New Delhi, February 16: C2I Semiconductors, a Bengaluru-based chip design startup, has successfully raised $15 million in a Series A funding round led by Peak XV Partners under the government’s Design Linked Incentive (DLI) scheme. This brings the total investment in the company to approximately ₹1.7 billion from private investors, as announced on Monday.
According to an official statement, this funding follows a previous $4 million raised in 2024. With the support from the DLI scheme and this new funding, C2I aims to accelerate the development of power management semiconductor solutions for next-generation AI data centers and cloud infrastructure.
Peak XV Partners, formerly known as Sequoia Capital India and SEA, invested $15 million, recognizing the potential of C2I’s innovative technology. This investment is expected to expedite the development of high-density and highly reliable system-level power delivery solutions.
In 2024, C2I also received $4 million in funding led by Yali Capital, bringing the total investment to around ₹1.7 billion, in addition to the support from the DLI scheme.
Rajan Anandhan, Managing Director of Peak XV, stated that C2I’s power management technology could extend the lifespan of GPUs and save the industry billions of dollars. The company has redesigned the flow of electricity within servers, utilizing a ‘grid-to-core’ approach that ensures a more efficient and secure power flow from the power source to the processor chip.
This new technology acts like a smart power control system for data centers, enabling high-performance AI systems to operate reliably, efficiently, and continuously—essential for future digital infrastructure.
According to Union Minister Ashwini Vaishnaw, India’s semiconductor program is designed to strengthen both design and manufacturing, aiming to foster intellectual property (IP) development and establish global-level product companies in the country.
India’s semiconductor chip design ecosystem is continually strengthening, with increasing interest from investors and customers in startups supported by the DLI scheme.
Typically, semiconductor startups face long development periods, substantial research and development costs, and high technical risks. The DLI scheme, launched in 2022, provides financial assistance, access to advanced EDA tools, and IP cores to mitigate these challenges.
Before being included in this scheme, startups undergo rigorous scrutiny and evaluation by an expert committee, ensuring that only reliable and deep-tech companies receive support.
The government asserts that such structured initiatives have boosted investor confidence and strengthened investment prospects in DLI-affiliated startups.
My name is Himanshu Tiwari. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including TECHNOLOGY, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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