Noval Spectral AI raises $2.25M to develop affordable infrared sensors for defence
Bengaluru-based semiconductor startup Noval Spectral AI has secured $2.25 million in funding to develop cost-effective infrared image sensor chips. The round, led by Shastra VC, aims to disrupt the SWIR sensor market by reducing costs by 100x for applications in defence, surveillance, and beyond.
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Funding and investors
Bengaluru-based semiconductor startup Noval Spectral AI has raised ₹21.15 crore ($2.25 million) in a funding round led by Shastra VC. The round also saw participation from Equirus InncateX Fund and other angel investors. The capital will be used to accelerate the development of infrared image sensor chips for surveillance, defence, and other applications.
Technology and market gap
Noval Spectral AI is developing short-wave infrared (SWIR) sensors designed to operate in low-light conditions, enabling applications such as facial recognition and drone-based surveillance. Currently, SWIR sensors cost between $5,000 and $10,000 per unit and are predominantly imported into India. The startup aims to reduce this cost to $20-30 per sensor, a 100x reduction, by leveraging indium arsenide-based colloidal quantum dots. This material can be deposited in liquid form onto silicon chips, simplifying manufacturing compared to conventional gallium arsenide (InGaAs) sensors.
Roadmap and domestic manufacturing focus
The startup, founded by IIT Kanpur alumni Anish Priyadarshi and Sanjeev Kumar, plans to use the fresh funding to build a technical team and establish a manufacturing process in India. Unlike most semiconductor startups in the country, which outsource manufacturing, Noval Spectral AI is prioritizing domestic production. It has received in-principle approval from IISc Bengaluru and aims to deliver a field-ready prototype within 18 months. The Defence Research and Development Organisation (DRDO) has also highlighted the development of SWIR chips in India, reflecting the strategic importance of this technology for defence applications.
What this means
Lazyfounder analysis — our interpretation, not reported fact.
Noval Spectral AI’s funding and focus on domestic manufacturing signal a shift in India’s semiconductor landscape, where dependence on imported SWIR sensors has been a bottleneck for defence and surveillance industries. By targeting a 100x cost reduction, the startup could unlock applications in consumer electronics, automotive, and robotics—sectors where high sensor costs have historically limited adoption. For founders and operators, this validates the potential of niche semiconductor technologies in India, particularly those addressing critical gaps in defence and industrial infrastructure. It also underscores the growing investor interest in deep-tech startups with scalable manufacturing ambitions.
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Sources
- Mint (Technology) · 2026-10-27
This startup from IIT Kanpur boys wants to make infrared chips 100 times cheaper to help drones see through smoke, haze
This story is an original summary drafted with AI by Lazyfounder from the reporting listed above and checked by automated validation. Facts are attributed to their original publishers; sections marked as analysis are Lazyfounder's. Where a source is in another language, facts were machine-translated and quotations are reported, not reproduced. Read the original coverage via the links, and see our AI policy and corrections policy.
About the author
Editor, Lazyfounder
Tarun Mottlia edits LazyFounders, covering Indian startups, funding rounds, AI and product launches. Every story on the site is AI-assisted and checked against its cited sources before publication.
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