A raft of quantum computing startups is securing funding worldwide as the technology moves from the lab to a strategic imperative. Indian startups are also staking their claim.
The venture capital world is placing bigger bets on quantum computing than ever before. In Germany, Q.ANT, a wholly owned subsidiary of the industrial high-tech company TRUMPF, has just closed a €62 million Series A round — Europe's largest funding round for photonic computing. Q.ANT is also leading a consortium that’s secured €50 million in government research grants.
Across the border in the Netherlands, quantum chip testing startup OrangeQS recently raised €12 million in what became the largest seed round to date in the Dutch quantum sector.
Startups in India, seeking a competitive edge in this global race, should be heartened that the government is increasingly proactive in backing them. Bengaluru-based QpiAI is an example that recently raised $32 million in Series A funding, co-led by India's National Quantum Mission alongside private investor Avataar Ventures.
QpiAI aims to develop full-stack quantum computers and real-world quantum applications. Just months earlier, quantum cybersecurity firm QNu Labs raised Rs. 60 crore ($7 million). That round, also led by the quantum mission, marked the Government of India’s first strategic investment in a private quantum computing startup.
Even as AI hogs headlines, quantum computing is emerging as another crucial front in the geopolitical fight for tech supremacy. Comparisons may not be useful in practical terms, but it’s worth noting that China has emerged as a leader.
Beijing's recent unveiling of the Zuchongzhi-3, a 105-qubit quantum processor that is said to compute a million times faster than Google's current systems, is another notable event, similar to the arrival of DeepSeek, that reflects China’s rise in strategic technology. China has also built a 12,000 km quantum communications network and, way back in 2016, launched the world’s first quantum-enabled satellite.
Inflection point
Experts say the world is on the cusp of game-changing breakthroughs in this area. Nvidia CEO Jensen Huang, who was initially sceptical about the practical utility of this tech in the foreseeable future, changed his mind to say recently that “there's an inflection point happening in quantum computing” and that useful applications could arrive much sooner than expected.
While doomsday scenarios are many – including ‘Q-Day,’ when today's digital security becomes obsolete overnight – quantum computing is also widely expected to usher in the next waves of progress in multiple areas. Existential threat or generational opportunity – the only option for India is to be prepared.
From a startup venture's perspective, QNu Labs is a standout example of homegrown quantum innovation, in our view. QNu was founded in 2016 and incubated at IIT Madras.
The company has grown from a theoretical research project to a 140-person operation generating $5 million in annual revenue, with projections to reach $20-25 million by fiscal 2026. More importantly, it has developed commercially ready quantum-safe cybersecurity solutions that are already protecting India's defence infrastructure.
QNu's flagship products — including its Armos quantum key distribution system and Tropos quantum random number generator —represent a crucial defensive capability against future quantum attacks. The company's quantum-secure digital certificates are being deployed across India's armed forces, while its QShield platform provides enterprise-grade quantum-safe encryption that can integrate seamlessly with existing IT infrastructures.
QNu has established operations in the US, Australia, and the Middle East. Its technology pipeline includes quantum-secured drones and satellite communication systems.
The global quantum computing market is expected to grow significantly: projections range from $5.3 billion to $17.15 billion by the early 2030s, representing compound annual growth rates of 28-35 per cent, as real-world commercial applications are developed in areas including drug discovery, financial modelling, and cybersecurity.
To capitalise on this opportunity, India's VC-startup-academia-government ecosystem must accelerate collaboration. The National Quantum Mission, with a budget of Rs. 6,004 crore ($721 million) through 2031, provides crucial infrastructure through four Thematic Hubs across leading institutions, including IISc Bengaluru and IIT Madras.
But sustained leadership requires deeper integration. Investors in India, too, now recognise that quantum startups – and deep tech in general – require patient capital and longer development cycles, and several desi VCs, and their domestic LPs, are stepping up.
Quantum computing is a strong example of an area that demands years of multi-disciplinary experience, including quantum physics, computer science, and engineering. This will require a concerted decadal effort to develop India’s talent pipeline in a manner that must necessarily include our bright youngsters in middle schools and high schools across Bharat, and not just affluent schools in the big cities.
The quantum revolution has begun, and it will power the next generations of advances in every field of human endeavour. This time, India is looking to move quickly, from national missions to startups such as QNu. Can we move fast enough?
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