Govt’s DLI scheme-backed C2i Semicon raises fresh funds

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 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.