New Delhi, Feb 16 (NationPress) C2i Semiconductors, a Bengaluru-based chip design startup backed by the government’s Design Linked Incentive (DLI) scheme, has successfully secured $15 million in a Series A funding round led by Peak XV Partners. This latest round boosts its total investment from private investors to around Rs 170 crore, as announced on Monday.

This funding follows a previous $4 million raise in 2024, and together with DLI support, it will expedite the creation of power-management semiconductor solutions aimed at next-generation AI data centres and cloud infrastructure, according to an official statement.

Recognizing the potential of C2i's innovative solutions, Peak XV Partners (previously known as Sequoia Capital India & SEA) led the $15 million funding round to boost the development of next-gen, high-density, and ultra-reliable power delivery systems.

This follows an earlier $4 million round led by Yali Capital in 2024, bringing the total investments raised to approximately Rs 170 crore to date, alongside DLI Scheme support.

Rajan Anandan, the Managing Director at Peak XV, commented that C2i's power management strategy could significantly enhance GPU longevity and yield substantial savings for the industry.

The startup is reinventing how electrical power is distributed within servers, implementing a grid-to-core methodology from the power source to the processor chip.

This innovative technology functions as an intelligent power control system for data centres, enabling high-performance AI systems to run efficiently and reliably, thus supporting the infrastructure of the future.

India's semiconductor initiative is designed to bolster both design and manufacturing while prioritizing the creation of domestic intellectual property and globally competitive enterprises, as highlighted by the Union Minister Ashwini Vaishnaw.

The semiconductor chip design landscape in India is progressively gaining strength, with startups benefiting from the DLI scheme attracting increasing attention from investors and users alike.

Traditionally, semiconductor ventures require lengthy development periods, considerable research and development investments, and higher technical risks before they start generating revenue.

The DLI Scheme, introduced in 2022, aims to alleviate these challenges by minimizing initial risks through financial backing, access to advanced EDA tools, IP cores, and more, as noted in the statement.

Startups undergo a stringent screening and evaluation process conducted by a proficient expert committee comprising technical and industry experts, ensuring support for credible deep-tech enterprises.

This structured approach continues to enhance investor confidence and commercial viability, resulting in investors actively assessing DLI-supported startups, according to the ministry.

aar/na