AI Investment VC

General Catalyst to expand investment in India’s AI, spacetech

• ByStartupStory     |    December 17, 2025

General Catalyst, the US-based venture capital firm, plans to ramp up investments in India’s AI and spacetech ecosystems as part of a broader strategy targeting up to $1 billion in deployments over the next few years.

Multi-billion focus on deeptech

The firm, which recently closed an $8 billion global fund, sees India as a key hub for “global resilience” plays in AI, manufacturing, defence, and spacetech. Managing Director and India CEO Neeraj Arora highlighted partnerships with conglomerates and bets on startups like supply chain platform Magma, drone maker Raphe mPhibr, and defence tech firm Constelli.

General Catalyst is also eyeing AI layers beyond infrastructure—model builders, applications, and tooling—while backing spacetech for satellite systems, signal processing, and space manufacturing.

Localisation and ecosystem build

Integration with Venture Highways has scaled local operations, with plans to double India investments in five years. The firm launched the General Catalyst Institute in India to foster startup-policy dialogues, particularly on AI regulation.

Existing portfolio includes unicorns like Zepto, Spinny, and Cred, alongside healthcare (PB Healthcare) and fintech (AxiTrust). The push aligns with India’s policy tailwinds in semiconductors, defence indigenisation, and AI mission.

General Catalyst’s thesis bets on India’s talent for leapfrogging in AI-enabled sectors, creating supply chain alternatives to China, and building deterrence tech across democracies.

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