H2LooP, an AI startup founded by ex-YoBulk founder Sairanjan Mishra and ex-Pictogen founder Pulkit Agarwal, has secured $2 million (approximately ₹18.59 crore) in a seed funding round led by Speciale Invest and 3one4 Capital. The funding aims to enhance the startup’s platform and support enterprise deployments, particularly in high-complexity sectors such as data centres, unmanned aerial vehicles (UAVs), and robotics, where reliability and real-time performance are crucial.
Founded in 2025, H2LooP creates AI tools designed to assist engineers in developing and managing software that operates within hardware devices, including automobiles, drones, medical equipment, and consumer electronics. The startup’s AI platform analyzes existing code to generate documentation that aids engineers in writing or debugging embedded software. It also offers specialized small language models (SLMs) that expedite debugging, system design, and secure code writing, particularly in industries such as automotive, aerospace, and semiconductors.
H2LooP’s platform is capable of analyzing debug and crash logs, helping teams navigate complex legacy code. In addition to this, the startup is developing a data platform tailored for hardware engineering, along with coding models specifically designed for software that operates within physical systems. Currently, H2LooP collaborates with semiconductor companies, defense organizations, and telecom firms for real-world deployments.
According to co-founder Agarwal, “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.”
The funding arrives at a pivotal moment as investments in the AI sector are witnessing significant growth in India, propelled by rapid technological advances and increasing adoption rates. According to Inc42’s Indian Tech Startup Funding Report, total investments in the AI segment surged 73% year-on-year to $253 million in the first quarter of 2026. In contrast, AI startups amassed $530 million across 87 deals throughout 2025.
Overall, the Indian AI market is projected to surpass $126 billion by 2030, contributing an estimated $1.7 trillion to the country’s GDP by 2035. As H2LooP positions itself to capitalize on these trends, its innovative solutions could play a significant role in shaping the future of embedded software across various high-tech industries.
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