Deeptech Funding Alert

Hycosys raises seed round led by MountTech Growth Fund’s Kavachh

• ByStartupStory     |    February 23, 2026

Deep-tech engineering startup Hycosys has raised over $1 million (approximately Rs 9 crore) in a seed funding round led by MountTech Growth Fund – Kavachh.

The Bengaluru-based startup had earlier secured $88.4K in a pre-seed funding round from PointOne Capital in December 2024.

The fresh funds will be deployed to strengthen the engineering team, access advanced testing facilities, develop a micro gas turbine (MGT), and demonstrate a working clean energy alternative to diesel-based power generators by mid-2027, Hycosys said in a press release.

Co-founded in 2024 by Tapish Agarwal and Ugandhar Reddy, Hycosys is a deep-tech engineering startup building fuel-flexible, low-emission micro gas turbine systems engineered from first principles. The startup is supported by multiple government, VC, and CSR-backed programmes, with a focus on developing hydrogen-ready and clean fuel-flexible micro gas turbines for distributed clean power, mobility, and aerospace applications.

As per industry reports, India currently has over 227 GW of installed diesel generator capacity, primarily catering to industrial backup and captive power requirements.

Hycosys plans to diversify and integrate its MGT with microgrids, heavy commercial vehicle range extenders, and advanced propulsion units designed for integration with large fixed-wing drones and aircraft. The startup’s innovation includes a hydrogen-optimised combustor, a 3D-printed heat recovery unit, and an advanced turbine design, which are currently being tested at IIT-BHU. This approach significantly improves efficiency while making the MGT up to 30% lighter than existing systems.

The startup aims to build scalable, indigenous turbine technologies aligned with India’s long-term decarbonisation and emission reduction goals of meeting 50% of total energy requirements from non-fossil sources by 2030.

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