Indian startup Raana Semiconductors in talks for ₹100 Cr silicon growth equipment funding

Indian semiconductor startup Raana Semiconductors is in advanced talks to secure ₹100 Crore (approximately $10.4 million) in its Series A funding round. The funds are intended to scale the company's silicon crystal growth equipment and develop a domestic supplier ecosystem.

Founder and CEO Rajasekar Elavarasan indicated that the funding round is expected to close by October. An Indian venture capital firm is anticipated to lead the round with an investment of around ₹50-₹60 Crore. The round is expected to see participation from seven to eight other investors, with some existing backers also considering increased investment.

The proceeds will primarily be used to scale Raana's Czochralski (CZ) crystal growth equipment from 6-inch to 12-inch systems. Approximately 30-40% of the capital will be allocated to refining the silicon growth process. The remaining funds will support the development of a domestic vendor base for the equipment and talent acquisition.

Founded in 2015, Raana Semiconductors designs and manufactures CZ crystal growth systems used for producing single crystals for the semiconductor, solar, defense, photonics, and atomic energy sectors. The company has supplied its systems to national institutions including BARC and DRDO. Raana previously raised $3 million in a seed funding round.