By Kunal Gala, Partner, Deal Value Creation, BDO India
“The government’s ₹1 trillion RDI Fund is more than a research initiative – it’s a structural trigger for how India’s M&A market will evolve. By funnelling capital through AIFs, DFIs, and other professional managers, the fund effectively seeds an entirely new category of acquisition-ready assets. Deep-tech, materials, and energy-transition ventures that were once too early for private capital will now mature within a de-risked funding framework. For strategic acquirers, this means the next cycle of deals won’t be about scale or distribution; it will be about buying innovation at source.
From an M&A perspective, the fund could reshape every stage of the deal lifecycle. It will create pipeline depth by institutionalising R&D ventures; it will alter valuation logic as patents and research outcomes begin driving premium pricing; and it will expand exit routes, with corporates, sovereign funds, and global strategics eyeing India’s innovation ecosystem for inorganic growth. Expect new archetypes to emerge – research spin-offs from conglomerates, RDI-backed start-ups rolled up into thematic platforms, and cross-border joint ventures formed to globalise Indian IP. In essence, the RDI Fund doesn’t just finance discovery; it builds the deal infrastructure for India’s next M&A wave.”