Venture capital firm Avaana Capital, in partnership with the department for promotion of industry and internal trade (DPIIT) under the Startup India programme, on Monday announced the third edition of its Grand Challenge aimed at supporting deep-tech innovation in India.

The initiative, which has emerged as a recurring platform for early-stage deep-tech startups, has received over 1,000 applications across 22 states in its previous editions and enabled more than ₹2.5 crore in non-dilutive grants, along with industry partnerships and pilot opportunities.

Focus shifts to research-stage innovation

An addition in the 2025–26 edition is a new “Emerging Pioneers” track, which will allow researchers and innovators to participate even before incorporating a startup.

This move essentially builds a pipeline for startups at the research stage itself, which is an area where India’s deep-tech ecosystem has historically faced gaps in commercialisation.

Officials said such platforms are critical to nurturing globally competitive deep-tech ventures in sectors of strategic importance.

“Platforms such as the Grand Challenge play a critical role in nurturing the next generation of globally competitive deep-tech startups emerging from India,” said Dr Sumeet Kumar Jarangal, director at DPIIT.

Aligned with strategic sectors

The latest edition will focus on six priority areas, including energy and mobility, advanced manufacturing and supply chains, space technology, artificial intelligence and automation, biotechnology, and next-generation materials.

The programme is supported by multiple government bodies, including the Department of Science and Technology, MeitY Startup Hub, BIRAC and IN-SPACe, alongside corporate and institutional partners.

Anjali Bansal, founding partner, Avaana Capital, said, “We launched the Grand Challenge three years ago in partnership with Startup India and NITI Aayog AIM with a clear ambition to build a structured, high-impact platform that identifies and accelerates early-stage frontier innovation capable of transforming critical sectors and advancing India's goals of innovation-led growth and strategic resilience."

Ecosystem-building over funding

Avaana Capital said the initiative has evolved into one of the larger platforms focused on deep-tech innovation in India, bringing together investors, policymakers and research institutions.

Winners from earlier editions are working on technologies ranging from low-carbon construction materials to hydrogen-powered propulsion systems and small gas turbines for aerospace applications, the VC firm added.

Avaana Capital said applications for the current edition will remain open until April 2, with the programme aimed at strengthening India’s deep-tech ecosystem and supporting startups build globally competitive solutions.