New Delhi: A growing number of Indian deeptech startups are flipping the traditional playbook by pursuing early commercialization within the first two to three years of operations, instead of waiting 10-15 years for their technology to mature.
At least a dozen experts Mint spoke to said the trend has gained momentum over the past year, with early revenue helping startups win investor confidence and stay closer to customers as R&D matures. Firms following this approach include materials science-based manufacturing company Whizzo, electronics manufacturer CastNX, waterless solar panels self cleaning system ipanelKlean, and AI-driven energy management company Enlog, among others.
The pivot reflects a reality: India’s deeptech sector drew $1.47 billion in funding in 2025, according to Tracxn, much lower than the $179 billion in the US and $6.06 billion in China, leaving founders with far less ammo to fund pure R&D without sales.
In India, the Department for Promotion of Industry and Internal Trade defines a deeptech startup as one operating on new scientific or engineering knowledge with high R&D spend and creating intellectual property.
Experts point out that founders have realized that while product innovation is important, India values companies with revenues and revenue visibility. “We can maybe support R&D for two to three years without revenues, but beyond that, I think you have to demonstrate some revenue before people gain confidence,” said Ashish Kumar, co-founder and general partner at Fundamentum, a firm that provides Series B and Series C funding to technology startups.
It’s not that couldn’t generate revenue earlier—the bigger shift is that India’s deeptech ecosystem has matured. Investors look for commercial validation as a sign of confidence, while customers are increasingly willing to test domestic technologies through pilots, trial orders and government projects, Kumar said. While some startups are generating early revenue through projects that support their core technology, others pursue alternative revenue streams that critics said could distract from core R&D.
Take the example of Manoj Modi, managing director and chief executive officer (CEO) of CastNX, a startup that builds electrical products, including power backup solutions, motor drives, and electric-vehicle, for industrial, defence, and energy companies. In the early years, the company took on government projects during a strong push for the indigenisation of defence technologies.
“One such project was a compressor drive for the Indian Navy, which brought in nearly ₹2 crore and helped us sustain a few engineers for almost two to three years,” said Modi.
Others generate revenue through services that complement their core R&D activities. Solar technology startup ipanelKlean, for instance, earns revenue from solar plant installations, technical audits, and feasibility studies, even as it focuses on developing and manufacturing solar technologies, according to Suchin Jain, ipanelKlean’s founder.
However, founders argue that a sole focus on R&D is critical for the country to be a product nation. “For example, if I am only installing solar plants, I cannot become a global leader because there are already many established players in that market. However, if I develop a breakthrough solar technology or product, I have the opportunity to lead globally because I am creating something unique,” said Jain.
Revenue as validation
Generating early revenue, experts argue, also helps instil confidence among investors, who often view it as a sign of commercial viability. For many deeptech founders, including CastNX’s Manoj Modi, a key question from investors during early fundraising rounds was whether the company had begun generating revenue.
“I think it is almost a trend now that if any deeptech company wants to raise a reasonable amount of capital at an early stage, it has to start on the product journey by understanding which use cases the product can serve,” said Fundamentum’s Kumar.
However, many founders argue that the need to generate revenue can also distract them from their core R&D journey.
“Because of the limitations in the ecosystem, we have to generate revenue from other activities and then reinvest that money into R&D,” said a founder who did not wish to be named.