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Hycosys Secures USD 1 Million Seed Funding to Develop Hydrogen-Ready Micro Gas Turbines

The Bengaluru-based deeptech startup raises capital in a round led by MountTech Growth Fund – Kavachh to advance hydrogen-compatible clean power solutions. Bengaluru-headquartered startup Hycosys has raised over USD 1 million (approximately INR 9 crore) in a seed funding round spearheaded by MountTech Growth Fund – Kavachh. The investment will support the development of hydrogen-compatible micro gas turbines (MGTs) aimed at delivering cleaner distributed power solutions.

The company plans to utilise the funds to strengthen its engineering team, gain access to advanced testing infrastructure, and build a functional prototype by mid-2027. Hycosys intends to position its turbine systems as a low-emission alternative to conventional diesel generators widely used for industrial backup and captive power applications.

Founded by aerospace engineers Dr. Tapish Agarwal and Ugandhar Reddy, Hycosys is designing a fuel-flexible turbine platform capable of operating on 100 percent hydrogen, natural gas, and blended fuel combinations. The technology is being developed for deployment across distributed energy systems, mobility solutions, and aerospace applications.

The startup is also evaluating opportunities to integrate its turbines into microgrids, heavy commercial vehicle range extenders, and propulsion systems for large fixed-wing drones and aircraft. According to Agarwal, Co-founder and CEO, the core of the technology lies in a hydrogen-optimised combustor and an advanced turbine architecture that enhances efficiency while reducing overall system weight.

Key components, including a 3D-printed heat recovery unit and an advanced turbine design, are currently undergoing testing at IIT-BHU. The company claims its system could be up to 30 percent lighter than traditional micro gas turbines.

Raj Sethia, Managing Partner and Co-Founder of MountTech Growth Fund – Kavachh, noted that indigenous turbine technologies are vital for strengthening India’s energy security and strategic infrastructure.

With India’s installed diesel generator capacity estimated at around 227 GW—primarily used for industrial backup power—the potential to replace even a fraction with cleaner alternatives represents a substantial market opportunity within the distributed energy segment.

Hycosys aims to develop a fully indigenous turbine platform aligned with India’s long-term decarbonisation objectives and its broader push for domestic manufacturing under the Make-in-India initiative.