital

• Chiratae Ventures

• YourNest Capital

• IvyCap Ventures

• Ideaspring Capital

• TVS Capital Funds

The other approved AIF managers are Celesta India AIF Managers, AdvantEdge Investment Managers, AMA Capital Advisors, Translation Endeavors and Campus.

The selection brings venture capital managers with experience in technology investing into a government-backed initiative focused on research-intensive businesses and emerging technologies.

Five Research Organisations Also Selected

Alongside the 14 AIFs, five focused research organisations have been approved under the first cohort.

These are:

1. AI & Robotics Technology Park (ARTPARK) at the Indian Institute of Science, Bengaluru.

2. Centre for Cellular and Molecular Platforms (C-CAMP) in Bengaluru.

3. IIT Madras Research Park.

4. Pilani Innovation & Entrepreneurship Development Society (PIEDS) at BITS Pilani.

5. Society for Innovation & Entrepreneurship (SINE) at IIT Bombay.

These organisations are expected to contribute to the funding and development of research-driven technology enterprises, drawing on their links with research institutions, innovators and technology ecosystems.

How Will the RDI Fund Support Deep-Tech Startups?

The RDI scheme is designed to address the financing challenges faced by companies developing advanced technologies. Such businesses can require significant capital for research, testing, product development and commercialisation before generating substantial revenue.

The selected fund managers will channel funding to eligible technology enterprises undertaking research, development and innovation at Technology Readiness Level (TRL) 4 and above, subject to the scheme’s conditions.

The government expects the selected managers to mobilise private capital equivalent to the RDI Fund contribution. This requirement is intended to bring additional private investment into technology development rather than relying entirely on public funding.

Which Technology Sectors Could Benefit?

The RDI scheme targets emerging and strategically important technologies that can strengthen India's domestic innovation capabilities.

Its priority areas include:

• Artificial intelligence and its applications.

• Robotics and automation.

• Space technology.

• Quantum technologies.

• Biotechnology and biomanufacturing.

• Pharmaceuticals and medical devices.

• Energy security and the transition to cleaner energy.

• Climate-related technologies.

• Digital technologies and the digital economy.

The programme is intended to support projects that can help develop globally competitive technologies, improve domestic capabilities and reduce dependence on imported technologies in strategically important areas. Funding will depend on eligibility, evaluation and the investment decisions of the approved managers.

Will the Entire ₹7,131 Crore Be Released Immediately?

No. The ₹7,131 crore figure represents the total commitment approved for the first cohort; it does not mean the entire amount will be transferred to the selected managers upfront.

According to The Economic Times, the amounts allocated to individual fund managers had not been publicly disclosed at the time of reporting. Disbursements will follow the prescribed process and depend on factors including the managers’ ability to mobilise private capital and deploy funding into eligible companies.

This distinction is important because a government commitment is not the same as money already disbursed or invested in startups. The actual flow of capital into companies will depend on the scheme's implementation and investment activity.

How Were the 19 Fund Managers Selected?

The government said the selection process involved multiple stages of evaluation.

The first call for applications from prospective second-level fund managers was launched in January 2026. Applications underwent an assessment of proposals and in-person interactions with an Expert Advisory Committee before being considered by the Executive Council of the Anusandhan National Research Foundation (ANRF).

The proposals were then placed before the Empowered Group of Secretaries for approval.

According to The Economic Times, more than 160 venture capital firms had applied to access the government-backed capital pool. The evaluation focused on applicants’ capabilities and expertise in deep-tech investing. Organisations not selected in the first cohort may address the feedback received and apply in subsequent rounds.

Government Plans More Cohorts

The first cohort is only the beginning of the wider RDI initiative. The government has said that it will continue inviting applications and approving additional groups of fund managers.

The government also approved five additional technologies for coverage under the fund, according to the official announcement.

Further cohorts could broaden the scheme’s reach across the startup and research ecosystem, although the pace and scale of future commitments will depend on the quality of proposals and the government’s approval process.

What Does the RDI Fund Mean for India's Startup Ecosystem?

The RDI scheme seeks to provide a financing channel for technology businesses that may find it difficult to secure sufficient long-term funding through conventional venture capital or commercial lending.

By working through approved fund managers and research organisations, the government aims to combine public funding with private investment and technical expertise. This could support companies developing technologies in areas such as AI, robotics, biotechnology, space and energy.

However, the impact will depend on how effectively the money reaches eligible businesses, whether private capital is mobilised as expected and whether supported projects can progress towards commercial products and services.

The ₹7,131 crore commitment is therefore an important implementation milestone, while the eventual outcomes will depend on fund deployment and the performance of the companies receiving investment.

Key Takeaways

• The government has approved 19 second-level fund managers under the RDI scheme.

• The first cohort includes 14 AIFs and five focused research organisations.

• The total commitment for the cohort is ₹7,131 crore.

• Blume Ventures, Speciale Invest, Kalaari Capital and Chiratae Ventures are among the selected fund managers.

• The scheme has a wider corpus of ₹1 lakh crore.

• Selected managers are expected to mobilise private capital equivalent to the RDI contribution.

• The fund targets eligible research and innovation projects at TRL 4 and above.

• The individual allocations and actual disbursements will depend on the implementation process.

• The government plans to onboard additional cohorts of fund managers.

Bottom Line

The approval of 19 fund managers under the ₹7,131 crore first cohort is a major implementation step for India's ₹1 lakh crore Research, Development and Innovation scheme. With venture capital firms and research organisations participating, the programme aims to channel long-term funding into deep-tech startups and strategically important technology projects.

The commitment is not an immediate payout of the full amount. Its success will depend on how efficiently the selected managers mobilise private capital, invest in eligible companies and help convert research into commercially viable technologies.