TLDR: Bengaluru-based deep-tech firm QpiAI has successfully raised $32 million (approximately INR 279 crore) in a Series A funding round. The investment was co-led by Avataar Ventures and the Indian government’s National Quantum Mission (NQM). This significant capital injection will accelerate the development of QpiAI’s utility-scale quantum computer and support its global expansion, reinforcing India’s position in the advanced technology landscape.
Bengaluru, India – QpiAI, a pioneering deep-tech company at the forefront of converging Artificial Intelligence (AI) and Quantum Computing, announced today the successful completion of a $32 million Series A funding round. This substantial investment, equivalent to approximately INR 279 crore, was jointly led by Avataar Ventures and the National Quantum Mission (NQM), a flagship initiative of the Department of Science and Technology (DST) aimed at fostering quantum technology development in India.
This latest funding brings QpiAI’s total capital raised to date to $39 million, with the company now valued at $162 million post-money. The fresh capital is earmarked to accelerate the delivery of QpiAI’s utility-scale quantum computer and facilitate its strategic global expansion.
QpiAI, founded in 2019, has distinguished itself by developing a full-stack quantum computer, QpiAI-Indus, featuring proprietary hardware and software. The company currently boasts a 25-qubit system and has an ambitious roadmap to scale up to 1,000 qubits by 2030. This technology is designed to tackle some of the world’s most complex industrial and scientific challenges, leveraging the inherent strengths of quantum computing in handling high-dimensional data and quantum chemistry.
The National Quantum Mission, a ₹6,000 crore (US$750 million) initiative launched in 2023, plays a crucial role in this funding. QpiAI is one of eight startups selected to receive initial grants under the NQM, underscoring the government’s commitment to building a robust domestic ecosystem for quantum computing research and application development.
Dr. Nagendra Nagaraja, CEO and founder of QpiAI, expressed his gratitude to the investors, stating, “We wish to thank our investors who are enabling us to take QpiAI to next level.” He added, “We have been able to achieve great traction in the commercialisation of NISQ (Noisy Intermediate State Quantum) computers in education, research, and algorithmic prototyping. Markets are ripe for utility-scale quantum computers with logical qubits, and we are leading efforts towards building these powerful systems.” Dr. Nagaraja also highlighted that QpiAI has created “India’s most powerful quantum computer with 25 qubits and a roadmap to scale up to 1,000 qubits by 2030.”
Mohan Kumar, Managing Partner at Avataar Ventures, emphasized the transformative potential of quantum technology. “We believe Quantum has the potential to advance mankind beyond imagination and India has a unique opportunity to lead this frontier tech,” Kumar stated. He further praised QpiAI, noting, “QpiAI has demonstrated a strong technical and commercial leadership with its functional Quantum Computing technology and real-world applications at large automotive and life sciences customers. They are on path to lead the Quantum-wave for the emerging markets with its advanced full-stack technology.”
QpiAI’s solutions are already being applied across diverse sectors, including materials science, drug discovery, automotive, life sciences, manufacturing, pharmaceuticals, finance, and agriculture. The company reportedly maintains EBITDA profitability for three consecutive years, with impressive 60% gross margins and 20-30% net margins.
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With a team of approximately 100 employees, including 25 PhDs from top-tier quantum research universities, QpiAI operates offices in India, Finland, and the U.S. The company plans to double its workforce to 200-250 employees and aims to establish local quantum hardware manufacturing by 2026, alongside expanding its presence into Singapore and the Middle East.
