TDK Ventures Doubles Down on India: The Strategic Bet on Deep Tech and Hardware

In the rapidly evolving landscape of global technology, India has long been celebrated for its software prowess. However, a significant shift is underway as the nation pivots toward becoming a global powerhouse for hardware and deep tech. Leading this charge is TDK Ventures, the corporate venture capital (CVC) arm of the Japanese electronics giant TDK Corporation.

With a clear mandate to identify “Impact Scalers,” TDK Ventures has stepped up its investments in India, betting on the country’s maturing ecosystem, specialized talent pool, and the government’s “Make in India” tailwinds.

1. Why India? The Shift from Software to Deep Tech

For decades, venture capital in India was synonymous with consumer internet, fintech, and SaaS. But according to TDK Ventures, the “low-hanging fruit” of e-commerce has been picked, making way for more foundational innovation.

Several factors are driving TDK’s increased focus on the Indian market:

• Engineering Talent: India produces over 1.5 million engineers annually. While many historically went into software, a growing number are now focusing on robotics, semiconductors, and materials science.
• Maturing Ecosystem: Founders are now tackling “hard” problems that require long gestation periods and significant technical depth.
• Geopolitical Resilience: As global supply chains diversify, India’s push for indigenous manufacturing makes it an attractive hub for hardware startups looking to serve both domestic and global markets.

2. Strategic Focus: The “TDK Goodness” Approach

TDK Ventures doesn’t just provide capital; they offer what they call “TDK Goodness.” This refers to the strategic value-add that comes from being part of the TDK global network. Startups in the TDK portfolio gain access to:

1. Technical Expertise: Direct collaboration with TDK’s world-class R&D teams in materials science and sensors.
2. Global Supply Chains: Leveraging TDK’s manufacturing footprint to scale production.
3. Market Access: Connections to TDK’s global customer base in automotive, industrial, and ICT sectors.

Key Investment Pillars in India

TDK Ventures’ India strategy is concentrated on sectors that align with the global energy and digital transformation (EX and DX):

• Energy and Mobility: Investing in the next generation of EV batteries, charging infrastructure, and renewable energy storage.
• Robotics and Industrial AI: Enhancing manufacturing efficiency through autonomous systems and edge computing.
• Aerospace and SpaceTech: Supporting India’s burgeoning private space sector, particularly in launch vehicles and satellite technology.

3. High-Impact Portfolio: Scaling Indian Innovation

The firm’s commitment is evidenced by its recent high-profile investments in Indian startups that are redefining their respective industries.

EtherealX: Reimagining Space Logistics

One of TDK Ventures’ standout bets is EtherealX, a spacetech startup developing fully reusable medium-lift rockets. By tackling the “upper-stage” reusability problem—a feat few have achieved globally—EtherealX aims to drastically reduce launch costs. This investment highlights TDK’s willingness to back high-risk, high-reward hardware projects that have the potential to disrupt global markets.

Electric Mobility: Ultraviolette and Exponent Energy

TDK has also made significant moves in the EV space. By backing Ultraviolette Automotive (high-performance electric motorcycles) and Exponent Energy (rapid-charging battery technology), TDK is positioning itself at the center of India’s transition to green mobility.

“Deeptech demands a fundamentally different and nuanced approach. India is at the cusp of transformative growth in this space.” — Nicolas Sauvage, President, TDK Ventures.

4. Challenges: Navigating the “Hardware is Hard” Reality

Despite the optimism, investing in Indian deep tech is not without its hurdles. TDK Ventures and Kae Capital recently released the Deeptech India 2025 report, which identified several friction points:

• Funding Gaps: 53% of founders still find capital difficult to access compared to software-led startups.
• Investor Understanding: Nearly 45% of founders cite a lack of specialized investor knowledge as a barrier to fundraising.
• Long Gestation Periods: Hardware products often take 5–7 years to reach market readiness, requiring “patient capital” that many traditional VCs lack.

5. Looking Ahead: The Future of TDK Ventures in India

With a dedicated team led by Ravi Jain in Bengaluru, TDK Ventures is no longer just an observer of the Indian market—it is an active participant. The firm’s “India Hub” serves as a bridge, helping local innovators scale their technologies for the global stage.

As India moves toward its goal of becoming a $5 trillion economy, the role of deep tech will be pivotal. TDK Ventures’ strategy suggests that the next “iconic” global company might not be a software giant from Silicon Valley, but a hardware innovator from Bengaluru or Chennai.

Summary of TDK Ventures India Strategy