Now Reading: Raana Semiconductors in talks to raise Rs 100 crore Series A
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Raana Semiconductors in talks to raise Rs 100 crore Series A
Raana Semiconductors is in advanced talks to raise Rs 100 crore in a Series A funding round, founder and CEO Rajasekar Elavarasan told Inc42. An Indian venture capital firm is expected to…
Raana Semiconductors is in advanced talks to raise Rs 100 crore in a Series A funding round, founder and CEO Rajasekar Elavarasan told Inc42. An Indian venture capital firm is expected to lead the round with an investment of Rs 50-60 crore, with seven to eight other investors likely to participate. Some existing backers are also considering increasing their stakes. The startup expects to close the round by October.
The Hosur-based company designs and manufactures Czochralski (CZ) crystal-growth systems used to produce single crystals for semiconductor, solar, defence, photonics, and atomic-energy applications. It plans to use the funds primarily to scale its equipment from 6-inch to 12-inch crystal growth, refine the silicon-growth process, and develop a domestic supplier ecosystem. The startup had raised $3 million in a seed round about seven months ago.
Raana currently earns most of its revenue from national laboratories and defence customers including BARC, DRDO, IGCAR, RRCAT, C-MET, and NPL. It clocked revenue of Rs 10.5 crore in the financial year ended March 2026. The company plans to sell its equipment to solar manufacturers in the near term and eventually target semiconductor manufacturers. It is also planning to set up a pilot silicon-manufacturing plant in Tamil Nadu.
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Raana's planned Series A comes as India pushes to build a domestic semiconductor ecosystem, with the government's production-linked incentive scheme and the Rs 76,000 crore semiconductor mission. The company's CZ technology is critical because India currently imports most of its silicon wafers for chipmaking. Scaling from 6-inch to 12-inch crystal growth is a significant technical leap, as 12-inch wafers are the global standard for advanced semiconductor fabrication. The company's existing revenue from defence and atomic-energy labs gives it a stable base, but cracking the commercial solar and chip markets will require convincing global manufacturers that its equipment meets yield and purity benchmarks. Watch for which Indian VC leads the round and whether the startup can demonstrate a working 12-inch system by 2025.
Source: inc42.com
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