 Morning Dispatch |
VCs chase deeptech; AI takeaways from ET's WLF
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Happy Monday! Specialist VC funds are expanding beyond their traditional sectors to invest more in deeptech. This and more in today’s ETtech Morning Dispatch.
Also in the letter:
■ Flipkart tightens seller rules
■ Asaya bags fresh funds
■ Urban Company vs Kent
Specialist venture capital firms are widening their investment horizonsas deeptech emerges as a larger part of India’s startup pipeline. Tracxn data reviewed by ET shows funds including Omnivore, Ankur Capital, Avaana Capital, Aavishkaar Capital and Incubate Fund Asia India have increased investments beyond their traditional sectors since 2024.
What’s changing:
Why now?
(L-R) ETtech's Samidha Sharma in conversation with Fireflies AI's Krish Ramineni, Wispr Flow's Tanay Kothari, Peak XV Partners MD Shailendra J Singh and SiMa AI's Krishna Rangasayee at ET’s World Leaders Forum.
Venture capital (VC) firms are becoming “somewhat marginal” in the artificial intelligence (AI) investment cycle as the sector requires much larger pools of capital, Peak XV Partners managing director Shailendra Singh said on Saturday.
Singh was speaking at The Economic Times World Leaders Forum 2026 in New Delhi on August 21-22.
On corporates’ role: Singh said large companies will need to play a bigger role in funding AI startups, as corporate balance sheets can support investments beyond the reach of most VC funds. He pointed to HCLTech’s investment in Sarvam AI and Amazon’s backing of Anthropic.
VCs will remain important for spotting and backing companies early, but enterprises will need to become a larger source of capital as the AI cycle expands, he said.
ETtech's Samidha Sharma in conversation with Zingroll's Harshit Yadav, Menlo Ventures's Deedy Das and Wispr Flow's Tanay Kothariat at ET’s World Leaders Forum.
Meanwhile, Menlo Ventures partner Deedy Das said India faces challenges in building globally competitive foundational AI companies, citing a concentration of top research talent in San Francisco and limited appetite for high-risk investments.
On Anthropic: Das was also bullish on Anthropic ahead of its public listing, saying a potential $2 trillion valuation would still undervalue the company. Bloomberg reported this week that Anthropic expects its initial public offering to match or exceed SpaceX’s record IPO.
Also Read: AI agents can automate work, but not leadership
Flipkart has introduced a new seller penalty policy for delayed shipments and order cancellations with effect from August 23, a move that comes ahead of the traditionally busy festive season at the ecommerce firm.
Tell me more:
Small brands that are new to ecommerce are likely to be impacted by the newly introduced fine, according to industry executives and sellers.
L-R Mandeep Bhatia, Neeraj Biyani and Eeti Sharma, cofounders, Asaya
Asaya raises Rs 88 crore: Direct-to-consumer (D2C) skincare brand Asaya has raised Rs 88 crore funding from RPSG Capital, OTP Ventures, Huddle Ventures, Hyperscale Ventures, and 72 Ventures, at a post-money valuation of Rs 400 crore.
Urban Company sues Kent RO: Urban Company has sued water purifier maker Kent RO Systems in the Delhi High Court over an ad campaign that allegedly called the two-year service and filter life offered on its Native purifiers a “marketing gimmick”, and said that using the product was “unsafe” and “risky”, the company said in an exchange filing on Sunday.
Explained: Why OpenAI and Anthropic are suddenly talking about privacy: Enterprise data privacy became the battleground for AI companies this week, with OpenAI and Anthropic making moves this month that reverse or challenge their previous positions.
■ This company’s plans to deploy space mirrors could jeopardize the night sky for many (MIT Technology Review)
■ GTA 6 leaks - a nightmare or a blip for the biggest video game of the year? (BBC)
■ A dumpling shop becomes a poster child of AI adoption in China (Rest of World)
Also in the letter:
■ Flipkart tightens seller rules
■ Asaya bags fresh funds
■ Urban Company vs Kent
Sector-focussed funds look to ride deeptech wave, expand horizons
Specialist venture capital firms are widening their investment horizonsas deeptech emerges as a larger part of India’s startup pipeline. Tracxn data reviewed by ET shows funds including Omnivore, Ankur Capital, Avaana Capital, Aavishkaar Capital and Incubate Fund Asia India have increased investments beyond their traditional sectors since 2024.
What’s changing:
- Agri-focused Omnivore is in advanced talks to invest in robotics startup Perceptyne, which has signed a term sheet to raise $10 million from Premji Invest at a $50 million valuation.
- Aavishkaar is evaluating spacetech opportunities, while its upcoming Next Gen Fund will count deeptech and artificial intelligence among its core areas.
- Incubate Fund Asia, traditionally focused on fintech, consumer and business-to-business supply chains, is looking to invest in advanced manufacturing, deeptech and spacetech via its fourth fund.
- Investors say the pipeline itself has shifted, with more founders building in robotics, biotech, advanced materials and other frontier technologies.
- Omnivore’s Mark Kahn said deeptech businesses today offer greater perceived defensibility and clearer exit potential than a few years ago.
- Government-backed capital is adding momentum, with the Rs 1 lakh crore Research, Development and Innovation Fund and Startup India Fund of Funds 2.0 prioritising deeptech and technology-led manufacturing.
VCs becoming marginal in AI cycle, enterprises should invest in the sector: Peak XV’s Shailendra Singh
Venture capital (VC) firms are becoming “somewhat marginal” in the artificial intelligence (AI) investment cycle as the sector requires much larger pools of capital, Peak XV Partners managing director Shailendra Singh said on Saturday.
Singh was speaking at The Economic Times World Leaders Forum 2026 in New Delhi on August 21-22.
On corporates’ role: Singh said large companies will need to play a bigger role in funding AI startups, as corporate balance sheets can support investments beyond the reach of most VC funds. He pointed to HCLTech’s investment in Sarvam AI and Amazon’s backing of Anthropic.
VCs will remain important for spotting and backing companies early, but enterprises will need to become a larger source of capital as the AI cycle expands, he said.
Meanwhile, Menlo Ventures partner Deedy Das said India faces challenges in building globally competitive foundational AI companies, citing a concentration of top research talent in San Francisco and limited appetite for high-risk investments.
On Anthropic: Das was also bullish on Anthropic ahead of its public listing, saying a potential $2 trillion valuation would still undervalue the company. Bloomberg reported this week that Anthropic expects its initial public offering to match or exceed SpaceX’s record IPO.
Also Read: AI agents can automate work, but not leadership
Flipkart introduces penalties for sellers over despatch delays, cancellations
Tell me more:
- Sellers will have to pay Rs 30-60 per shipment if an order is not dispatched by the agreed date or if the seller cancels the order after it is placed, according to a policy document seen by ET.
- Under the new policy, sellers will have to pay Rs 90 per order if they breach the dispatch by date (DBD) and subsequently cancel the order.
- DBD refers to a set date and time given by Flipkart to the sellers to dispatch the orders.
Small brands that are new to ecommerce are likely to be impacted by the newly introduced fine, according to industry executives and sellers.
Other Top Stories By Our Reporters
Asaya raises Rs 88 crore: Direct-to-consumer (D2C) skincare brand Asaya has raised Rs 88 crore funding from RPSG Capital, OTP Ventures, Huddle Ventures, Hyperscale Ventures, and 72 Ventures, at a post-money valuation of Rs 400 crore.
Urban Company sues Kent RO: Urban Company has sued water purifier maker Kent RO Systems in the Delhi High Court over an ad campaign that allegedly called the two-year service and filter life offered on its Native purifiers a “marketing gimmick”, and said that using the product was “unsafe” and “risky”, the company said in an exchange filing on Sunday.
Explained: Why OpenAI and Anthropic are suddenly talking about privacy: Enterprise data privacy became the battleground for AI companies this week, with OpenAI and Anthropic making moves this month that reverse or challenge their previous positions.
Global Picks We Are Reading
■ This company’s plans to deploy space mirrors could jeopardize the night sky for many (MIT Technology Review)
■ GTA 6 leaks - a nightmare or a blip for the biggest video game of the year? (BBC)
■ A dumpling shop becomes a poster child of AI adoption in China (Rest of World)
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