H2LooP, an AI startup focused on embedded systems, has successfully raised $2 million in seed funding. The round was led by Speciale Invest and 3one4 Capital, with the funds aimed at scaling the platform and enhancing enterprise deployments.
A portion of the investment will be directed towards expanding into complex sectors such as data centers, unmanned aerial vehicles (UAVs), and robotics, where reliability and real-time performance are essential.
Founded in 2025 by Sairanjan Mishra and Pulkit Agarwal, H2LooP develops AI tools that assist engineers in managing software for hardware devices, including cars, drones, and medical equipment. The platform analyzes existing code to generate documentation, aiding in software development and debugging.
H2LooP's offerings include specialized small language models that expedite debugging, system design, and secure code writing, particularly in industries like automotive and aerospace. The platform can also analyze debug and crash logs, helping teams navigate complex legacy code.
Currently, H2LooP collaborates with semiconductor firms, defense organizations, and telecom companies for real-world applications. Co-founder Agarwal emphasized that the startup is building an infrastructure layer that ensures software reliability does not hinder the deployment of advanced hardware.
The funding comes at a time of increasing investment in the AI sector in India, driven by rapid technological advancements and growing adoption rates. Recent reports indicate that investments in AI surged by 73% year-over-year, reaching $253 million in Q1 2026.
As the Indian AI market is projected to exceed $126 billion by 2030, contributing significantly to the national GDP, H2LooP is well-positioned to capitalize on this growth.
