Bengaluru-based chip design startup C2i Semiconductors has secured a massive $15 million in Series A funding led by Peak XV Partners, building on the support from India’s Design Linked Incentive (DLI) scheme. Announced on Monday, this infusion brings the company’s total private investment to approximately 170 crore rupees, marking a significant milestone for India’s burgeoning semiconductor ecosystem.
This latest round follows a $4 million raise earlier in 2024 led by Yali Capital. With government backing through the DLI program and fresh capital, C2i is accelerating development of next-generation power management semiconductor solutions tailored for AI data centers and cloud infrastructure. The funding will fuel innovations in high-density, ultra-reliable system-level power delivery systems.
Peak XV Partners, formerly Sequoia Capital India and SEA, identified C2i’s groundbreaking technology as a game-changer. Their investment underscores confidence in the startup’s ability to revolutionize power efficiency in high-performance computing environments. Rajan Anandan, Managing Director at Peak XV, highlighted how C2i’s power management tech could extend GPU lifespans and save the industry billions of dollars.
At the heart of C2i’s innovation is a ‘Grid to Core’ approach that reimagines electricity flow within servers. From power source to processor chip, this method ensures more efficient and secure energy delivery, functioning like a smart power control system for data centers. It enables high-performance AI systems to operate reliably, efficiently, and continuously—critical for future digital infrastructure.
India’s semiconductor push, championed by Minister Ashwini Vaishnaw, emphasizes both design and manufacturing to foster intellectual property creation and global product companies. The DLI scheme, launched in 2022, mitigates challenges like long development cycles, hefty R&D costs, and technical risks by providing financial aid, advanced EDA tools, and IP cores. Rigorous expert evaluations ensure only credible deep-tech firms receive support.
This structured initiative has boosted investor confidence, with DLI-backed startups attracting growing interest from funders and clients. As India’s chip design ecosystem strengthens, C2i’s success signals promising investment opportunities ahead, positioning the nation as a semiconductor powerhouse.