H2LooP Secures $2 Mn To Scale AI Platform For Embedded Systems
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AI startup H2LooP has raised $2 Mn (about ₹18.59 Cr) in its seed funding round led by Speciale Invest and 3one4 Capital to scale its platform and scale enterprise deployments.
A portion of the capital will also go towards expanding into high-complexity sectors such as data centres, UAVs, and robotics, where reliability, real-time performance, and data control are critical.
Founded by ex-YoBulk founder Sairanjan Mishra and ex-Pictogen founder Pulkit Agarwal in 2025, H2LooP builds AI tools to help engineers develop and manage the software that runs inside hardware devices like cars, drones, medical equipment and consumer electronics. The startup’s AI platform analyses existing code to generate documentation to assist engineers in writing or debugging embedded software.
It offers specialised small language models (SLMs) that help engineers debug issues faster, design better systems, and write more secure code, especially in industries like automotive, aerospace, and semiconductors.
The platform can analyse debug and crash logs and also helps teams understand complex legacy code. Besides, H2LooP is also building a data platform for hardware engineering along with coding models designed specifically for software that runs inside physical systems.
Currently, H2LooP is working with semiconductor companies, defence organisations, and telecom companies for real-world deployments.
“H2LooP is developing the infrastructure layer that guarantees software does not impede the successful deployment of superior hardware. By reevaluating the construction of system software, we are facilitating hardware teams to accelerate their processes without sacrificing reliability,” said cofounder Agrawal.
The funding comes at a time when investments in the AI segment are gaining strong traction in India, largely driven by rapid advances in the nascent tech and its growing adoption.
According to Inc42’s Indian Tech Startup Funding Report, total investments in the AI segment surged 73% YoY to $253 Mn in Q1 2026. In comparison, AI startups raked in $530 Mn across 87 deals throughout 2025.
Overall, the Indian AI market is projected to breach $126 Bn by 2030, contributing an estimated $1.7 Tn to the country’s GDP by 2035.
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