Bengaluru-based quantum computing and artificial intelligence startup QpiAI has raised Rs 50 crore in debt funding from InnoVen Capital as it looks to expand its technology, strengthen its operations and scale its business.
The funding comes at a time when QpiAI is working to build stronger capabilities in quantum computing and AI, with a focus on developing technology for businesses across sectors such as pharmaceuticals, finance, manufacturing, drug discovery and materials science.
According to a filing with the Registrar of Companies (RoC), QpiAI’s board has approved the issue of 5,000 non-convertible debentures (NCDs). Each debenture has a face value of Rs 1 lakh, taking the total issue size to Rs 50 crore.
The NCDs carry an annual interest rate, or coupon rate, of 13.85% and will mature on December 1, 2028. The company has not yet shared specific details about how it plans to use the newly raised debt.
Key Numbers
- Rs 50 Cr - Debt funding raised from InnoVen Capital
- 13.85% - Annual coupon rate on the NCDs
- Rs 279 Cr - Approximate amount raised in QpiAI’s Series A round in 2025
The latest debt financing follows QpiAI’s $32 million (around Rs 279 Cr) Series A round in July 2025. The round was led by Avataar Ventures and the National Quantum Mission (NQM). At the time, QpiAI was valued at around Rs 2,050 Cr, or $215 million, according to Entrackr estimates.
QpiAI was founded in 2019 by Nagendra Nagaraja. The company is building quantum computing hardware, software and AI solutions aimed at solving complex business and scientific problems.
Its technology is being developed for areas such as drug discovery, pharmaceuticals, manufacturing, finance and materials science. These industries often deal with complex calculations and optimisation problems where quantum computing could offer new ways to find solutions.
The company has already developed a 25-qubit quantum computer and is working towards a 64-qubit system. In the longer term, QpiAI has set a target of reaching 1,000 qubits by 2030.
This roadmap shows that the company is looking beyond just software. It is working across quantum hardware, software and AI, giving it a wider role in the growing quantum technology ecosystem.
Building Quantum Technology in India
Quantum computing is still an emerging field, and building the technology requires significant investment. Companies operating in this space need to spend heavily on hardware, research, specialised talent, technology infrastructure and product development.
For QpiAI, the latest debt funding provides another source of capital as it continues to build its technology and move towards larger quantum systems.
The company is also working to bring quantum computing closer to real-world enterprise applications. Instead of focusing only on research, QpiAI is targeting industries where quantum technology could eventually help businesses deal with difficult calculations, optimisation and scientific problems.
Financial Performance
QpiAI is still at an early stage of commercial development. The company has not yet filed its financial results for FY26.
For the financial year ended March 2025, QpiAI reported operating revenue of around Rs 2 Cr, while its losses increased to Rs 16.67 Cr.
The numbers highlight the challenges faced by deeptech companies, especially those building complex hardware and technology from the ground up. Such businesses generally need more time and capital before they can reach large-scale commercial revenues.
With the latest Rs 50 Cr debt funding, QpiAI now has additional capital to continue its technology development and business expansion.
What’s Next for QpiAI?
QpiAI’s journey is closely linked to the growth of quantum computing and AI in India. The company is aiming to develop indigenous quantum technology while also finding practical applications for businesses.
Its focus on scaling quantum hardware, improving software capabilities and developing AI-led solutions could help it build a stronger position in the deeptech market.
As the company works towards its 1,000-qubit goal by 2030, the coming years will be important for turning its technology roadmap into commercially useful products and services.
The latest funding from InnoVen Capital gives QpiAI more financial support to continue that journey. For a deeptech company working in a capital intensive sector, access to fresh capital can play an important role in building technology, hiring specialised talent and moving closer to large-scale adoption.
With quantum computing still in its early stages, QpiAI is betting on the long-term potential of the technology while combining it with AI to address real-world business challenges.
