AGNIT Semiconductors, a vertically integrated Gallium Nitride (GaN) semiconductor startup, has raised $3.5 million in a seed round led by 3one4 Capital and Zephyr Peacock, their first investment in India’s semiconductor sector. The round also witnessed participation from Lakshmi Narayanan, former CEO of Cognizant and noted angel investor.
The 5-year-old Bengaluru-based startup has raised $4.87 million and plans to use the funds to scale its production and commercial operations. Additionally, the company is set to expand its offerings into new market segments, targeting consumer electronics and electric two-wheelers, and sees a sale of 1,00,000 semiconductor chips in the next 12 months.
“When you mention semiconductors, most people think of silicon. But GaN is a new semiconductor material being used in a variety of use cases, primarily in power conversion, radio frequency, and electronics. Radars, 5G base stations, private networks, fast chargers, and jammers currently use GaN which transmits information wirelessly; it can handle higher powers and is more compact and efficient. Compared to competing technologies on the market, the value proposition is quite compelling,” Hareesh Chandrasekar, CEO and Co-founder of AGNIT Semiconductor told businessline.
AGNIT is one of the first startups incubated by the Gallium Nitride Ecosystem Enabling Centre and Incubator (GEECI), IISc’s incubation arm managed by the Foundation for Science Innovation and Development (FSID) and funded by the Ministry of Electronics and Information Technology (MeITY).
He explained that historically, technology startups have needed a foundry for semiconductor manufacturing. With GEECI, startups can use the infrastructure on the IISc campus funded by MeITY to focus on technology development and product commercialisation.
“This is not an academic sort of a foundry and is only used for production so startups can focus on creating deep tech products rather than having to raise money to set up their captive foundry,” Chandrasekar said.
Agnit has also been awarded by the Karnataka Government for its GaN semiconductor technology. Recently, it signed an MoU as part of the iDEX program with the Ministry of Defence to design and develop next-generation wireless transmitters for defence applications using GaN technology. The GEECI line includes tools for GaN wafer deposition, device fabrication, comprehensive power and RF device characterisation, wafer and device packaging, and licensed device and circuit design software.
“This is probably the first time an Indian semiconductor hi-tech startup has been funded by Indian VCs. This significant move will open up the path for more VCs to invest in deep tech, especially in the semiconductor space. Once there is a leap of faith, it will make a path easier for others to follow,” said fellow co-founder Dr. Madhusudan Atre.
“Right now, in RF, we are ahead of the curve. We have the prototype, and the devices have been characterised and tested; some subsystems have been built with customers to see how it goes. Certain applications may come up for these types of gallium nitride devices. While currently, we are looking at the local market, the field is open for global expansion,” he added.
The company designs and manufactures GaN materials (wafers) and electronic components primarily for radio-frequency applications. AGNIT’s GaN components offer performance-price footprint advantages for the defence and telecommunication industries. AGNIT’s patent-protected technology comes from over 15 years of R&D at IISc and spans the verticals of Gallium Nitride materials, manufacturing processes, and device design.
Pranav Pai, Founding Partner and CIO of 3one4 Capital said, “Agnit Semiconductors is breaking new ground by advancing GaN technology in India, a critical component for the future of global electronics and energy systems. It represents the new wave of Indian deep tech startups - born from rigorous research, focused on critical technologies, and positioned for global impact. What sets Agnit apart is its end-to-end capability - from materials to ASICs. This vertical integration, combined with their patented technologies, gives them a unique advantage in a competitive global market.”