Indian deep-tech startup QpiAI, which specializes in combining AI and quantum computing for enterprise solutions, has successfully raised $32 million in its latest Series A funding round. This strategic investment was co-led by the Indian Government under the $750 million National Quantum Mission and Avataar Ventures, valuing the company at a post-money valuation of $162 million.
The fresh capital will enable QpiAI to scale its operations globally and develop utility-scale quantum computers for enterprise and industrial use cases. The funding highlights India’s growing commitment to quantum technology innovation, aiming to position the country as a global leader in the next wave of computing.
QpiAI’s mission is to revolutionize business applications through quantum computing and AI integration, empowering industries with faster simulations, optimized workflows, and advanced predictive analytics.
The recent funding underscores India’s strong commitment to becoming a global quantum computing leader. Launched in 2023, the National Quantum Mission is a strategic initiative by the Indian government that views quantum technology as both a critical economic opportunity and a national security priority.
Through this program, India aims to develop intermediate-scale quantum computers with 50 to 1,000 physical qubits within the next eight years. These systems will span multiple platforms, including superconducting technologies and photonics.
In addition, the mission focuses on advancing satellite-based quantum communications, inter-city quantum key distribution, and multi-node quantum networks. It also seeks breakthroughs in magnetometers and quantum material design, including superconductors, semiconductor structures, and topological materials essential for quantum device fabrication.
QpiAI is one of the eight startups selected under India’s National Quantum Mission, each receiving an initial grant of up to $3.5 million. The Bengaluru-headquartered company, which also operates subsidiaries in the U.S. and Finland, claims to have developed India’s first full-stack quantum computer, named QpiAI-Indus. The company launched this breakthrough system in April, featuring 25 superconducting qubits.
Founded in 2019, QpiAI focuses on integrating quantum computing with artificial intelligence to deliver advanced optimization solutions across industries such as manufacturing, industrial operations, transportation, finance, pharmaceuticals, and material science.
Moreover, the startup has created specialized software and proprietary hardware to enable real-world quantum applications, including materials research and drug discovery, signaling its commitment to pushing the boundaries of next-generation computing.
“Quantum can really make sure AI is robust,” said QpiAI founder and CEO Nagendra Nagaraja in an interview.
The startup identifies simulation, drug synthesis, and material discovery as key use cases where the integration of AI and quantum computing can deliver a significant competitive advantage.
“Because the design space of a quantum chip is very, very big, and to actually get optimal qubits, which is important when we integrate thousands of qubits to get logical qubits for error correction, AI plays a bigger role there,” Nagaraja said.
QpiAI plans to introduce its 64-qubit quantum computer in November, with commercial availability expected by the second or third quarter of next year, according to CEO Nagaraja.
Furthermore, the company is preparing to begin local manufacturing of quantum hardware by 2026. Currently, QpiAI assembles nearly 80% of its machines in-house, showcasing its strong control over the production process.
The startup employs a 100-member team, including 25 PhDs from leading global and Indian institutions. Around 50 employees are based in India, reinforcing its domestic presence.
QpiAI also reports having approximately 20 customers across India and the U.S., including the Indian government, which leverages its infrastructure for algorithm testing and quantum research.
According to the company, QpiAI has maintained profitability at the EBITDA level for the past three years, achieving approximately 60% gross margins and 20–30% net margins, CEO Nagaraja confirmed.
With the latest $32 million funding round, QpiAI plans to enter new markets such as Singapore and the Middle East. The company also intends to invest in local manufacturing and accelerate development of a 100-logical-qubit system by 2030.
Previously, in June 2023, QpiAI secured $6.5 million in a pre-Series A round led by YourNest and SVCL, which valued the company at around $30 million post-money.
Nagaraja stated that QpiAI has a financial runway of three to four years, even without factoring in its current profitability. He also revealed that the company is considering an initial public offering (IPO) between 2026 and 2027, marking a significant milestone for the quantum computing startup.
The National Quantum Mission’s support extends well beyond QpiAI, as the Indian government actively backs several deep-tech startups that are driving innovation in quantum technologies. Among these are QNu Labs, which focuses on developing quantum-safe networks, and Dimira Technologies, which specializes in cryogenic cables. PrenishQ is working on advanced diode-laser systems, while QuPrayog is developing optical atomic clocks to enhance precision in quantum research.
Quanastra is building cryogenic systems and superconducting detectors, while Pristine Diamonds is creating diamond-based sensing materials. Completing the list, Quan2D Technologies is designing single-photon detectors for quantum communication. This broad-based support underscores India’s ambition to become a global leader in quantum technologies, spanning hardware, communication, and sensing systems.
“We plan to continue to support homegrown product companies like QpiAI to help them expand into large enterprises and position India as a global leader in quantum technologies,” said Ajai Chowdhry, chairman of India’s National Quantum Mission, in a prepared statement.
