RDI Fund Picks 19 Fund Managers With Rs 7,131 Crore: What Deep-Tech Startups Should Know

The government has approved its first cohort of fund managers under the Rs 1 lakh crore Research, Development and Innovation (RDI) Fund. Nineteen institutions were selected, with a commitment of Rs 7,131 crore between them, the Department of Science and Technology said in a statement on October 12, 2026.

If you are building a deep-tech or R&D-heavy company, this matters more than most funding headlines. It means more doors through which RDI money can reach you, beyond the two bodies that have handled it so far.

What was announced

The Empowered Group of Secretaries approved the cohort at a meeting on October 8. It is made up of:

• 14 alternative investment funds (AIFs), which are venture capital-style funds.
• Five focused research organisations (FROs), which can channel capital towards research and commercialisation.

These are called second-level fund managers. The government has not yet released the names of the 19, as The Economic Times reported. ET listed some firms that had applied, but being an applicant does not mean being selected, so wait for the official list before pitching anyone as an "RDI fund".

Competition was stiff. Moneycontrol reported around 163 applications from venture capital firms and research organisations; ET's sources put it at more than 160 venture capital firms.

How the RDI Fund works

According to the coverage, the scheme has a two-tier structure:

• A government-backed Special Purpose Fund, housed within the Anusandhan National Research Foundation (ANRF), puts money into the selected fund managers.
• The fund managers then finance eligible companies. For venture capital funds, the RDI Fund invests as a limited partner, so the money reaches startups as investment from that fund.

A few rules that shape who can benefit:

• Technology Readiness Level (TRL) 4 and above. The money is for companies doing research, development and innovation that has moved beyond the early research stage but still needs development and financing before commercial deployment. A pure idea or lab concept is too early.
• Government support is capped at 50 percent of the assessed project cost, Moneycontrol reported. The rest is expected to come from private investors or the company itself.
• Fund managers must bring matching private capital equal to the RDI contribution.
• Target areas named in the reports include artificial intelligence, robotics, quantum technology, biotechnology and space. The group of secretaries also approved five additional technologies for coverage, though the reports don't name them.

The fund was approved by the Union Cabinet in July 2025 with an outlay of Rs 1 lakh crore over six years (Moneycontrol), and ET describes the scheme as launched in November 2025. The first call for fund manager applications opened in January 2026.

A commitment is not cash in the bank

ET's source was careful to separate commitments from drawdowns. The Rs 7,131 crore is committed, not released upfront. Money flows as each fund manager raises its matching private capital and finds eligible companies to back. So don't expect these funds to start writing cheques the week the list comes out.

Why this helps: the TDB queue

So far, the RDI Fund has relied mainly on the Technology Development Board (TDB) and the Biotechnology Industry Research Assistance Council (BIRAC). TDB has been busy:

• Moneycontrol reported that TDB received more than 230 proposals since April, including around 175 between June and September, and committed around Rs 2,900 crore across 35 projects in its first two cohorts.
• ET reported that by April 2026, TDB had received 124 proposals and approved 22 projects, with assistance of Rs 2,192 crore against a total project cost of Rs 4,744 crore. Companies such as Dhruva Space, Agnikul Cosmos, The ePlane Company, Ather Energy, GalaxEye and Noccarc Robotics have received approval.

The demand led TDB to pause fresh applications from September 30. Its September 29 notification cited "administrative reasons", and Moneycontrol reported the aim was to clear the evaluation backlog, not a shortage of funds. Adding 19 fund managers creates more channels for the same pool of capital.

What's still unknown

• The names of the 19 fund managers. Not released yet.
• How a startup applies to them. No process for companies has been announced. Each fund manager will presumably run its own pipeline, but nothing official says so yet.
• When TDB reopens. No date has been reported.
• The second cohort. The government said it will keep inviting applications and onboard more cohorts of fund managers in the coming months, and ET's sources said a second cohort would be announced shortly. Funds not selected this time can reapply.

What this means for you

• Check your TRL honestly. If you are at TRL 4 or above, you are in scope. If not, this isn't your route yet.
• Plan your matching money. With government support capped at 50 percent of project cost, line up private investors or your own contribution now, so you can move when a fund manager opens its doors.
• Get your technical and financial case ready. TDB's detailed technical and financial assessment slowed its pace. Expect similar scrutiny, and have a clear development plan, budget and milestones on paper.
• Watch for the official list. Once the 19 names are public, you will know which funds to approach. Until then, be wary of anyone claiming to be an approved RDI fund manager.
• If you are a fund or research organisation: the government says more cohorts are coming, and those not selected can use the evaluation feedback to reapply.

Cover photo: ThisisEngineering on Unsplash