Raana Semiconductors is in advanced talks to raise ₹100 Cr in a Series A round to develop its 12-inch crystal-growth system
Without disclosing the investors’ identities, Elavarasan said an Indian VC is expected to lead the round with a cheque of around ₹50-₹60 Cr
Founded in 2015 by Elavarasan, Hosur-based Raana designs and manufactures CZ crystal-growth systems used to produce single crystals for semiconductor, solar, defence, photonics, and atomic-energy applications
Semiconductor startup Raana Semiconductors is in advanced talks to raise ₹100 Cr (around $10.4 Mn) in its Series A funding round, founder and CEO Rajasekar Elavarasan told Inc42.
Without disclosing the investors’ identities, Elavarasan said an Indian VC is expected to lead the round with a cheque of around ₹50-₹60 Cr.
Another seven to eight investors are likely to participate in the round, while some of the startup’s existing backers are also considering doubling down on their investments, he added.
The startup expects to close the Series A round by October.
Raana plans to use the Series A proceeds primarily to scale its Czochralski (CZ) crystal-growth equipment from 6 inches to 12 inches, fine-tune the silicon-growth process, and develop a domestic supplier ecosystem.
The startup plans to use around 30%-40% of the capital to refine the silicon-growth process. A portion of the remaining funds will go towards developing a domestic vendor base for the equipment and hiring talent.
The proposed fundraise comes about seven months after Raana raised $3 Mn in a seed round led by Equirus Innovatex Fund and Artha Venture Fund.
Founded in 2015 by Elavarasan, Hosur-based Raana designs and manufactures CZ crystal-growth systems used to produce single crystals for semiconductor, solar, defence, photonics, and atomic-energy applications.
The startup initially worked on multiple crystal-growth technologies before sharpening its focus on CZ technology in 2019. Its systems have been supplied to national institutions, including BARC, DRDO, IGCAR, RRCAT, C-MET, and NPL.
What Is Raana’s CZ Technology?
The Series A round will primarily fund the scaling of Raana’s CZ technology, which is used to grow silicon crystals for solar and semiconductor applications.
Under the CZ process, high-purity silicon is melted and converted into a large single-crystal ingot. These ingots are subsequently sliced into thin wafers used to manufacture solar cells and semiconductor chips.
The silicon produced through this process is known as monocrystalline silicon, meaning the material has a single, continuous crystal lattice. Its uniform structure allows electrons to move predictably, making it suitable for high-performance electronic applications.
Raana is developing equipment based on this process and now plans to upgrade its existing 6-inch crystal-growth system to a 12-inch system for producing semiconductor-grade silicon and serving solar applications.
The startup’s vice president of technology, Avinash Kumar, said Raana already has the core design for its 6-inch equipment and is now scaling the hot zone, chambers, and thermal profile for the larger system.
“What we are going to do in the pilot line is implement all the designs, including the materials for the hot zone, chamber, and the mechanical and electrical components,” Kumar said.
The startup will simultaneously conduct hot-zone simulations and implement the required thermal profiles. It will then spend two to three months fine-tuning the process recipe for the 12-inch system before demonstrating the equipment to prospective customers, he added.
What’s Next For Raana?
Raana currently earns most of its revenue from national laboratories and defence-related customers, including DRDO laboratories, atomic-energy laboratories, and defence PSUs. These customers buy and test the startup’s crystal-growth technology and related equipment.
The startup clocked revenue of ₹10.5 Cr in the financial year ended March 2026, according to Elavarasan.
In the near term, Raana plans to sell its CZ crystal-growth equipment to solar manufacturers that require silicon for wafer and solar-cell production. It eventually plans to target semiconductor manufacturers as a key customer segment.
The startup is also planning to establish a pilot silicon-manufacturing plant in Tamil Nadu.