India quantum startups win record grants; move closer to real-world applications-OxBig News Network

This makes it the largest government-led startup investment initiative, according to Ajai Chowdhry, chairman of the Mission Governing Board of the National Quantum Mission, and EPIC Foundation.

“No other central government scheme has disbursed such large individual funding amounts to early-stage ventures,” he told Mint in an interview. Government initiatives like Startup India or MeitY’s TIDE 2.0 have supported thousands of startups, but funding was typically capped at ₹1–2 crore.

NQM was launched in 2023 with an outlay of ₹6,003 crore. The first phase of the program saw over 100 applicants, of which 32 startups were shortlisted. While eight have secured funding, a second cohort is expected to be announced later this month, with the department of science and technology (DST) indicating it may fund up to 16 more startups by the end of the year, according to Chowdhry.

What are the startups developing?

The selected eight startups are working on a wide range of applications. While QNu Labs from Bengaluru is focused on developing quantum-safe networks to enable secure communications, QPiAI India has already built a 25-qubit superconducting quantum computer. Unlike classical bits (used in our everyday computers), quantum bits, or qubits, can be both 0 and 1 at the same time due to superposition, allowing quantum computers to process many possibilities simultaneously.

At IIT Mumbai, Dimira Technologies is working on cryogenic cables essential for quantum systems, while Prenishq, incubated at IIT Delhi, is creating precision diode-laser systems for use in quantum sensing and computing. Pune-based QuPrayog is developing optical atomic clocks to support advancements in quantum meteorology. 

In Delhi, Quanastra is engaged in building advanced cryogenic systems and superconducting detectors. Ahmedabad’s Pristine Diamonds is designing diamond-based materials tailored for quantum sensing, while Quan2D Technologies in Bengaluru is working on next-generation single-photon detectors critical to quantum communication systems.

For these companies, the NQM grants are catalytic. “This funding gives them runway for the next 2–3 years without dilution,” said Chowdhry. India is the sixth country in the world to launch a national quantum mission after the US, China, Canada, Germany, and the UK. 

By backing startups with significant capital at an early stage, the NQM is attempting to do what private venture funding in India has largely avoided: bet on deep-science startups with long gestation periods and uncertain returns. “This program marks a shift in how the Indian state views risk and innovation,” said Chowdhry, adding, “It’s a moonshot, but that’s exactly what this space needs.”

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Protecting local IP

The startups must meet strict performance milestones, including demonstrable prototypes and intellectual property (IP) filings. To retain the IP in India, the government mandates startups to be Indian-owned, headquartered in India, and at least 51% Indian-owned to qualify for funding.

Further, the government is introducing a rolling system—applications can be submitted on the 15th of every month, and selected cohorts will be finalized within three months. However, to manage the volume and ensure progress, startups that have already applied must wait six months before reapplying—unless they can demonstrate significant new development or research.

“Each startup proposal is carefully reviewed by a technical committee to assess its viability and the funding required to reach Technology Readiness Level 9 (TRL-9). Also, it’s not enough to just build the technology—there must be a sound business model behind it. To ensure this, we’ve brought experienced investors on board to review business plans alongside technical feasibility,” Chowdhry explained.

Real-world impact

Through the Noida-based Mission Coordination Centre (MCC), NQM is focusing on guiding startups too, since they require early-stage support. Each startup is paired with a relevant Thematic Hub (T-hub) and assigned both a technology mentor and a business mentor to safeguard the success of the investment.

On 30 September, 2024, India announced the setting up of four T-Hubs at premier institutions—Indian Institute of Science (IISc) Bengaluru, IIT Madras, IIT Bombay, and IIT Delhi, in partnership with the Centre for Development of Telematics in New Delhi. 

“All four T-hubs are operational. Hiring is underway, and several positions have already been filled. Our strategy is to focus on prototype development in the first two to three years, product development by year six, and finally, market deployment beyond that,” Chowdhry said, adding, “Even if only three out of eight startups succeed, that’s acceptable—that’s the nature of innovation.”

Some Indian startups are already translating these innovations into real-world impact. In the field of quantum security, for instance, several startups already have functional products, and research institutions such as IIT Madras and the Raman Research Institute have also developed their own technologies. India is among the first to have developed homegrown products in quantum key distribution (QKD) and post-quantum cryptography (PQC), Chowdhry pointed out.

QNu Labs, which recently raised ₹60 crore in Series A funding, led by NQM, has already demonstrated fibre-based quantum communication over 250 kilometres, and is now conducting tests to reach 500 kilometres. This test, supported by funding, is expected to conclude within the next three to six months. 

Following that, NQM plans to collaborate with the department of telecommunications (DoT) and the Indian Army to establish a 2,000-kilometre test network, which will likely take between one and two years. “Our initial target was to achieve 2,500 kilometres in eight years, but we may actually reach that milestone much earlier,” Chowdhry said.

The Quantum Materials T-hub, located at IIT Delhi, is focusing on designing and synthesising quantum materials and devices based on quantum technologies. In the sensing domain, India is developing magnetometers, gravimeters, and atomic clocks.

“A key difference between this mission and past efforts is that we are not pursuing research for the sake of research alone; instead, every lab is required to develop products that reach TRL-8 and TRL-9. Progress is reviewed every six months by the MCC, and we have clearly defined steps to guide the process,” Chowdhry explained.

Quantum sensing is also emerging as a major focus area for military and strategic applications, he added. For instance, in naval warfare—where GPS signals can be unreliable or spoofed—non-GPS-based sensing technologies are becoming essential.

Discussions with institutions like the Naval Warfare College have underscored the value of underwater sensing capabilities. Instruments like gravimeters (they measure local gravitational strength, and quantum gravimeters use ultra-cold atoms and quantum interference to achieve highly precise readings) developed at the Indian Institute of Technology (IIT) Bombay are already showing promise. The aim is to miniaturize these into handheld devices, opening up significant use cases in underground and underwater detection.

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Taking care of skilling too

As part of NQM’s skilling initiative, both undergraduate and postgraduate programs are being launched to build a strong talent pipeline. The undergraduate program was announced in December, and the first academic session will begin in August 2025 across 75 universities.

The preparatory work includes developing course materials focused on quantum theory and producing a comprehensive set of video lectures. To support the infrastructure, NQM will fund essential laboratory equipment for each participating university. A standard equipment list has been prepared, and universities will receive funds to make the necessary purchases, ensuring consistency and readiness across institutions.

On the postgraduate side, the curriculum for the Master’s program is currently being finalized. One such program has already been launched at the Indian Institute of Science Education and Research (IISER) Pune, where students are currently enrolled, according to Chowdhry.

Negotiating hurdles

Quantum computers use various types of qubits like superconducting qubits (such as the one used by TIFR), trapped ion qubits, quantum dots, photons, and neutral atoms. With NQM, India plans to develop quantum computers with 50-100 qubits in about five years, and accelerate it to 1000 qubits and beyond in eight years.

That said, QPiAI is “actively marketing the hardware and software capabilities of its 25-qubit superconducting quantum computer globally”, Chowdhry said. He argued that contrary to the belief that 25 qubits are insufficient, the company has “made significant strides in application development”. 

“Their hybrid model—which integrates quantum computing into a traditional data center—is being used for advanced modeling and simulation, artificial intelligence (AI) solutions in education, and even drug discovery,” he added.

Yet, to make quantum computers stable and functional for everyday use, we need quantum error correction (QEC). One also has to build quantum algorithms for practical applications.

Recognizing the importance of robust algorithm development—particularly for fault tolerance and error correction—NQM, according to Chowdhry, is launching a dedicated initiative focused on quantum algorithms. This will invite proposals from developers who can advance this critical area, enabling more reliable and scalable quantum systems going forward.

Chowdhry acknowledged that there have been some delays in acquiring equipment due to existing government procurement rules, which tend to slow down the process. However, the Department of Science and Technology (DST) has approached the government to request relaxation of these rules, specifically for the mission, he added.

“The aim is to reduce procurement time from the current 12 months to just two to four months. This proposed change is critical. Across the country, researchers often struggle with delays in equipment acquisition due to bureaucratic hurdles. Since the NQM is a strategic initiative and not a standard project, we are advocating for special provisions to streamline equipment purchases and accelerate progress,” Chowdhry concluded.

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