If it works in India, it can work anywhere: TDK Ventures’ Nicolas Sauvage on building deeptech for the world

Deeptech is built on difficult scientific or engineering work. It usually requires more than writing code. Companies may need to develop new hardware, materials, energy systems, semiconductors, or launch technologies. Ordinary software startups can often test products quickly with existing platforms and tools. Deeptech companies usually face longer development cycles, higher technical risk, and greater capital needs.

The article’s examples show the difference. The Guild is developing a fully reusable medium-lift launch vehicle. C2i Semiconductors built power-management technology for AI data centres. Exponent Energy developed battery-management systems and fast-charging technology. These products depend on physical engineering and technical performance, not only user adoption.

This distinction matters because deeptech founders must plan for manufacturing, testing, customers, and scale early. India had more than 4,200 deeptech startups in 2025. Their progress shows that advanced engineering can become a commercial opportunity, especially when founders use local constraints to build globally useful capabilities.

India’s deeptech ecosystem has reached meaningful scale. The country is home to more than 4,200 deeptech startups. Together, they raised $2.3 billion in 2025. That was 37% more than the amount raised the year before, according to a Nasscom–Zinnov report.

The growth reflects more than rising investment. Nicolas Sauvage said India’s best scientists are increasingly staying in the country and choosing startups instead of corporate laboratories. He described this as one of the biggest changes in Indian deeptech during the past five to 10 years. More founders are also attempting technically difficult projects that would have seemed less likely earlier.

The ecosystem is still developing, but its momentum is clear. TDK Ventures considers India its second-largest market by investment count and opened its first office outside the United States in Bengaluru. Continued growth will depend on strong customers, suitable investors, and early planning for international scale.

Sauvage’s central argument is that Indian deeptech companies should not design only for India and postpone global expansion. International markets often require long sales cycles, strict performance, and dependable scale. Building toward those requirements early can shape better products, partnerships, and operating systems. It also prevents founders from discovering too late that their design cannot meet overseas needs.

India offers a useful starting point. Sauvage identified space as an area where India has a clear advantage, supported by decades of institutional investment through ISRO. He also praised Indian founders for resourcefulness under constraint, or jugaad, and for world-class capital efficiency. Those traits can help teams solve hard problems with limited resources.

The opportunity is already attracting international attention. TDK Ventures opened its Bengaluru innovation hub in 2023, and India became its second-largest market by investment count. Founders who plan globally from the start can turn Indian capabilities into products customers elsewhere value.

Difficult operating conditions force startups to solve practical problems early. Teams cannot rely on abundant capital, simple distribution, or one easy customer. They must make systems affordable, flexible, and reliable. Sauvage links this resourcefulness to jugaad, which he described as creating something valuable and useful despite massive constraints.

Exponent Energy demonstrates the mechanism. Its long-term aim was megawatt-scale charging for intercity buses, but it began by supplying battery-management systems to three-wheeler makers. India’s market had more than 70 manufacturers, so Exponent could deploy across many companies in Bengaluru and beyond. That gave it repeated real-world experience and a base for further development.

This kind of fragmented-market exposure can reveal problems that a single large customer might hide. It can also help a startup prove performance across different vehicles and operating environments. If the resulting product succeeds in India, it may be better prepared for customers in more structured international markets.

Exponent Energy started with three-wheelers because its final target was difficult to reach directly. The company wanted to build megawatt-scale fast charging for intercity buses, but it needed an accessible first market. Supplying battery-management systems offered a practical way to deploy its technology, learn quickly, and establish credibility.

India’s three-wheeler sector was highly fragmented, with more than 70 manufacturers at the time. Exponent could work with several makers in Bengaluru and beyond instead of waiting for one major bus company to approve an untested system. Those deployments created operating experience across different customers and provided a base for later development. The first product therefore matched the market it could enter, while supporting the larger ambition.

The strategy also reflected a global-sales reality. Sauvage said a German startup would not easily convince BMW, or a US startup General Motors, to adopt its BMS immediately. India gave Exponent a more open route to early customers and product validation.

Corporate venture capital can support a startup through commercial access, not only funding. Sauvage said founders should choose investors whose specific superpowers match the company’s needs at each stage. For a deeptech startup, the right investor may help it find customers, understand industry requirements, and move from a technical prototype toward adoption.

The article specifically identifies a corporate investor’s go-to-market channel and an early anchor customer as valuable contributions. TDK Ventures is the corporate venture arm of TDK Corporation, an electronics company. Its position in that industry can make its network and market understanding relevant to startups working on semiconductors, power systems, batteries, or related technologies. Those connections can complement a founder’s own technical strength.

The benefit is especially important in deeptech because products are complex and buyers may be cautious. An investor with the right commercial or technical reach can shorten the path to testing and sales. Founders should therefore evaluate investors by the capability they add, not simply by the size of the cheque.

These technologies are foundational because they provide the physical systems that other industries depend on. Semiconductors process and control information. Power-management systems deliver electricity efficiently to chips. Batteries store and release energy for vehicles. Launch vehicles carry equipment into space. Without such components, major digital, transport, and space ambitions cannot operate at scale.

The article shows this through AI. Sauvage said the conversation has shifted from tokens and compute to electrons and gigawatts. That means the systems delivering power to AI chips have become strategically important. C2i Semiconductors, founded by former Texas Instruments engineers, built power-management technology for AI data centres. Infineon Technologies acquired the startup in 2026.

Other examples point to the same pattern. Exponent is developing fast charging, while The Guild is developing a reusable medium-lift launch vehicle. These companies work on enabling infrastructure. Their progress can affect how quickly larger sectors expand, making foundational deeptech commercially significant.