Bengaluru-based C2i Semiconductors has secured $15 million in a Series A funding round led by Peak XV Partners. This marks the largest funding round raised by an Indian semiconductor startup to date. The round follows a previous $4 million investment led by Yali Capital in 2024, bringing the company's total funding to approximately $19 million, equivalent to roughly ₹170 crore, in addition to support received under the government's Design Linked Incentive (DLI) Scheme.
C2i Semiconductors was incorporated in Bengaluru on June 5, 2024, by founders with prior experience at companies including Texas Instruments, National Semiconductor, and Maxim Integrated. The company was approved for the DLI Scheme effective November 1, 2024, gaining financial support and access to advanced electronic design automation (EDA) tools. It has become one of the top three users among 100 companies utilizing the centralized EDA tool grid at the ChipIN Centre under the scheme. The company's engineering team has expanded to 65 engineers.
The startup focuses on developing intelligent power-management semiconductor solutions targeted at next-generation AI data centers and cloud infrastructure. It addresses challenges in modern data centers where growing AI workloads demand large, stable power supplies. Existing power systems, not originally designed for continuous high-density computing, result in energy losses, excess heat, reliability issues, and scaling difficulties.
C2i is implementing a "grid to core" approach to power delivery, redesigning electricity flow from the incoming source to the processor chip. Rather than optimizing individual components, the company is building a smart, configurable power platform that manages and optimizes power in real time. This is intended to deliver stable power for heavy AI workloads, improve energy efficiency, reduce heat and failures, extend equipment lifespan, simplify server design, enable faster deployment, and facilitate large-scale data center expansion.
The company describes its technology as an intelligent power control system for data centers, supporting reliable and efficient operation of high-performance AI systems. C2i expects its first silicon designs to return from fabrication by mid-2026, followed by performance validation.
Peak XV Partners led the investment to support acceleration of the company's development of high-density, ultra-reliable system-level power delivery solutions. Rajan Anandan, Managing Director at Peak XV, stated that C2i's approach to power management could extend GPU lifespan and generate significant industry savings.
The funding aligns with India's semiconductor strategy, as outlined by Union Minister Ashwini Vaishnaw, which emphasizes strengthening both design and manufacturing capabilities, fostering domestic intellectual property, and building globally competitive product companies. The government supports startups through design incentives, advanced tools, IP access, and ecosystem development to position India as a partner in the global semiconductor sector.
The DLI Scheme, introduced in 2022, provides financial assistance, EDA tools, IP cores, and other resources to reduce upfront risks in chip design. Startups undergo screening by an expert committee of technical and industry specialists. This has contributed to increased investor interest in DLI-supported companies, as semiconductor ventures typically involve extended development periods, high R&D costs, and technical risks before revenue generation. Prior to 2021, venture capital in India's semiconductor sector was limited.
News Source: PIB
