Morphing Machines has raised about ₹42 Cr ($4.4 Mn) in the second tranche of its Series A round, taking the total Series A funding to ₹80 Cr
The IISc-incubated startup raised this tranche from Hero Enterprise Partner Ventures, Colossa WomenFirst Fund, and Navam Venture Fund I
The fresh capital will be used to accelerate development and testing of its first production chip, convert customer engagements into pilot deployments, strengthen its software toolchain, and expand the engineering team
Semiconductor startup Morphing Machines has raised about ₹42 Cr (about $4.4 Mn) in the second tranche of its Series A funding round to close the fundraise at ₹80 Cr. The Indian Institute of Science (IISc)-incubated startup has raised the second tranche of the Series A round from Hero Enterprise’s venture arm Hero Enterprise Partner Ventures, Colossa Ventures and Navam Capital.
According to the startup’s MCA filings accessed by Inc42, its board approved the issuance of 2.10 Lakh Series A compulsorily convertible preference shares (CCPS) of face value ₹10 each at a premium of ₹1,979 per share to Hero Enterprise Partner Ventures, Colossa WomenFirst Fund, and Navam Venture Fund I.
Prior to this tranche, the startup had raised ₹38.4 Cr (about $4.3 Mn) from investors IAN Alpha Fund, Speciale Invest, IvyCap Ventures, Golden Sparrow Ventures, IIMA Ventures and DeVC in the first tranche back in October.
Morphing Machines told Inc42 that the fresh capital will be deployed to accelerate development and testing of Morphing Machines’ first production chip, convert active customer engagements into pilot deployments, strengthen the software toolchain, and expand the engineering team.
It also plans to deepen its global footprint, with a focus on the US and Europe, where demand for efficient computing infrastructure is accelerating.
The startup also intends to undertake a full-scale commercial appliance by next year. It claims to have made meaningful progress on commercialisation, with active engagements across cloud providers, hyperscalers and enterprise data center operators.
Founded in 2005 by SK Nandy and Ranjani Narayan, with Deepak Shapeti joining as CEO in 2021, Morphing Machine is developing REDEFINE, a runtime reconfigurable core processor designed for use cases in data centers, AI-infrastructure, and high-performance computing.
Its core technology is based on a many-core architecture where the hardware can reconfigure itself in real time depending on the workload. This allows a single chip to handle multiple applications without needing separate hardware. The startup has also built its own compiler that converts software applications into hardware execution patterns for better efficiency.
“Modern applications, from AI inference and real-time analytics to privacy-preserving computing, are placing fundamentally new demands on computing infrastructure. Our processor adapts in real time to diverse workloads, helping customers run complex applications more efficiently. This is particularly valuable for secure cloud computing and data processing at scale, where both performance and cost matter. Our focus is on delivering practical solutions that help enterprises improve performance, reduce costs, and build infrastructure that stays relevant as their needs evolve,” Shapeti said.
The founders spent the first few years of operations on building the concept and running simulations before gaining early traction through proof-of-concept projects with defence laboratories. Aircraft equipment manufacturer Safran later emerged as one of its early enterprise partners, helping validate use cases for its REDEFINE processor in avionics. Around 2021, under Karnataka’s Semiconductor Fabless Accelerator Lab (SFAL), the startup began building the actual hardware for its processor and gradually moved towards commercial deployment.
Morphing Machines competes with the likes of InCore Semiconductors, Calligo Technologies, Netrasemi, and Mindgrove Technologies.
The development comes at a time when startups operating in segments like edge AI processors, semiconductor software, and advanced packaging are becoming increasingly significant as India looks to tap into its fast-growing semiconductor market and build long-term domestic chip capabilities.
The push is being supported by the Centre’s India Semiconductor Mission, which has committed ₹76,000 Cr in incentives for fabs, ATMP units, and chip design under the phase 1 of the scheme.
In the second phase, which is yet to be officiated, the main aim is expected to strengthen India’s core semiconductor ecosystem by prioritising research and development, chip design and innovation.
On a broader level, the Indian semiconductor sector is currently growing at a rapid pace. According to Inc42’s India’s Semiconductor Uprising 2026 report, India’s semiconductor market is projected to grow from $62 Bn in 2026 to nearly $155 Bn by 2030, backed by strong domestic demand, a deep design talent base, and rising global investment.
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