US-based VC pledges to back Indian semiconductor startups
Venture capital firm Celesta Capital has publicly declared its intention to invest in up to 15 early stage Indian chip companies.
Celesta Capital, which manages a fund worth around USD 1 billion, is targeting India’s booming semiconductor design sector. In an interview with Financial Express, Celesta's senior partner Gani Subramaniam said he wants to invest an average ticket size of USD 7 to USD 15 million in startups over the next few years.
He highlighted the strong government support for the semiconductor design sector and the country's strong skills base. Currently, 15% of Celesta's investments are focused on the Indian market. The firm has previously invested in companies such as Aura Semiconductors, Arzooo, Stellapps, Pixis, Connect, and Heal.
Subramaniam said: “There is a lot of risk capital available in India given the government’s push in sectors like semiconductor. India has an advantage both to tap the global competitive businesses with its technology solutions as well as cater to its own demand. India has the second biggest collection of chip designers after the US. With companies like Qualcomm and Intel working on critical component design, there is a 40 years of chip design experience in India."
