Raana Semiconductors is in advanced talks to raise ₹100 crore (around $10.4 million) in its Series A funding round, founder and CEO Rajasekar Elavarasan told Inc42. An Indian venture capital firm is expected to lead the round with a cheque of ₹50-60 crore. The startup aims to close the round by October and plans to use the proceeds to scale its Czochralski crystal-growth equipment and refine its silicon-growth process.
The Series A round will likely include participation from seven to eight investors, with some existing backers considering doubling their investments, Elavarasan said. Raana intends to allocate 30%-40% of the funds to improving the silicon-growth process and the remainder to developing a domestic supplier ecosystem and hiring talent. The startup raised $3 million in a seed round about seven months ago, led by Equirus Innovatex Fund and Artha Venture Fund.
Founded in 2015 and based in Hosur, Raana Semiconductors designs and manufactures CZ crystal-growth systems used to produce single crystals for semiconductor, solar, defense, photonics, and atomic energy applications. The company initially explored multiple crystal-growth technologies but focused on CZ technology in 2019. Its systems have been supplied to various sectors, supporting India's push for domestic semiconductor manufacturing capabilities.
Raana's plan to scale its CZ crystal-growth equipment from 6 inches to 12 inches and develop a domestic vendor base aligns with India's broader efforts to build a self-reliant semiconductor supply chain. The startup expects to finalize the Series A funding round by October, which will support these expansion and technology refinement goals.