Startup Clueso, which creates videos using agents, raised $10 million in Series A round

The deeptech company Quanfluence has raised $10 million in a funding round led by the venture firm Chiratae Ventures, which specializes in early-stage technology investments in startups.

Pi Ventures, an early-stage fund focused on deep tech and artificial intelligence, which previously led Quanfluence's seed round in 2024, as well as Rainmatter from Zerodha, also participated in the round.

Quanfluence was founded in 2021 and was part of the IIT Madras Incubation Cell incubator. It is developing quantum computers that use photons, or particles of light, to process quantum information.

The founders include engineers and scientists with experience in semiconductors and quantum optics. Among them, three previously co-founded Silicon and Beyond, a company dealing with semiconductor intellectual property, which was later acquired by Synopsys.

Quanfluence stated that it plans to use the raised capital to create a fully functional photonic quantum computer. This involves integrating proprietary photonic chips, control electronics, and software into a single system, rather than developing components separately.

The company's roadmap includes the appearance of early processors by 2027 and larger, scalable machines by 2029. The Pune-based firm noted that it has already designed and manufactured numerous photonic integrated and electronic integrated circuits, developed methods to reduce losses when connecting chips to optical fiber, and demonstrated the generation of quantum light states. Furthermore, work on photonic chips for light-matter interactions has advanced.

In parallel with research, Quanfluence has commercialized a photonic isobaric machine—a specialized system used for optimization tasks—and claims that some of its quantum devices are already commercially available.

Co-founder and CEO Sujoy Chakravarty stated that the company's goal 'never was to create the best experiment,' but rather 'to create a useful quantum computer.' Venkatesh Peddi, Managing Director and Partner at Chiratae Ventures, noted: 'Quantum computing is at an inflection point, and we believe photonics is one of the most viable paths to a machine that can scale beyond the laboratory.'

These developments reflect a broader shift in India's quantum sector. India's National Quantum Mission, valued at ₹60,036.5 crore and approved in 2023, covers quantum computing, communication, sensors, and quantum materials, including the creation of four thematic centers and dedicated infrastructure.

Capital is also beginning to follow this infrastructure build-up. QpiAI recently secured debt financing of ₹50 crore after raising $32 million in July 2025 and has since expanded its hardware and deployment efforts, while quantum security company QNu Labs raised ₹200 crore last month.

Abhinav Singh Negi, Lead Climate and Deep Tech Specialist at Rainmatter by Zerodha, commented: 'They skillfully mitigate the risks of a massive long-term hardware challenge through short-term revenue streams while creating a key element of India's sovereign quantum power.' He added that this is 'a bet on the future of Indian deep tech, hardware-oriented and patent-protected.'

Regarding photonic computing, the possibility is associated with significant engineering challenges. Recent research highlights the advantages of scalability and integration but also points to optical losses and the complexity of creating a large number of high-performance components as major obstacles.

Edtech company byteXL has successfully completed another funding round, raising $9 million. The round was led by investor firm Elevar Equity, with participation from existing investors Kalaari Capital, an early-stage venture fund, and the philanthropic foundation The Michael & Susan Dell Foundation.

This recent round of funding came after the company secured $5.9 million in Series A in July 2024. byteXL, based in Hyderabad, was founded by brothers Karun and Sricharan Tadepalli.

The company collaborates with engineering colleges, particularly those located in second and third-tier cities, to integrate industry-oriented technology and artificial intelligence training directly into students' standard curricula. Its B2B business model operates through educational institutions rather than selling courses directly to individual students.

byteXL integrates curricula, practical projects, technology platforms, and trained faculty with existing college programs. The company claims that last year, 7,600 of its graduates found employment in the IT and engineering sectors.

The capital raised is intended for expanding byteXL's institutional network, strengthening its technological and AI capabilities, increasing academic and diversification capacity, and developing new programs aligned with industry needs. It plans to grow the number of institutions from 40 to 120 over the next two years, and student reach from approximately 200,000 to 500,000 across 15 states. Planned product investments include AI-based personalized learning and assessment tools, as well as student analytics.

CEO Karun Tadepalli stated that the next phase of work will focus on 'expanding our institutional presence' and deepening technology and AI capabilities. For byteXL, the essence of the offering is not adding another online course, but integrating job-oriented training into the four-year engineering cycle.

Kalaari partner Sampath P noted that this approach allows byteXL to operate within the existing college ecosystem, avoiding the need to 'reinvent the wheel,' and highlighted the company's growth and ability to achieve profitability.

The fundraising occurs as the edtech market in the country becomes more selective. Data from Tracxn showed that equity financing volume in the sector reached $214 million in the first eight months of 2026, a sharp decline compared to the 2021 peak, despite an increase in the median deal size. Nevertheless, capital continues to flow into differentiated education and AI businesses. For instance, Arivihan raised $10 million from Accel and Prosus in September to expand its AI tutoring platform, while ProLearn received 30 crore rupees in June to create an AI-focused learning platform.

The political environment is also moving towards employment-linked learning and AI. The government's Skill India Digital Hub integrates learning, assessment, certification, and employment services on a single platform, and its SOAR program has expanded from basic AI courses to 50 AI-related qualifications. Notably, SWAYAM Plus is expanding industry-relevant and credit-eligible learning through higher education.

For companies like byteXL, the opportunity increasingly depends on the ability to sustainably translate this focus on AI skills into measurable learning and employment outcomes. Elevate Education, a higher education platform based in Gurugram previously known as Sunstone, which operates in a similar field, received funding of 170 crore rupees in July, demonstrating investor interest in this segment.