India’s deeptech and artificial intelligence (AI) sector could offer one of the biggest investment opportunities in the world. Crane Venture Partners believes global investors still undervalue the sector. The London- and Singapore-based venture capital firm sees India as a strong market for capital-efficient technology companies. Scott Sage, co-founder and partner at Crane, made the assessment in an interview with Moneycontrol.
Crane has raised $150 million for its APAC fund. The firm expects Indian startups to receive around $100 million to $120 million from the fund. Crane has already committed to around 9 to 10 investments over the past six to eight months. It plans to build a portfolio of nearly 30 to 35 companies over the next two to two and a half years.
Crane Venture Partners Sees Strong Potential in Indian Deeptech
Crane believes India offers an attractive mix of technical talent, capital efficiency and ambitious founders. The firm sees these factors as key advantages for the Indian startup ecosystem.
Sage said Indian deeptech and AI could be the “most mispriced asset class in the world” right now. His view focuses on the potential returns that Indian companies can create compared with the capital they need to grow.
Crane believes Indian startups can build large technology businesses without raising the huge funding rounds common in Silicon Valley. This capital efficiency has strengthened the firm’s India investment thesis.
India Could Receive Up to $120 Million From Crane’s APAC Fund
Crane launched its $135 million Crane APAC Fund I in September 2025. The fund targets startups across India, Singapore, and Australia. Crane later increased the fund size to $150 million after exercising its greenshoe option.
India could account for nearly 75% to 80% of the fund’s deployment. That puts the potential investment in Indian startups at around $100 million to $120 million.
However, Crane does not view $120 million as a strict limit. The firm could increase its allocation if it finds more attractive investment opportunities.
Crane has already moved quickly in India. It has committed to around nine to 10 investments within six to eight months. The firm expects to expand its portfolio to around 30 to 35 companies.
Crane Targets AI, Robotics and Semiconductor Startups
Crane follows a focused investment strategy. Around 35% to 40% of its investments so far have gone into hard deeptech. AI also remains a major focus for the firm.
The firm currently sees strong potential in vertical AI applications. It also wants to explore foundational AI technologies. These include new architectures and technologies that could emerge beyond the current large language model (LLM) approach.
Crane is also looking at several other technology areas:
- Semiconductors
- Robotics
- AI infrastructure
- Cybersecurity
- Data infrastructure
- Other technically complex businesses
The firm focuses on startups where strong technology can create a meaningful barrier to entry.
Why India’s AI and Deeptech Startups Stand Out
Crane sees three major strengths in India’s startup ecosystem. These include technical talent, capital efficiency, and ambitious founders.
Earlier generations of Indian startups often adopted successful business models from the US and Europe. Many then focused on executing those models at lower costs.
Crane sees a change in the newer generation of founders. These entrepreneurs are building products with differentiated technology. Many also target global markets from the beginning.
This shift could create more opportunities for international venture capital firms. Investors can back Indian companies at an early stage and support their global expansion.
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Crane Plans More Early-Stage Investments in India
Crane mainly invests at the seed stage. Its initial cheques usually range from $2 million to $3 million. The firm can invest as little as $500,000 at the earliest stages. It can also invest up to $6 million in its first cheque.
The firm can participate in Series A rounds when the opportunity and round size make sense.
Crane also targets around 5X net returns from its $150 million overall strategy. The firm believes a relatively small fund can help it maintain discipline while building its portfolio.
India Becomes Central to Crane’s APAC Strategy
Crane’s India strategy goes beyond simply adding another market to its portfolio. The firm sees India as a key part of its wider APAC strategy.
The venture capital firm also expects Indian deeptech startups to face a funding challenge at later stages. Seed and Series A capital has become easier to access. However, later-stage funding remains a potential bottleneck for deeptech companies.
Crane plans to use its global network to help portfolio companies reach international investors, customers, and partners. This could support Indian startups as they expand beyond the domestic market.
For now, MassMutual Ventures remains the sole limited partner in Crane’s current vehicle. The firm wants to prove its APAC investment strategy before bringing more limited partners into future funds.
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What Crane’s India Strategy Means for Deeptech Startups
Crane’s growing focus on India highlights the rising global interest in Indian deeptech and AI startups.
The firm’s potential deployment of up to $120 million in India could give early-stage technology companies access to more global capital. Its focus on AI, robotics, semiconductors and other deeptech sectors could also strengthen funding opportunities for technically complex startups.
The investment thesis also reflects a broader change in India’s startup ecosystem. Founders are moving beyond execution-led models and building proprietary technology for global markets.
Crane now sees India as more than a cost-efficient technology hub. The firm believes Indian founders can build globally competitive AI and deeptech companies with relatively lower amounts of capital. That belief could drive more international investment into India’s next generation of technology startups.
