DLI-backed C2i Semiconductors raises $15 million from Peak XV, marking largest funding round for Indian chip startup
India’s semiconductor chip design ecosystem is gaining momentum, with startups supported under the government’s Design Linked Incentive (DLI) Scheme attracting significant investor interest. In a major development, Bengaluru-based C2i Semiconductors has raised $15 million in a Series A funding round led by Peak XV Partners – marking the largest funding round secured by an Indian semiconductor startup to date.
The funding milestone signals growing confidence in India’s deep-tech semiconductor design capabilities, a sector traditionally considered high-risk due to long development cycles, heavy R&D investment and delayed revenue generation.
Government Support Boosts Investor Confidence
Launched in 2022, the Design Linked Incentive Scheme aims to reduce upfront risk for chip design startups by offering financial support, access to advanced Electronic Design Automation (EDA) tools, intellectual property cores and ecosystem backing. Startups are selected through a rigorous screening process conducted by an expert committee of technical and industry specialists.
The structured policy support has improved commercial viability and encouraged venture capital participation in the sector, which had seen limited funding before 2021.
C2i’s Focus: Intelligent Power for AI Data Centres
Founded in Bengaluru on June 5, 2024, C2i Semiconductors was approved for DLI support effective November 1, 2024. The founding team brings decades of experience from global semiconductor leaders such as Texas Instruments, National Semiconductor and Maxim Integrated.
The company is developing intelligent power-management semiconductor solutions designed for next-generation AI data centres and cloud infrastructure – an area where energy stability and efficiency have become critical challenges.
As AI workloads intensify, modern data centres require highly stable and large-scale power supply systems. Traditional power architectures often struggle with energy losses, excessive heat generation and scalability limitations.
C2i is addressing this by redesigning power delivery within servers through a “grid-to-core” approach. Instead of upgrading isolated components, the company is building a configurable power platform capable of dynamically managing and optimising electricity flow in real time.
The technology aims to deliver stable power for high-density AI workloads, improve energy efficiency, reduce heat and hardware failures, extend equipment lifespan and enable faster data centre deployment at scale. The company expects its first silicon designs to return from fabrication by mid-year for performance validation.
C2i has rapidly expanded its engineering team to 65 members and has emerged as one of the top three users among 100 companies accessing the centralised EDA tool grid at the ChipIN Centre under the DLI Scheme.
Largest Funding Round for an Indian Chip Startup
Peak XV Partners (formerly Sequoia Capital India & SEA) led the $15 million Series A investment to accelerate development of C2i’s high-density and ultra-reliable power delivery solutions. The round follows an earlier $4 million investment led by Yali Capital in 2024, taking the total capital raised to approximately ₹170 crore, in addition to DLI support.
Rajan Anandan, Managing Director at Peak XV, said C2i’s approach to power management could significantly extend GPU lifespan and unlock substantial cost savings for the AI infrastructure industry.
Aligning with India’s Semiconductor Vision
The development aligns with the government’s broader semiconductor strategy under the leadership of Union Minister Ashwini Vaishnaw, who has emphasised strengthening both chip design and manufacturing in India.
The government’s vision focuses on building domestic intellectual property, enabling globally competitive product companies and positioning India as a trusted semiconductor partner worldwide.
