Raana Semiconductors In Talks To Raise ₹100 Cr For Silicon-Growth Equipment

Raana Semiconductors is in advanced talks to raise ₹100 Cr (around $10.4 Mn) in a Series A funding round, founder and CEO Rajasekar Elavarasan told Inc42. The Hosur-based semiconductor startup expects to close the round by October.

An unnamed Indian VC is expected to lead the round with a cheque of ₹50–₹60 Cr, per Inc42. Another seven to eight investors are expected to participate, and some existing backers are considering follow-on investments. Investor identities were not disclosed. The round comes roughly seven months after Raana raised $3 Mn in a seed round led by Equirus Innovatex Fund and Artha Venture Fund.

Raana plans to direct the bulk of the Series A proceeds toward scaling its Czochralski (CZ) crystal-growth equipment from 6 inches to 12 inches, with 30%–40% of the capital earmarked for refining the silicon-growth process recipe, per Inc42. The remaining funds will go toward building a domestic supplier ecosystem and hiring talent.

Founded in 2015 by Elavarasan, Raana designs and manufactures CZ crystal-growth systems that produce single-crystal ingots subsequently sliced into wafers for semiconductor, solar, defence, photonics, and atomic-energy applications. The company initially worked across multiple crystal-growth technologies before narrowing its focus to CZ technology in 2019. Its systems have been supplied to national institutions including BARC, DRDO, IGCAR, RRCAT, C-MET, and NPL, according to Inc42. The startup posted revenue of ₹10.5 Cr in the financial year ended March 2026, per Elavarasan.

The CZ process melts high-purity silicon and draws it into a large single-crystal ingot whose uniform lattice structure — monocrystalline silicon — allows electrons to move predictably, making it suitable for high-performance chips and solar cells. Raana's vice president of technology, Avinash Kumar, told Inc42 that the company already has the core design for its 6-inch system and is now scaling the hot zone, chambers, and thermal profile for the larger 12-inch unit. The team plans two to three months of process-recipe fine-tuning before customer demonstrations.

Near-term, Raana plans to target solar manufacturers that need silicon for wafer and solar-cell production, with semiconductor manufacturers as a longer-term customer segment. The company also plans to establish a pilot silicon-manufacturing plant in Tamil Nadu, per Inc42. Most current revenue comes from national laboratories and defence customers including DRDO laboratories and atomic-energy facilities.