The RDI Fund Row, PM’s I-Day Address & More

India’s Deeptech Fund Hits A Hurdle

India’s ₹1 Lakh Cr RDI fund promised to unlock patient capital for deeptech startups. However, its maiden allocation has sparked concerns of opaque processes. 

The allegations follow a report that emerged earlier in August which found that 15 out of the 22 companies selected in the first round shared investment ties with seven members of the selection panel. The beneficiaries, including Ather, Agnikul, Dhruva Space and others, received ₹1,377 Cr of the total ₹2,192 Cr disbursed capital. 

Responding to allegations of conflicts of interest, the government said that conflicted members disclosed their interests and had zero involvement in evaluating or approving the proposals. 

The Network Effect Concern: The bigger concern among critics is if disclosures and recusals are adequate protection against such conflicts of interest, when active industry participants help allocate public money. Hence, many are seeking an independent review of the first round. 

Many deeptech founders we spoke to also alleged that the application process was not communicated widely, adding that the first-come, first-serve policy may have favoured startups already connected to the ecosystem. 

The Transparency Question: Emerging fund managers also raised concerns over RDI’s fund-of-funds scheme. Although the guidelines allow newer AIFs to apply, some investors said that the first cohort appeared to have favoured experienced managers with larger networks and stronger fundraising records. 

The Next Test: The upcoming test for the RDI fund hinges on whether subsequent allocations can demonstrate transparent, non-concentrated bets. Greater disclosure of interests, evaluation criteria and allocation decisions could help restore confidence, while independent oversight may strengthen credibility. 

Stakeholders in the startup ecosystem believe the upcoming allocations need to support emerging managers and early-stage deeptech ventures, rather than reinforce existing capital hierarchies.

With ₹1 Lakh Cr and countless other startups at stake, why is the RDI Fund suddenly in the middle of a major controversy? Let’s find out…

From The Editor’s Desk

PM Modi’s I-Day Address

• Addressing the nation on the occasion of India’s 80th Independence day, PM Narendra Modi said that over 1 Cr young people will be trained in AI skills over the next year. The programme will be centred on three priorities: cost, quality and skill. 
• PM Modi also announced that the government will leverage India’s digital public infrastructure to offer free online coaching to aspirants preparing for competitive examinations.
• The PM also said that production has begun at three semiconductor plants in the country. He also expects another seven to eight facilities to become operational over the next one to two years.

Weekly Funding Takes A Hit

• Indian startups cumulatively managed to raise $139.5 Mn last week, down 44% from $274.4 Mn raised in the preceding week. Deal count also took a hit and nearly halved week-on-week to 12.
• On the back of Yulu’s $93 Mn fundraise, cleantech emerged as the most funded sector last week. Advanced hardware and technology saw the highest deal activity last week, with three startups in the space bagging $9.2 Mn.
• Early-stage funding also picked up pace last week as five seed stage startups raised around $14 Mn. Meanwhile, Lightspeed India, Finvolve and Peak XV Partners emerged as the most active investors last week, backing two startups each.

Mixed Week For Startup Stocks

• Of the 60 new-age tech stocks under Inc42’s coverage, 30 ended last week in the green. The remaining 29 declined between 0.5% and 14%. Meanwhile, Meesho ended the week on a flat note.
• While Turtlemint and E2E gained the most last week, Veefin and ideaForge emerged as the major losers. The combined m-cap of the 61 listed startups, including recently listed LEAP India, stood at $162.73 Bn as against $151.98 Bn in the preceding week. 
• With the Q1 FY27 earnings season now largely over, investors are expected to turn their attention to global monetary policy, crude oil prices and geopolitical developments as market cues this week. 

EaseMyTrip’s Subdued Q1

• The online travel aggregator slipped into the red in Q1 FY27, posting a net loss of ₹11.7 Cr compared to a net profit of ₹44 Lakh in the year-ago period. The loss comes despite the OTA’s operating revenue jumping 18.4% YoY to ₹134.7 Cr.
• Largely to blame for the travel tech platform’s  losses was expenses zooming nearly 30% YoY to ₹152.7 Cr in Q1 FY27. What also played a spoilsport was the revenues from trains, buses and other services taking a big hit during the quarter.
• On the operational front, EMT claimed that its gross booking revenue grew 14.8% YoY to ₹2,371 Cr in Q1 FY27, while quarterly hotel night bookings almost doubled YoY to 6.47 Lakh. 

Ola Electric’s Energy Frontier

• Bolstering its energy stack, the EV maker has launched three battery energy storage systems: the residential Ola Shakti Gen 2, the commercial and industrial Shakti Rack and the utility-scale Mahashakti platform.
• Powered by Ola Electric’s in-house 4680 Bharat cell, Shakti Gen 2 will be offered in 4.6 kWh/3 kW and 9.2 kWh/6 kW configurations and will be priced at ₹99,000 and ₹1.75 Lakh, respectively. Deliveries scheduled to begin in November this year.
• Ola Electric is attempting to build a second revenue engine with energy storage as its EV business continues to remain under pressure. The BESS push could also improve utilisation of its Gigafactory and help spread manufacturing investments.

Inc42 Markets

Inc42 Startup Spotlight

How DUSQ Is Guiding Indians Back To A Good Night’s Sleep

India ranks as the second most sleep-deprived country globally. While wearables do offer general trends on nightly rest, they report the damage only after waking. To solve this, DUSQ is combining neuroscience, hardware and AI to improve sleep quality in real time.

DUSQ’s Sleep Science: Founded in 2023, DUSQ is building what it calls a sleep regulation platform. Instead of simply scoring sleep quality, its behind-the-ear device monitors physiological signals through the night and aims to intervene when the body begins shifting into a disrupted state.

The Closed-Loop Stack: The startup’s 12-gram wearable uses signals such as electrodermal activity, heart-rate variability, respiratory rate and other autonomic markers to identify sleep fragmentation. It then adapts its response using non-invasive vagus and vestibular nerve stimulation, with the goal of guiding users back towards deeper sleep before they fully wake.

Eye On The Prize: DUSQ claims to have become the fastest Indian healthtech company to cross $1 Mn on Kickstarter, after launching its US campaign in June 2026. It is now preparing for a broader US rollout, positioning itself at the intersection of consumer healthtech and neurotechnology. So, can DUSQ actively improve the night sleep rather than just measure it?

Infographic Of The Day

From AI astrologers to quick prasad deliveries, India’s spiritual ecosystem is quietly going digital. Behind it is a $70 Bn+ market where startups are reimagining how millions of Indians practise their faith. Here is all about it…

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