The RDI Fund Row, PM’s I-Day Address & More

The RDI Fund, a ₹1 Lakh Cr initiative aimed at unlocking capital for deeptech startups, has faced scrutiny over allegations of opaque processes and conflicts of interest. Fifteen of the 22 companies selected in the first round reportedly shared investment ties with members of the selection panel. While the government claimed that conflicted members disclosed their interests and had no role in evaluating proposals, critics argue that such disclosures may not be sufficient to protect against conflicts of interest involving active industry participants.

Many deeptech founders also claim the application process was not widely communicated, potentially favoring startups already connected to the ecosystem. Additionally, concerns have been raised about RDI's fund-of-funds scheme, with emerging fund managers criticizing the first cohort's preference for experienced managers with larger networks and stronger fundraising records.

The next test for the RDI Fund will be whether subsequent allocations can demonstrate transparent, non-concentrated bets, and whether increased disclosure and independent oversight can restore confidence in the fund. Meanwhile, at the national level, Prime Minister Narendra Modi addressed the nation on India's 80th Independence Day, announcing plans to train over 1 Cr young people in AI skills and investing in semiconductor manufacturing.

However, Indian startups saw a significant drop in funding, raising just $139.5 Mn last week, down 44% from the previous week. Cleantech emerged as the most funded sector, with three startups raising $9.2 Mn on the back of Yulu's $93 Mn raise. The week ended mixed for startup stocks, with 30 stocks ending in the green and 29 declining.