- The L&T Innovation Fund, the corporate venture capital (CVC) arm of Larsen & Toubro, is shifting focus to India's deeptech startup ecosystem after mostly investing abroad, according to head Sushma Kaushik.
- The fund has made eight investments globally, including AI-driven cybersecurity company Cyfirma and a company building digital twins for water treatment plants, with most portfolio companies operating in industrial AI.
- The fund typically writes first cheques of $1-10 million and keeps its stake below 20%; while overseas investments targeted TRLs 7 or 8, it plans to back Indian startups earlier at TRLs 4 or 5.
- Indian deeptech funding has grown sharply since 2023, when total funding stood at $901 million across 468 deals, and in 2026 funding has hit $2 billion across 179 deals, indicating high-conviction bets are attracting larger cheques.
- The fund's interest in Indian deeptech comes as investor appetite strengthens amid government efforts to promote indigenous technologies in areas such as space, quantum computing, defence, and telecom.
- Besides capital, the fund provides support in partnerships, empanelments, engagements with customers, and go-to-market efforts.
- Kaushik said India's appeal lies in engineering-led founders building IP-driven businesses alongside improving access to capital.
- Domestic corporate venture capital activity lags global peers, with global CVCs like Bertelsmann India Investments, TDK Ventures, and Qualcomm Ventures being more active; Kaushik attributes this to finding synergies rather than unwillingness.
L&T Innovation Fund, the corporate venture capital arm of Larsen & Toubro, is refocusing its investments on India's deeptech ecosystem after primarily investing abroad.12
Sushma Kaushik, the fund's head, stated, “We've begun setting up the groundwork to help us get more comfortable with the Indian tech ecosystem.” This shift comes as investor appetite for Indian deeptech has strengthened, driven by government initiatives promoting indigenous technologies in sectors like space, quantum computing, defence, and telecom.10
The fund has made eight global investments, including in AI-driven cybersecurity and digital twin technologies, but plans to support Indian startups at earlier technology readiness levels (TRLs) 4 or 5, compared to TRLs 7 or 8 for overseas investments.567
Kaushik emphasized, “If a company is at TRL 4 or 5, we want to help take them to 7 or 8.” The fund typically invests between $1-10 million and aims to keep its stake below 20%.
Despite the growing interest, domestic corporate venture capital activity still lags behind global peers, with firms like Bertelsmann India Investments and Qualcomm Ventures being more active. Kaushik noted, “Indian corporates are dabbling a little carefully in this ecosystem.”131415
“The fund typically writes first cheques of $1-10 million and keeps stakes below 20%, planning to back Indian startups at TRLs 4 or 5 versus overseas TRLs 7 or 8. Indian deeptech funding has surged to $2 billion across 179 deals in 2026 from $901 million in 2023, per Tracxn.”
livemint.com
