The Indian government’s $750 million National Quantum Mission has co-led QpiAI’s all-equity Series A round, alongside Avataar Ventures, at a post-money valuation of $162 million.

The funding reflects India’s broader push to establish itself as a quantum computing power. Launched in 2023, the National Quantum Mission is an Indian government initiative that views quantum computing as both an economic opportunity and a national security imperative. The program aims to help develop intermediate-scale quantum computers with 50-1,000 physical qubits within eight years across platforms including superconducting and photonics. It also targets the development of satellite-based quantum communications, inter-city quantum distribution, multi-node quantum networks, magnetometers, and the design and synthesis of quantum materials, including superconductors, semiconductor structures, and topological materials for quantum device fabrication.

QpiAI is one of eight startups selected by the National Quantum Mission, each receiving an initial grant of up to $3.5 million. Among these companies, the Bengaluru-headquartered startup, which has subsidiaries in the U.S. and Finland, says it has built India’s first full-stack quantum computer, called QpiAI-Indus, which it launched in April with 25 superconducting qubits.

Founded in 2019, QpiAI says it integrates quantum computing and AI to provide optimization capabilities in areas such as manufacturing, industrial, transportation, finance, pharma, and materials. The startup says it has developed specialized software, along with its proprietary hardware, to support real-world quantum applications in fields such as materials science and drug discovery.

“Quantum can really make sure AI is robust,” said QpiAI founder and CEO Nagendra Nagaraja in an interview.

The startup views simulation, drug synthesis, and material discovery as some of the key use cases where the combination of AI and quantum could provide a competitive edge.

“Because the design space of a quantum chip is very, very big, and to actually get optimal qubits, which is important when we integrate thousands of qubits to get logical qubits for error correction, AI plays a bigger role there,” Nagaraja told TechCrunch.

QpiAI plans to launch its 64-qubit quantum computer in November, with availability to customers expected by the second or third quarter of next year, Nagaraja said.

The company is also working to start manufacturing its quantum hardware locally in 2026. Currently, it assembles 80% of its machines in-house.

QpiAI employs a 100-person team, comprising 25 PhDs from international institutions or from Indian institutes. About 50 of its employees are based in India. The company says it has around 20 customers in India and the U.S., including the Indian government, which uses its infrastructure to test algorithms.

According to the company, QpiAI has been profitable at EBITDA level for the past three years, with approximately 60% gross margins and 20% to 30% net margins, Nagaraja told TechCrunch.

With the fresh funding, QpiAI plans to enter new markets including Singapore and the Middle East. It also aims to allocate funds for its local manufacturing plans and scale its operations to develop a 100-logical qubit system by 2030.

In June of last year, QpiAI raised $6.5 million in a pre-Series A round led by YourNest and SVCL at a post-money valuation of around $30 million.

Nagaraja told TechCrunch that QpiAI has a three- to four-year runway, even without accounting for its profitability. He also said the startup is considering an initial public offering in either 2026 or 2027.

The National Quantum Mission’s support extends beyond QpiAI. The Indian government’s program is also backing startups such as QNu Labs (working on quantum-safe networks), Dimira Technologies (cryogenic cables), PrenishQ (diode-laser systems), and QuPrayog (optical atomic clocks). It has also supported Quanastra (cryogenic systems and superconducting detectors), Pristine Diamonds (diamond-based sensing materials), and Quan2D Technologies (single-photon detectors for quantum communication).

“We plan to continue to support home-grown product companies like QpiAI to help them expand into large enterprises and position India as global leaders in quantum technologies,” said Ajai Chowdhry, chairman of India’s National Quantum Mission, in a prepared statement.