Semiconductor startup AGNIT Semiconductors announced Thursday that it has raised $3.5 million in a funding round led by 3one4 Capital and Zephyr Peacock. This deal marks the first investment by investors in the Indian semiconductor sector. The round also saw the participation of Lakshmi Narayanan, former CEO of Cognizant and renowned angel investor. The latest capital infusion brings the company’s total funding to $4.87 million.

AGNIT Semiconductors said it plans to invest fresh capital to accelerate its production and business operations and also expand its offering to new market segments, targeting consumer electronics and electric two-wheelers.

The company plans to sell 100,000 semiconductor chips in the next 12 months.

Speaking on the funding, Hareesh Chandrasekar, CEO and Co-Founder, AGNIT Semiconductor, said the seed round marks a five-year journey during which the company has pioneered Gallium Nitride (GaN) technology. ) to revolutionize specialized applications, augmenting traditional silicon.

“GaN holds immense potential in sectors such as 5G, fast charging, PV inverters and beyond; its full impact has not yet been realized. Achieving this requires unwavering support, and we have been fortunate to have the support of IISc and MeitY. As we expand our market presence, we are also committed to strengthening our management team to guide the company towards greater success,” he said.

AGNIT said it is one of the first startups incubated by the Gallium Nitride Ecosystem Enabling Center and Incubator run by the Foundation for Science Innovation and Development (FSID) located at the Indian Institute of Science ( IISc), funded by the Ministry of Electronics and Information. Technology (MeITY).

The startup had won an award from the Karnataka government for its GaN semiconductor technology. It recently signed a memorandum of understanding under the iDEX program with the Department of Defense to design and develop next-generation wireless transmitters for defense applications using GaN technology.

“Agnit Semiconductors is innovating by advancing gallium nitride technology in India, a critical component for the future of global electronics and energy systems. Agnit represents the new wave of Indian deep tech startups – born from rigorous research, focused on critical technologies and positioned to make a global impact. What sets Agnit apart is its end-to-end capability, from materials to ASICs,” said Pranav Pai, founding partner and CIO of 3one4 Capital.