How Ria Rustagi is Building India’s Deep Tech Future with Psychedelic

In a compelling episode of The BIGSTORY Podcast, Ria Rustagi, founder of Sychedelic (formerly of Neuphony), shared her journey from a personal tragedy to pioneering India’s first AI-powered neurotech headphones. These aren't just headphones; they are a sophisticated interface designed to track brain activity and actively shift mental states through neuromodulation.

This observation article, explores the profound impact of deep tech on mental well-being and the challenges of building hardware in India.

From Personal Grief to "Punk Tech"

Ria’s entry into deep tech was fueled by a deeply personal "pain point". In 2016, her sister was misdiagnosed with cervical pain for a year, only to discover a severe brain infection that led to a fatal stroke at age 25.

• The Mission: This tragedy led Ria to realize the critical importance of monitoring brain activity, or EEG (Electroencephalogram), which she likens to an "ECG for the brain".
• The First Venture: She co-founded Neuphony (under the parent company Punk Tech, named after her sister Pankhuri) to create wearable EEG devices that monitor stress, focus, and sleep markers.
• The Pivot: After raising 23 crores and seeing the limitations of purely research-focused tools, Ria made the bold decision to shut down Neuphony, ensure investor exits, and build Psychedelic—a product designed for direct consumer impact.

The Science of Neuro-Modulation

Psychedelic represents a "4-in-1" category: premium audio, mood tracking, health monitoring (similar to wearable rings), and active neuromodulation.

• Real-Time Intervention: Unlike standard headphones, Psychedelic uses EEG and heart rate monitoring to provide quantitative feedback. If a user is stressed, the device recommends specific soundscapes or uses neuromodulation to lower the heart rate and calm brain activity within 20 minutes.
• Engineering vs. Medical: Ria treats understanding the brain as an engineering problem. By building recommendation engines and algorithms for audio stimulation, the device has achieved a 92% user-reported effectiveness rate.
• Target Audience: The product isn't just for "audiofiles" but for "Hustlers"—people compromising sleep and focus for their dreams—providing them with a tool to clear "brain fog" as effectively as multiple shots of caffeine.

Building Deep Tech in India

Building a hardware-based deep tech company in India is notoriously difficult. Ria shared the stark realities of capital requirements and regulatory hurdles.

Despite these challenges, Psychedelic is positioned as one of the most affordable neurotech products globally, priced at an MRP of ₹25,000 to remain "premium affordable" in the Indian market.

Ethical Entrepreneurship

One of the most striking parts of Ria’s story is her commitment to doing right by her stakeholders.

• Investor Integrity: When transitioning from Neuphony, she used 12–13 crores to provide early angel investors with a 1x exit when the company was still performing well, simply because it was the right thing to do. This integrity led many of those same investors to return for her next venture.
• Sustainability & Longevity: The headphones are designed with a modular "thesis"—parts like cushions and electrodes are replaceable and reusable to reduce electronic waste.
• Transparent Success: After her appearance on Idea Baaz, her conversion rates spiked; for every 10 people who saw the product, 4 purchased it—a massive 40% conversion rate driven by trust and the credibility of the platform.

Observation & Final Thought

Ria Rustagi is not just selling a gadget; she is advocating for a shift in how we perceive mental performance. By framing mental health through the lens of "productivity" and "hustle," she is breaking the stigma that often prevents people from seeking help. Her story serves as a masterclass for Indian entrepreneurs on the necessity of resilience, ethics, and the courage to build physical solutions for biological problems.

Watch the full podcast here: How Deep Science is Rewiring Your Brain