Gulf investors eye India’s AI infrastructure and space tech even as broader interest stays subdued

Dubai: Gulf-based investors, including the non-resident Indian diaspora, are selectively exploring opportunities in India's artificial intelligence infrastructure and space technology sectors, even as broader interest in Indian investments remains subdued amid currency depreciation and a shift towards dollar-denominated assets, according to wealth managers in the region.

Data centre operator Yotta, the Hiranandani Group company which is learnt to be making a $150-200 million pre-IPO fundraising, recently tapped the Gulf market and held a roadshow in Dubai earlier this month. "It was a very successful event with a great turnout of both NRI diaspora and local families," according to an industry source. The company is expecting $30-35 million worth of commitments from investors in the region, he said.

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Yotta earlier this year raised $150 million at a valuation of $3.9 billion to fund expansion of its AI infrastructure. The company is expected to file its draft red herring prospectus (DRHP) in the coming weeks with plans for a listing in the first quarter of 2027. It did not respond to queries emailed by ET.

The interest in Yotta comes as Gulf investors seek exposure to India's emerging technology businesses, even as wealth managers indicated limited appetite for broader Indian equity and private-market investments.

Pixxel Space Technologies, an Indian space technology startup, is also exploring fundraising opportunities in the UAE, according to ASK Wealth Advisors.

"We've seen a very strong investor appetite for AI play in India. The broader Indian market is extremely challenging right now. That's why the FCNR(B) window seemed very exciting, and a lot of money from the region flowed into it, while the broader Indian market continues to face headwinds," said Prateek Pant of DIFC-based ASK Wealth Advisors.

The Reserve Bank of India's special Foreign Currency Non-Resident (Bank) (FCNR[B]) dollar deposits scheme mobilised about $133 billion by the window close on August 31. "Corporate earnings are not particularly bad; it is more a question of sentiment at the moment, driven partly by the rupee," Pant added.

The Indian rupee has depreciated by about 5.87% against the US dollar so far in 2026, moving from about 89.96 a dollar at the start of the year to around 95.24.

"Last year, there was much more interest in the Indian market, when investors were discovering the market and were considerably more excited. Until recently, activity had been subdued, though not completely absent," said Ashish Marwah, director and chief investment officer at Neovision Investment Fund Management in Abu Dhabi.

"Investors remain very interested in AI and technology. We manage funds that have investments from banks, and these investors are still very excited about the technology opportunity. But there is no broad-based interest in India yet," he added

Meanwhile, Bengaluru- and Los Angeles-headquartered Pixxel, a planetary infrastructure company, raised $100 million in a Series C round, co-led by Temasek and Seraphim, in September is learnt to be raising more capital.

"The NRI diaspora is increasingly interested in such opportunities, whereas traditionally, NRIs have largely invested in public markets. Emerging sectors are now becoming accessible to offshore investors through fund vehicles based in jurisdictions such as Mauritius," Pant said.