Future in focus: IIT-Madras Research Park plans 25-startup portfolio

CHENNAI: India is seeing strong interest in quantum, semiconductors, space, material science, electric vehicles and battery technology, but the country remains at an early stage in its deep-tech journey and could take another decade to emerge among the global leaders, as per Natarajan (Nat) Malupillai, Group CEO, IIT Madras Research Park.

“We are seeing enough interest in quantum semiconductors, space, material science, electric vehicles, battery technology,” Malupillai said, adding these areas could significantly enhance India’s capabilities, reduce import dependence and help manage geopolitical risks.

However, he cautioned against expecting India to become a top global player overnight. “We are still nascent. While we are beginning to see a spurt of companies coming in the space sector, some in quantum and all of that.. in the global scheme of things we are still very small in terms of where we are starting and where we are headed,” he told DT Next in a recent interaction.

“We will need to continue down the path for another decade or so to be considered to be among the world’s best,” he added, pointing to the need for market penetration and stronger ecosystems.

The comments come as the IITM Unicorn Frontier Fund-I, which recently announced its first close at Rs 450 crore, has deployed nearly Rs 55 crore in four deep-tech startups namely rocket-engine maker Hathor, quantum technology firm Quanstra, battery technology company Triolt Energy and carbon-capture startup Carbelim.

Explaining the investment thesis, Malupillai said, “We wanted to look at really deep tech companies that have a very strong bearing in terms of underlying science or engineering or technology.”

The fund is looking for “strong people, good underlying core technology, good momentum” and companies aligned with the country’s future needs.

The fund, which targets a Rs 1,000-crore corpus, plans to build a portfolio of about 25 startups, with a focus on IP-led, engineering-heavy technologies. Malupillai also defended the need for India to build capabilities even if they are not at the cutting edge globally. “Just because the world is 10 steps away, we can’t always hope to get there,” he said.

On semiconductors, he said India could not afford to focus only on advanced nodes. “We may not be ready for 2 or 4 nanometers, but we need to get there,” he said, arguing that building manufacturing and workforce capabilities was essential. The IIT Madras Research Park is also supporting a semiconductor centre with the Tamil Nadu government and TIDCO to skill the workforce.

Malupillai said the next phase would require greater industry participation. “Industries need to do more R&D or spend more on R&D. They need to invest in indigenous goods a lot more,” he said, adding Indian startups also needed greater industry patronage.“I wish it’s faster, but nevertheless, we are making progress in the right direction,” he said.