Key highlights:

• DLI Scheme–backed C2i Semiconductors has raised $15 million in a Series A round led by Peak XV Partners.
• The Bengaluru startup is building intelligent power-management chips for AI data centers and cloud infrastructure.
• The announcement came during the India AI Impact Summit, highlighting investor confidence in India’s design-led semiconductor push.
• C2i estimates its platform can cut end-to-end power losses by about 10 percent in large data centers.

C2i Semiconductors has raised $15 million in a Series A funding round led by Peak XV Partners. The round is being described as the largest funding round to date for an Indian semiconductor design startup.

The announcement was made during the India AI Impact Summit in New Delhi. It comes at a time when global attention is firmly on AI infrastructure, data-center efficiency, and the rising cost of power.

This latest round follows a $4 million investment led by Yali Capital in 2024. With the new funding, C2i’s cumulative capital raised now stands at roughly ₹170 crore, in addition to financial and infrastructure support received under the Government of India’s Design Linked Incentive programme.

How much money has C2i Semiconductors raised so far?

C2i Semiconductors has raised a total of about $19 million across two rounds. The $4 million seed round in 2024 was led by Yali Capital. The new $15 million Series A, led by Peak XV Partners, significantly scales up its funding base.

For India’s semiconductor design ecosystem, the size of this round matters. Chip startups typically require long development cycles, high R&D spend, and multiple tape-outs before revenue visibility improves. That combination has historically kept large venture cheques away from early-stage Indian semiconductor firms.

What does C2i Semiconductors actually do?

C2i Semiconductors is designing intelligent power-management semiconductor solutions for next-generation AI data centers and cloud infrastructure. Its core focus is power delivery, an area that is becoming a limiting factor as AI workloads scale.

Modern AI data centers consume massive and continuous power. Older power architectures were not designed for dense GPU clusters running around the clock. As a result, data centers face energy loss, excess heat, reliability issues, and scaling constraints.

C2i is trying to address this by redesigning power delivery from what it calls a “grid-to-core” approach.

Why power is the bottleneck in AI data centers

AI models are growing larger. Training and inference workloads are becoming more compute-intensive. As a result, power demand inside data centers is surging.

The challenge is not just sourcing electricity. It is about delivering stable, efficient, and reliable power from the grid all the way to the processor chip. Small inefficiencies across multiple stages add up. They increase heat, reduce GPU lifespan, and push up cooling and operational costs.

This is where C2i’s approach stands out.

How C2i Semiconductors’ technology works

Instead of optimizing individual components, C2i is building a smart, configurable power platform that manages power delivery end to end, in real time.

In simple terms, the company is developing what it describes as an intelligent power brain for AI infrastructure. The system dynamically controls how electricity flows inside a server, from the incoming power source to the processor.

According to the company, this approach improves energy efficiency, reduces heat and failures, extends equipment life, simplifies server design, and supports faster and larger data-center deployments.

C2i estimates that by treating power conversion, control, and packaging as one integrated platform, it can cut end-to-end losses by about 10 percent. That translates to roughly 100 kilowatts saved for every megawatt consumed, with downstream benefits for cooling, GPU utilization, and overall data-center economics.

“All that translates directly to total cost of ownership, revenue, and profitability,” Tadeparthy said.

Who founded C2i Semiconductors and where is it based?

C2i Semiconductors was incorporated in Bengaluru on June 5, 2024. The founding team brings decades of experience from global semiconductor leaders such as Texas Instruments, National Semiconductor, and Maxim Integrated.

The startup was approved for support under the DLI Scheme with effect from November 1, 2024. Since then, it has rapidly scaled its engineering team to about 65 engineers.

C2i is also one of the top three users among around 100 companies accessing centralized EDA tools provided through the ChipIN Centre under the DLI Scheme.

Why the DLI Scheme matters for this funding

India’s Design Linked Incentive programme was announced in 2022 to reduce the upfront risk of chip design. It offers financial support, access to advanced EDA tools, IP cores, and ecosystem support.

Semiconductor startups are onboarded through a rigorous evaluation process by expert committees. This structure has helped improve investor confidence, especially in deep-tech ventures with long gestation periods.

In C2i’s case, DLI support lowered the cost and risk of early tape-outs and accelerated team ramp-up. It also signaled technical credibility to investors evaluating the company.

This is why DLI Scheme–backed startups are increasingly drawing attention from both domestic and global venture firms.

What investors are saying about C2i Semiconductors

Peak XV Partners sees power efficiency as a defining factor in the economics of AI infrastructure at scale.

Rajan Anandan, managing director at Peak XV, said C2i’s approach to power management could significantly extend GPU lifespan and unlock billions of dollars in industry savings. “If you can reduce energy costs by, call it, 10 to 30%, that’s like a huge number,” Anandan said. “You’re talking about tens of billions of dollars.”

He also pointed out that after the upfront capital investment in servers and facilities, energy costs become the dominant ongoing expense for data centers.

When will C2i’s chips be tested?

The claims will be tested soon. C2i expects its first two silicon designs to return from fabrication between April and June. After that, the company plans to validate performance with data-center operators and hyperscalers that have already asked to review the data.

“We’ll know in the next six months,” Anandan said, pointing to upcoming silicon and early customer validation.

The startup is also setting up customer-facing operations in the United States and Taiwan as it prepares for early deployments.

How this fits into India’s semiconductor vision

The funding aligns with the government’s broader semiconductor strategy, which emphasizes both design and manufacturing. Union Minister Ashwini Vaishnaw has repeatedly stressed the importance of creating domestic intellectual property and globally competitive product companies.

India already has a strong chip design talent base. The policy focus is on enabling startups through incentives, advanced tools, and ecosystem support so they can scale globally.

Anandan compared the current phase of Indian semiconductors to India’s e-commerce sector in 2008. “It’s just getting started,” he said.

Whether C2i Semiconductors becomes a global player will depend on execution. For now, its $15 million raise during the AI Summit shows how DLI Scheme–backed chip design startups are beginning to attract serious investor interest.