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C2i Semiconductors Raises $15M for AI Chip Design Under Govt's DLI Scheme

C2i Semiconductors, a Bengaluru-based chip design startup supported under the government's Design Linked Incentive (DLI) scheme, has raised $15 million in a Series A round led by Peak XV Partners. The funding will accelerate development of its power-management semiconductor solutions for next-generation AI data centers and cloud infrastructure. The startup's technology uses a "grid to core" approach to redesign electricity flow inside servers, aiming to improve reliability and efficiency for high-performance AI systems. The DLI scheme, announced in 2022, is designed to reduce upfront risk for semiconductor ventures and strengthen India's domestic design ecosystem.

Key Points: Chip Startup C2i Raises $15M for AI Power Management

  • $15M Series A led by Peak XV
  • Supports DLI scheme-backed chip design
  • Targets power management for AI data centers
  • Cumulative funding reaches ~Rs 170 crore
2 min read

Govt's DLI scheme-backed C2i Semiconductors raises fresh funds

Bengaluru-based C2i Semiconductors, backed by India's DLI scheme, secures $15M from Peak XV to develop power solutions for AI data centers.

"C2i's approach to power management can significantly extend GPU lifespan and unlock billions of dollars in industry savings. - Rajan Anandan"

New Delhi, Feb 16

C2i Semiconductors, a Bengaluru‑based chip design startup supported under the government's Design Linked Incentive scheme, has raised $15 million in a Series A funding round led by Peak XV Partners, bringing its cumulative investment from private investors to roughly Rs 170 crore, it was announced on Monday.

The latest funding round follows a $4 million raise in 2024 and, together with DLI support, will accelerate development of power-management semiconductor solutions for next-generation AI data centres and cloud infrastructure, according to an official statement.

Recognising the potential of C2i's breakthrough solution, Peak XV Partners (formerly Sequoia Capital India & SEA) has led a $15 million investment round to accelerate the development of next-generation, high-density and ultra-reliable system-level power delivery solutions.

This follows a $4 million funding round led by Yali Capital in 2024, taking the cumulative investment raised to approximately Rs 170 crore to date, in addition to the support received under the DLI Scheme.

Rajan Anandan, Managing Director at Peak XV, noted that C2i's approach to power management can significantly extend GPU lifespan and unlock billions of dollars in industry savings.

The startup redesigns how electricity flows inside a server from the incoming power source to the processor chip using a grid to core approach, it added.

The new technology works as an intelligent power control system for data centres, helping high-performance AI systems operate reliably, efficiently and continuously for next-generation digital infrastructure.

India's semiconductor programme is built to strengthen both design and manufacturing, with a strong focus on creating domestic intellectual property and globally competitive product companies, the ministry cited the government's vision, quoting Union Minister Ashwini Vaishnaw.

India's semiconductor chip design ecosystem is steadily strengthening, with startups supported under the DLI scheme drawing growing interest from both investors and the user community.

Semiconductor ventures traditionally involve long development timelines, substantial R&D investment and higher technical risk before revenues begin.

The DLI Scheme, announced in 2022, addresses this challenge by reducing upfront risk through financial support, access to advanced EDA tools, IP cores etc, the statement said.

Startups are onboarded through a rigorous screening and evaluation process by a competent expert committee comprising technical and industry specialists, ensuring support to credible deep-tech companies.

This structured intervention continues to improve investor confidence and commercial viability, leading to investors actively evaluating DLI-supported startups, the ministry said.

- IANS

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Reader Comments

P
Priya S
Power management for AI data centres is a critical niche. If C2i's tech can extend GPU life and save costs, it's a game-changer. Hope they succeed and create high-quality engineering jobs here in Bengaluru.
R
Rohit P
Good step, but we need to see actual products and commercial adoption. Many startups get funding, but the real test is competing globally. The DLI support is crucial to de-risk such deep-tech ventures.
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Sarah B
Investing in semiconductor design is smart. Manufacturing fabs require massive capital, but design lets India leverage its software talent. Hope this encourages more engineers to enter hardware.
V
Vikram M
Rs 170 crore is significant for a hardware startup. The government's role in providing EDA tools and IP access through DLI cannot be overstated. It levels the playing field. More power to C2i!
K
Karthik V
While I applaud the initiative, I hope the "rigorous screening" for DLI is truly transparent and merit-based. Public money must be used wisely to support only the most credible tech, not just well-connected founders.
A
Ananya R
This is the kind of news that makes me proud. From IT services to creating core semiconductor IP for AI – that's real progress. Wishing the team

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