Raana Semiconductors, a home-grown technology company working on materials used in solar panels and semiconductor chips, has raised $3 million in a seed funding round which was led by Equirus Innovatex Fund and Artha Venture Fund.
The round also saw the participation from IvyCap Ventures, PointOne Capital, CIIE Initiatives and angel investor Garimella Laxminarayana, the company said.
The funding will be used to support research and product development related to the manufacture of silicon ingots, which are cylindrical blocks of purified silicon that form the starting material for solar cells and semiconductor wafers.
At present, much of India’s requirement for silicon ingots and wafers is met through imports.
Raana Semiconductors said it plans to focus initially on equipment used to produce silicon ingots for solar power applications, with ingots measuring between 10 and 12 inches in diameter.
The company said it also has longer-term plans to support the production of higher-grade silicon wafers used in semiconductor chips.
Silicon ingots are a key input in the production of solar panels and electronic chips. The process of producing them involves growing large, single crystals of silicon under controlled conditions.
While India has made progress in assembling solar modules and designing semiconductor chips, upstream manufacturing of inputs such as ingots and wafers remains limited domestically.
Greater domestic capacity in these areas could reduce supply chain risks and support India’s renewable energy and electronics manufacturing goals.
The government has in recent years announced incentives to encourage local manufacturing across the semiconductor and clean energy value chains.
These efforts have gained urgency amid global supply disruptions and trade restrictions that have highlighted dependence on overseas suppliers for critical materials.
Raana Semiconductors said it has been working in this area for more than a decade and has undertaken projects for government and research institutions, including in defence-related applications.
The company said it has received confirmed orders from public sector and research organisations for the current financial year.
The company plans to commercialise its silicon ingot manufacturing systems for the solar industry within the next 18 months. Over time, it aims to extend its work to support semiconductor-grade wafer production for specialised applications.
