- Indian semiconductor start-ups have raised approximately $206 million across 51 funding rounds since 2022, according to the Indian Semiconductor Startup Landscape 2026 report by Speciale Invest and the Startup Policy Forum (SPF).
- In the first half of 2026, semiconductor startups raised $61.9 million, which is 81% of the $76.6 million raised in all of 2025.
- Funding rounds fell from 16 in 2024 to 13 in 2025 and seven in the first half of 2026, even as capital deployed rose sharply, indicating investors are concentrating money behind companies further along in product development and commercialisation.
- Of the 24 chip-design projects supported under the Design Linked Incentive (DLI) programme, 14 have raised institutional venture capital, collectively pulling in $100.8 million across their first and second rounds.
- Six of those DLI-backed companies have already closed follow-on rounds worth a combined $53.6 million.
- Four companies — C2i Semiconductors, NetraSemi, Morphing Machines, and Mindgrove Technologies — account for approximately 56% of all private capital raised by DLI-backed companies.
- Vishesh Rajaram, Managing Partner at Speciale Invest, said: Government support is helping companies cross expensive early technical milestones, while private investors are following with larger first cheques and follow-on capital.
- Arjun Rao, co-founder and General Partner at Speciale Invest, emphasized that the next generation of investable semiconductor companies in India will not come from chip design alone, highlighting the need for deep technical IP and strong founding teams.
Indian semiconductor startups have raised approximately $206 million across 51 funding rounds since 2022, with $61.9 million raised in the first half of 2026 alone, which is 81% of the total raised in 2025. This shift in investor interest reflects a trend towards fewer but larger investments in companies that are further along in product development and commercialization.123
The number of funding rounds has decreased from 16 in 2024 to 13 in 2025, and seven in the first half of 2026, indicating a concentration of capital on more mature startups. Of the 24 chip-design projects supported under the Design Linked Incentive (DLI) programme, 14 have raised institutional venture capital, totaling $100.8 million across their initial rounds. Six of these companies have closed follow-on rounds worth a combined $53.6 million.45
Four companies—C2i Semiconductors, NetraSemi, Morphing Machines, and Mindgrove Technologies—account for approximately 56% of all private capital raised by DLI-backed companies. Vishesh Rajaram, Managing Partner at Speciale Invest, noted, “Government support is helping companies cross expensive early technical milestones, while private investors are following with larger first cheques and follow-on capital.” He emphasized the need for these companies to transition from design to scaled products and repeat customers.67
According to Arjun Rao, co-founder and General Partner at Speciale Invest, “The next generation of investable semiconductor companies in India will not come from chip design alone.” He highlighted the importance of combining deep technical IP with strong founding teams and access to growth capital to achieve significant product exits.8
“The report shows investor focus shifting to fewer, larger bets, with funding rounds falling from 16 in 2024 to seven in H1 2026 even as capital deployed rose. Four DLI-backed companies—C2i Semiconductors, NetraSemi, Morphing Machines, and Mindgrove Technologies—account for 56% of private capital raised by such firms.”
