The Indian Institute of Technology Madras has inaugurated its first accelerator center in Menlo Park, California, aiming to facilitate Indian deep-tech startups in their expansion into global markets while strengthening ties between India and the United States.
The Indian Institute of Technology (IIT) Madras has officially launched its inaugural accelerator center in Menlo Park, California, as part of its Indo-U.S. Deep-Tech Corridor initiative. This event took place on May 15, 2023, and was hosted at the Indian Consulate in San Francisco, in collaboration with IIT Madras. The gathering attracted a diverse audience, including venture capitalists, entrepreneurs, startup founders, and alumni from various IIT campuses. Professor Veezhinathan Kamakoti, Director of IIT Madras, participated in the event virtually.
This new initiative was first announced during the SelectUSA Investment Summit held on May 6, 2023, and is backed by a significant investment of $7.5 million, which includes $4.5 million in greenfield funding from IIT Madras. Thirumalai Madhavnarayan, the CEO of the IIT Madras Global Research Foundation, emphasized the institution’s status as the leading engineering institute in India, noting its robust research and innovation ecosystem cultivated over the past 15 years.
“IIT Madras has built one of the best research and innovation ecosystems in the country,” Madhavnarayan stated in an interview. He continued to explain that the institute’s focus on deep-tech startups, research, consultancy, and intellectual property development has allowed it to register over one intellectual property (IP) every day. He stressed the necessity for IIT Madras to adopt a global perspective, aligning with India’s broader governmental push to establish itself as a global knowledge hub.
Madhavnarayan pointed out that many young entrepreneurs and startups emerging from IIT Madras have aspirations that extend beyond Indian borders. The initiative seeks to monetize intellectual property globally while enhancing international academic offerings, which include interdisciplinary master’s and doctoral programs, as well as professional skilling and certification courses.
Strategic Facility in Menlo Park
The newly established 4,000-square-foot office in Menlo Park is designed to serve as a launchpad for startups aiming to enter the U.S. market. “It is meant to bring Indian startups from IIT Madras to the U.S.,” said Madhavnarayan. Notably, more than half of the startups affiliated with IIT Madras have founders outside of the institution. The accelerator boasts a conversion rate of over 60% from concept to commercial enterprise.
“Now, we can also take them global,” he added. In addition to facilitating entry into the U.S. market, the Menlo Park facility will also conduct training sessions and provide space for IIT Madras research centers pursuing U.S.-based research and consulting opportunities. Madhavnarayan noted that IITM Global was formally established as a project in 2024 and later transitioned into a formal entity structure, operating overseas subsidiaries as for-profit ventures while the parent organization in India maintains its nonprofit status.
“Part of the value will be economic value added here,” he explained. “And part of the value will go back to the institute because the assets belong to the institute.” He characterized IITM Global as a growth accelerator rather than a conventional incubator, expressing optimism about potential unicorn startups in their pipeline and the possibility of initial public offerings (IPOs) for many.
Startups and Customer Acquisition
The IIT Madras incubator currently supports 511 startups, with approximately 100 new additions annually. Madhavnarayan explained that startups undergo multiple rounds of screening before being deemed ready for international expansion, emphasizing the importance of having a customer base over merely securing funding. “If you want to come outside of India, then you should be aspirational,” he stated. He underscored that customer acquisition is more crucial than funding for startups aiming to enter foreign markets.
“Funding, in my opinion, is not as important as customers,” he asserted. “If they have customers, the funding will come.” Generally, these startups validate their products in the Indian market before attempting to scale internationally. “The U.S. is a big market that embraces and adopts new technology quickly,” he noted, explaining why startups often look to the U.S. for expansion.
Collaboration and Community Engagement
Madhavnarayan discussed the importance of partnerships and support from the Indian diaspora in establishing networks abroad, particularly in Silicon Valley. “IIT Madras Global is trying to enhance collaboration in areas of innovation and entrepreneurship,” stated Dr. K. Srikar Reddy, Consul General of India in San Francisco, in an interview. Reddy noted that the initiative aims to support Indian startups while fostering international academic collaboration. IIT Madras is currently collaborating with various countries, including the UAE, Germany, the U.K., Malaysia, and the U.S.
The IIT Madras Alumni Association of North America Bay Area chapter president, Narendra Nayak, highlighted the strength of the alumni community in the Bay Area, home to nearly 3,500 IIT Madras graduates. He also mentioned that the initiative extends beyond alumni, as many participants at the event were not IIT Madras graduates. “There’s a time for everything,” Nayak remarked, alluding to the timing of the Silicon Valley expansion amid the rise of artificial intelligence-driven startups.
Venture capitalist and IIT Madras alumnus Srinivas Rao expressed his enthusiasm for how entrepreneurs can transform innovative ideas into commercially successful products, stating, “The ideas we heard at the event were excellent. We must learn how to connect.”
