Bengaluru's QpiAI, quantum computing and artificial intelligence startup, has raised Rs 50 crore debt funding from InnoVen Capital, as the deeptech company continues to develop quantum computing hardware and AI solutions for enterprise applications.
Key Highlights
- Bengaluru's QpiAI raises Rs 50 crore debt funding from InnoVen Capital at an annual coupon rate of 13.85%.
- Quantum computing startup QpiAI targets a 1,000-qubit system by 2030 following its latest debt funding round.
A filing with the Registrar of Companies (RoC) reveals that the board of QpiAI has approved to issue 5,000 non-convertible debentures (NCDs) of Rs 1 lakh each. Each debenture has a 13.85% annual coupon rate and will be outstanding until December 1, 2028.
The company hasn't mentioned any plans to utilise the debt amount of Rs 50 crore.
QpiAI’s Rs 50 Cr Debt Carries 13.85% Coupon, Matures in December 2028
The latest financing provides QpiAI with debt capital as it works on expanding its quantum computing and artificial intelligence capabilities. The NCD issuance will enable the company to raise fund without adding any new ownership in the business as compared to equity funding.
The Rs 50 crore scheme has 5,000 NCDs, each with a face value of Rs 1 lakh. The instruments pay 13.85% annual coupons and are due to come due in December 2028.
The Bengaluru-based start-up has yet to reveal the allocation of funds to develop quantum hardware, R&D, expand and for other operational needs.
QpiAI Targets 1,000-Qubit Quantum Computing System by 2030
QpiAI was established in 2019 by Nagendra Nagaraja, who is dedicated to building quantum devices and software and also AI solutions for enterprise applications.
The company has built a quantum computer with 25 qubits, and has a goal of 64 qubits. It has a long-term roadmap of expanding its quantum computing to 1,000 qubits by 2030.
QpiAI is working on solutions for sectors such as drug discovery, manufacturing, finance and pharmaceuticals and materials science, making quantum computing a potential solution to solve complex computational problems in various industries.
QpiAI Previously Raised $32 Mn in Series A Funding
The debt round comes on the heels of QpiAI's $32 million Series A funding round that closed in July 2025. It was spearheaded by Avataar Ventures and the National Quantum Mission (NQM), and the amount of funding is approximately Rs 279 crore as of the time of writing.
The Series A round valued QpiAI at Rs 2,050 crore or $215 million. While the previous funding gave the company equity capital to support its quantum computing and deeptech aspirations, the new funding is debt capital.
Also Read: Indian Startup Funding Reaches $2.9 Billion in Q3
QpiAI Reports Rs 2 Cr Revenue and Rs 16.67 Cr Loss in FY25
QpiAI has yet to file its financial results for the fiscal year ended March 2026. In FY25, the company remained at a pre-revenue stage from the perspective of its business scale, reporting operating revenue of approximately Rs 2 crore.
Its losses increased to Rs 16.67 crore during the same fiscal year.
The latest debt raise comes as QpiAI continues to invest in a capital-intensive technology area where building proprietary quantum hardware and developing related software require sustained research and development spending.
Why QpiAI’s Rs 50 Cr Debt Raise Matters for India’s Quantum Computing Sector
QpiAI’s latest financing highlights the growing range of capital available to Indian deeptech companies working on emerging technologies such as quantum computing and AI.
The company is pursuing a hardware-led quantum computing roadmap while developing enterprise applications across multiple industries. Its progression from a 25-qubit system towards a planned 64-qubit platform, followed by a longer-term 1,000-qubit target, will be an important part of its technology development journey.
With the Rs 50 crore debt financing from InnoVen Capital, QpiAI has added another source of capital to support its growth plans. However, the specific deployment of the latest funds remains undisclosed.
