H2LooP Secures $2M Seed Funding for AI Embedded Systems
Cofounders discussing an AI platform for embedded systems.
Key Highlights
H2LooP raises $2M in seed funding led by Speciale Invest and 3one4 Capital to advance its AI platform for embedded systems. Targeting data centers, UAVs, and robotics.
AI startup H2LooP has secured $2 million (approximately ₹18.59 Cr) in a seed funding round led by Speciale Invest and 3one4 Capital. The funding will be used to scale its platform and expand enterprise deployments.
A portion of the capital will also support expansion into high-complexity sectors such as data centers, UAVs, and robotics, where reliability, real-time performance, and data control are critical.
Founded in 2025 by Sairanjan Mishra, formerly of YoBulk, and Pulkit Agarwal, formerly of Pictogen, H2LooP develops AI tools that assist engineers in managing software within hardware devices like cars, drones, medical equipment, and consumer electronics. The startup’s AI platform analyzes existing code to generate documentation, aiding engineers in writing or debugging embedded software.
The company offers specialized small language models (SLMs) that help engineers debug issues more quickly, design improved systems, and write more secure code, particularly in industries like automotive, aerospace, and semiconductors.
The platform can analyze debug and crash logs and helps teams understand complex legacy code. Additionally, H2LooP is developing a data platform for hardware engineering along with coding models designed specifically for software that runs inside physical systems.
H2LooP is currently collaborating with semiconductor, defense, and telecom companies for real-world deployments.
According to cofounder Agrawal, H2LooP is developing the infrastructure layer that ensures software does not impede the successful deployment of superior hardware. He added that by reevaluating the construction of system software, the company is helping hardware teams accelerate their processes without sacrificing reliability.
This funding arrives as investments in the AI segment gain traction in India, spurred by rapid technological advancements and increasing adoption. According to Inc42’s Indian Tech Startup Funding Report, investments in the AI segment increased by 73% year-over-year to $253 million in Q1 2026. In 2025, AI startups raised $530 million across 87 deals.
The Indian AI market is projected to exceed $126 billion by 2030, potentially contributing $1.7 trillion to the country’s GDP by 2035.