Deep-tech engineering startup Hycosys has raised over $1 million (around ₹9 crore) in a seed round led by MountTech Growth Fund Kavachh, as the company looks to advance hydrogen-compatible micro gas turbine systems aimed at replacing diesel generators.
The Bengaluru-based startup had previously secured $88,400 in a pre-seed round from PointOne Capital in December 2024.
The fresh capital will be used to expand Hycosys’ core engineering team, access advanced testing infrastructure, accelerate development of its micro gas turbine (MGT) platform, and demonstrate a working clean-energy alternative to diesel-based power generators by mid-2027, the company said.
Founded in 2024 by Tapish Agarwal and Ugandhar Reddy, Hycosys is building fuel-flexible, low-emission micro gas turbine systems engineered from first principles. The startup is backed by a mix of government programs, venture capital, and CSR-supported initiatives, and is focused on hydrogen-ready and multi-fuel turbines for distributed power generation, mobility, and aerospace use cases.
India currently operates over 227 GW of installed diesel generator capacity, largely serving industrial backup and captive power needs, according to industry data a market Hycosys is targeting with a cleaner alternative.
Beyond stationary power, the company plans to integrate its MGT systems into microgrids, heavy commercial vehicle range extenders, and propulsion systems for large fixed-wing drones and aircraft.
Hycosys’ technology stack includes a hydrogen-optimized combustor, a 3D-printed heat recovery unit, and a proprietary turbine design that is being tested at IIT-BHU. The startup claims its architecture improves efficiency while reducing system weight by up to 30% compared to conventional alternatives.
Long term, Hycosys aims to build scalable, indigenous turbine technologies aligned with India’s decarbonization roadmap, including its target of meeting 50% of total energy requirements from non-fossil sources by 2030.
