QpiAI, a company specializing in quantum computing and artificial intelligence, has secured debt financing of ₹50 crore from InnoVen Capital India Fund II. According to ROC documents, the Bengaluru-based startup issued 5,000 unsecured Series B bonds to the fund.
Each bond has a face value of ₹1 lakh, carries an annual coupon rate of 13.85%, and is secured. The QpiAI Board of Directors approved this deal on August 28. Entrackr previously reported on the attraction of this debt financing.
This transaction supplements previous rounds of equity fundraising by the company. Earlier, in June 2024, the company raised $6.5 million in a pre-Series A round with participation from YourNest and SIDBI Venture Capital. Subsequently, in July 2025, it raised $32 million in a Series A round led by Avataar Ventures and National Quantum Mission. Thus, the total disclosed equity funding amounts to $38.5 million before the latest debt round.
Enterprises typically use venture debt to obtain capital without issuing new shares, which helps limit the dilution of founders' and existing investors' stakes. Furthermore, this can provide additional runway between equity rounds and support growth financing while the company works towards achieving commercial goals.
The financing was received while QpiAI is actively developing both quantum software and hardware. However, the board resolution did not specify the exact use of the ₹50 crore funds, meaning this money cannot be tied to any particular project.
Founded in 2019, QpiAI develops vertically integrated quantum systems and AI platforms for sectors such as drug discovery, materials science, manufacturing, logistics, and finance. In 2025, the company launched its QpiAI-Indus system with 25 qubits and subsequently introduced a 64-qubit processor.
Founder and CEO Nagendra Nagaraj previously stated his goal of moving quantum technologies beyond experiments and closer to commercial application, noting that 'markets are ready for industrial-scale quantum computers with logical qubits,' referring to more advanced machines built on error-corrected qubits.
This latest financing comes as India shapes policy and infrastructure around new technologies. The National Quantum Mission, approved in April 2023 with allocations of ₹60,036.5 crore over eight years, aims to develop quantum computing, communication, sensing, materials, and devices, including intermediate machines with 50 to 1000 physical qubits.