Netrasemi: Kerala Semiconductor Startup Secures Rs 107 Crore Investment

Kerala-based semiconductor startup Netrasemi has recently announced a significant investment of Rs 107 crore ($12.5 million) through a Series A funding round. This round was spearheaded by Zoho Corporation, alongside contributions from the existing investor Unicorn India Ventures. This marks the company’s second fundraising effort within less than a year, following a pre-Series A round of Rs 10 crore which was successfully completed in December 2024.

As per filings from the Registrar of Companies (RoC), Netrasemi’s board allocated 15,063 Series A Compulsorily Convertible Preference Shares (CCPS) at an issue price of Rs 71,000 each to secure the stated amount. Leading the charge, Zoho Corporation contributed Rs 87 crore ($10.2 million), while Unicorn India Ventures invested Rs 16.5 crore ($1.94 million). Additionally, Maithan Alloys, known for its ferro alloys, joined in with Rs 3.45 crore.

Netrasemi’s Valuation Growth and Innovative Technology

According to estimates from Startup Superb, Netrasemi’s current valuation stands at approximately Rs 630 crore ($74 million), reflecting an impressive 6.6X increase from its previous valuation of Rs 95 crore ($11 million) during the pre-Series A round. Established in 2020, Netrasemi focuses on developing system-on-chips (SoCs) tailored for smart IoT products, specifically designed to manage intricate workloads such as video processing.

Netrasemi’s energy-efficient chips, which incorporate an in-house AI acceleration core (NPU) and silicon IPs, facilitate advanced analytics directly on devices, eliminating the reliance on servers or cloud resources.

Stakeholder Dynamics in Netrasemi’s Funding

Following this funding round, Zoho Corporation has secured a 13.83% equity stake in Netrasemi, while Unicorn India Ventures retains a stake of 13.56%. The co-founders, Jyothis Indirabhai, Deepa Geetha, and Sreejith Varma, collectively continue to hold over 50% ownership. Additionally, the company has established an Employee Stock Ownership Plan (ESOP) pool of 5.19%, valued at Rs 32.6 crore.

In the financial year 2024 (FY24), Netrasemi reported an operating revenue of Rs 1.55 crore, achieving a profit of Rs 5.3 lakh. However, details regarding its financial performance for FY25 are still pending.

Notably, after the completion of the Series A round, Netrasemi’s co-founders diluted nearly 45% of their ownership. This trend is commonly observed among early-stage startups aiming to secure substantial funding while inviting in institutional investors. Comparatively, fintech startup DPDzero and stock trading application Sahi also experienced similar dilution levels, with approximately 45% and 40% respectively, during their Series A rounds.