AI Semiconductor Firm Agrani Labs Raises $8 Mn in Seed Round Led by Peak XV Partners

AI semiconductor startup Agrani Labs has secured Seed funding as it exits stealth mode, with plans to build indigenous AI compute capabilities for enterprise and datacentre workloads. 

Funding, Founders and Product Direction 

As per news reports, the Bengaluru-based startup raised $8 million, equivalent to ₹73.4 crore, in a Seed round led by Peak XV Partners, with participation from angel investors.  

Agrani Labs was founded in December 2024 by former AMD and Intel executives Dheemanth Nagaraj (CEO), Ashok Jagannathan (chief architect), Srikanth Nimmagadda (CTO) and Rajesh Vivekanandham (chief performance architect).  

The company is developing AI GPUs along with an end-to-end software stack covering AI frameworks, compilers, libraries and system software, positioning itself as a full-stack compute provider rather than a hardware-only chip maker. 

Product Progress, Advisory Support and Ecosystem 

Agrani Labs said it has already built early versions of its hardware and software stack and has made meaningful progress on product definition and architecture.  

Semiconductor industry veteran Vinod Dham, widely known for his role in the development of Intel’s Pentium microprocessor, has joined the startup as a founding advisor. Dham is also associated with government-led initiatives such as the India Semiconductor Mission and NITI Aayog’s Frontier Tech Hub Expert Council.  

Commenting on the company’s vision, CEO Dheemanth Nagaraj said the team is leveraging India’s semiconductor and software talent to build a globally competitive AI compute product. 

Market Environment and Funding Landscape 

As of 2025, India’s total GPU count had crossed 38,000 under the IndiaAI Mission, with demand for compute expected to rise further as global companies look to set up data centres in the country.  

However, reliance on global technology players for AI infrastructure remains a challenge for domestic chip development. Venture capital investment in the sector has also been cautious, with semiconductor startups raising about $50 million in 2025, up 79% from $28 million in the previous year. 

Read More: Dell And NxtGen Partner to Develop Large-Scale AI Computing Facility in India! 

Conclusion 

With Seed capital secured and early product development underway, Agrani Labs is positioning itself to address rising AI compute demand while navigating the capital-intensive semiconductor ecosystem. 

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