AI startup H2LooP raises $2 million funding led by Speciale Invest, 3one4 Capital

AI-native system software startup H2LooP has raised $2 million in seed funding led by Speciale Invest and 3one4 Capital, the company said on March 7, as it looks to accelerate development tools for hardware-focused industries.

The Bengaluru-based startup said the funds will be used to strengthen its core platform, scale enterprise deployments and expand into sectors such as data centres, unmanned aerial vehicles (UAVs) and robotics. 

Founded by Sairanjan Mishra and Pulkit Agrawal, H2LooP is building AI-native tools aimed at speeding up system software development for hardware systems, an area the company said remains a bottleneck despite rapid advances in chips and intelligent systems. 

“We’re seeing strong demand from enterprises looking to modernise system engineering workflows. H2LooP’s platform delivers immediate value by reducing development cycles and improving code quality, making it a compelling solution for teams working on complex systems,” said Sairanjan Mishra, CEO and co-founder of H2LooP. 

The startup is developing a data platform for hardware engineering alongside domain-specific coding models tailored for software embedded in physical systems, with integrated verification and validation layers to ensure reliability. 

“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,” said co-founder Pulkit Agrawal. 

Investors said the company is addressing a critical gap as AI increasingly moves into physical systems.

“Hardware innovation is advancing rapidly but the software powering it needs to keep pace in the age of AI. H2loop is addressing a deeply technical and under-served problem by building AI-native infrastructure for systems software—an area that will be foundational to the next wave of hardware breakthroughs,” said Arjun Rao, founding partner at Speciale Invest. 

“In mission-critical systems, the bottleneck is system software, especially in development, verification, and validation under real-world constraints. H2LooP is closing this gap by embedding AI into the system software layer, enabling production-grade reliability at scale and enabling faster iteration,” added Dhanush Ram, investment principal at Speciale Invest. 

Sonal Saldanha, principal at 3one4 Capital, said, “As hardware systems become heavily software-defined, the need for faster, more reliable system software development is only intensified.” 

H2LooP said it is already working with semiconductor companies, defence organisations and telecom OEMs, and has been selected for the Infineon Global Startup Program.