Indian startups burn cash to capture market share while deeptech firms struggle for funds. CEO’s viral...

Indian startups burn cash to capture market share while deeptech firms struggle for funds. CEO’s viral post

Dhananjay Yadav, co-founder and CEO of Neosapien, has sparked a discussion on India’s startup funding priorities after criticising investors for pouring large sums into consumer-facing businesses while deeptech startups struggle to raise capital.

In a post on X, Yadav pointed to the growing number of househelp startups spending heavily to gain market share, contrasting their fundraising activity with that of deeptech ventures that, according to him, generate significantly higher revenue with considerably lower cash burn but struggle to secure even a fraction of the funding.

Yadav argued that the imbalance exposes a fundamental weakness in India’s startup ecosystem, which aspires to build globally competitive products but invests comparatively less in long-term technological innovation than the US.

He warned that India’s ambition to become a deeptech powerhouse could remain unfulfilled if investors continue prioritising businesses addressing immediate market demand over ventures developing technologies for the future.

‘Traditional VC ecosystem is not conditioned for long-term outcomes’

Yadav’s post drew responses from users who weighed in on the challenges facing deeptech founders and the need for a shift in investment priorities.

Yesterday, she called and said, “You know, we have a fixed lunch time here. We can only eat during that time. What if I get hungry earlier? And we only get 45 minutes for lunch. I have only 3 paid leaves a month and we’re not even allowed to be more than 10 minutes late. The shift is 9 hours long. We have to work the entire day. And yesterday, my manager was rude to me too.” I asked her what he said, and she goes, “He said, if you don’t know how to do something, ask someone, but please don’t make mistakes because it’s a crucial project.” Then she goes, “How am I supposed to survive here? I’m already losing my aura, my mental health is COOKED and I’m gonna end up with dark circles. Girl, I didn't sign up for this.” 😭 I couldn't stop laughing. 🤣🤣 — Sheetal (@sheetalbytheway) October 17, 2026

One user, who said they work in the US venture capital industry and follow India’s technology ecosystem, highlighted the opportunity to channel more funding towards deeptech solutions addressing real-world problems. The user also expressed interest in connecting with Yadav to explore ways to bridge the funding gap.

Another user argued that conventional venture capital firms are often not structured to support businesses requiring longer investment horizons, particularly in deeptech. They called on India’s traditional business houses to step up investments in these ventures and suggested that a stronger sense of national commitment could encourage more investors to back technologically challenging, long-term projects.

A third user drew a comparison between Indian consumer startups and American AI startups, arguing that both categories often burn through investor money in pursuit of market dominance.

The larger debate over India’s startup funding

The discussion highlights a recurring question within India’s startup ecosystem: whether investment capital is being allocated in a way that supports the country’s long-term technological ambitions.

While consumer-facing businesses can offer investors opportunities to scale quickly and capture large markets, deeptech companies often require sustained funding for research, development and commercialisation before they can achieve significant scale.

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