Bengaluru-based deep-tech engineering startup Hycosys has secured over $1 million (approximately ₹9 crore) in a seed funding round led by MountTech Growth Fund – Kavachh. The funding marks a significant step forward in the company’s mission to develop fuel-flexible, low-emission micro gas turbine (MGT) systems as a cleaner alternative to diesel-based power generators.
The startup had previously raised $88,400 in pre-seed funding from PointOne Capital in December 2024. With this fresh capital infusion, Hycosys is accelerating its efforts to build scalable, indigenous clean energy solutions tailored to India’s growing power demands.
Funding to Strengthen Engineering and Product Development
According to the company, the newly raised funds will be deployed to expand its engineering team, access advanced testing facilities, and develop its proprietary micro gas turbine technology. Hycosys aims to demonstrate a fully functional clean energy alternative to traditional diesel generators by mid-2027.
India currently operates over 227 GW of installed diesel generator capacity, largely used for industrial backup and captive power generation. This heavy reliance on diesel creates both economic and environmental challenges, opening opportunities for cleaner and more efficient distributed energy systems.
Hycosys is positioning its MGT technology as a next-generation replacement that reduces emissions while improving performance and reliability.
Building Hydrogen-Ready, Fuel-Flexible Turbine Systems
Founded in 2024 by Tapish Agarwal and Ugandhar Reddy, Hycosys is developing micro gas turbine systems engineered from first principles. The startup focuses on building hydrogen-ready and fuel-flexible turbines capable of operating on clean energy sources.
Its innovation stack includes:
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A hydrogen-optimised combustor
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A 3D-printed heat recovery unit
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An advanced turbine design under testing at IIT-BHU
The company claims its engineering approach improves efficiency while making the system up to 30% lighter than existing alternatives, enhancing adaptability across various applications.
By prioritizing modularity and fuel flexibility, Hycosys aims to enable distributed clean power generation across multiple sectors.
Applications Across Power, Mobility, and Aerospace
Beyond stationary power generation, Hycosys plans to integrate its micro gas turbines into:
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Microgrid systems
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Heavy commercial vehicle range extenders
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Advanced propulsion systems for fixed-wing drones and aircraft
This diversification strategy aligns with India’s push for energy independence and cleaner transportation technologies.
The startup is supported by a combination of government initiatives, venture capital, and CSR-backed programmes. Its broader goal is to build indigenous turbine technologies that contribute to India’s long-term decarbonisation roadmap.
Aligning with India’s Clean Energy Goals
India has committed to meeting 50% of its total energy requirements from non-fossil sources by 2030. As the country scales renewable capacity, distributed and backup power systems must also transition away from high-emission fuels like diesel.
Hycosys’ hydrogen-compatible MGT systems are designed to support this transition by offering cleaner alternatives for industrial, mobility, and aerospace applications.
With seed funding secured and product development underway, Hycosys is positioning itself at the intersection of deep-tech innovation, clean energy transformation, and advanced engineering — sectors that are expected to see substantial growth over the next decade.
As India strengthens its focus on sustainable infrastructure and indigenous technology development, startups like Hycosys could play a crucial role in reshaping the future of distributed power generation.
Ruchi Kumar is the associate editor at Entrepreneur News Network and TVW News India, where she leads editorial strategy, brand storytelling, and startup ecosystem coverage. With a strong focus on innovation, business, and marketing insights, he curates impactful narratives that spotlight India’s evolving entrepreneurial landscape.