mn Seed Funding

Published on April 07, 2026

[Bengaluru, India] H2LooP, a company building verification-first AI infrastructure for system software, today announced the close of its

million seed funding round led by Speciale Invest and 3one4 Capital, with participation from strategic angel investors across the semiconductor ecosystem. The company is tackling one of the most critical and overlooked challenges in modern engineering: making system software reliable, verifiable, and deeply aligned with hardware in mission-critical environments.

This funding comes at a pivotal moment as the world stands on the cusp of an AI-driven transformation in physical systems, where advancements in compute through GPUs, NPUs, and domain-specific chips are rapidly accelerating innovation, but system software continues to remain the primary bottleneck. As industries such as semiconductors, automotive, defence, and industrial IoT adopt increasingly complex and intelligent systems, engineers are burdened with understanding deeply intertwined hardware-software interactions, debugging low-level failures, and ensuring correctness under strict real-time and safety constraints.

The funding will be used to expand H2LooP's footprint in regulated and IP-sensitive industries, accelerate the development of its domain-specific AI models, and strengthen its verification and reasoning stack. The company is also investing in building enterprise-grade and defence-ready deployments, enabling organizations to adopt AI while maintaining strict control over their data, systems, and intellectual property.

While AI has made significant progress in generating code, it remains insufficient for system engineering where correctness, compliance, and performance are non-negotiable. H2LooP's approach is fundamentally different, centered on a verification-first AI architecture that combines hardware-aware models with deep contextual understanding and formal reasoning capabilities.

"In system engineering, writing code is not the hardest problem—understanding it, reasoning about hardware interactions, and proving correctness is where teams lose months." — Sairanjan Mishra, Co-founder and CEO of H2LooP

H2LooP is also built with AI sovereignty at its core, supporting fully on-premise and air-gapped deployments so that proprietary firmware, chip designs, and system code never leave organizational boundaries.

"Our ambition is to build the default AI layer for system software." — Pulkit Agarwal, Co-founder and CTO of H2LooP