Nova Spectral AI raises $2.25M for low-cost infrared sensors

Bengaluru-based Nova Spectral AI has raised $2.25 million to develop low-cost short-wave infrared (SWIR) sensors, a technology that may improve camera performance in low light and through obscurants like smoke or fog. The funding round was secured from Shastra VC, Equirus InnovateX Fund, and unnamed angel investors.

The company, launched by IIT Kanpur graduates Anish Priyadarshi and Sanjeev Kumar, claims it can significantly reduce the cost of SWIR sensors. Current versions of this technology are typically expensive, restricting their use to specialized fields such as defence and industrial applications. Nova Spectral’s goal is to make these sensors more accessible, potentially expanding their use to areas like consumer electronics and automotive systems.

SWIR sensors operate in a wavelength range beyond human vision, allowing them to capture images through challenging conditions. This capability makes them useful for applications like surveillance, autonomous navigation, and industrial monitoring. However, their high cost has limited adoption. If Nova Spectral succeeds in its cost-reduction efforts, it could open doors to broader use cases, though the specifics of its approach remain undisclosed.

The funding will support the development of an infrared image sensor chip aimed at defence drones and surveillance systems. This aligns with India’s push to strengthen domestic semiconductor and defence technology capabilities. While the country has seen growth in deeptech startups, hardware commercialization at scale remains rare. Nova Spectral’s focus on affordability could give it an advantage, but the semiconductor industry is capital-intensive, and hardware startups often face lengthy development timelines before generating revenue.

Shastra VC, which led the round, has previously invested in deeptech ventures, while Equirus InnovateX Fund’s portfolio includes startups across sectors like agritech and fintech. The participation of these investors may signal confidence in the startup’s potential, though the modest funding amount suggests early-stage development.

Nova Spectral’s ambitions reflect a global trend of startups attempting to make niche semiconductor technologies more accessible. Similar companies have raised significant capital to develop specialized chips for AI, robotics, and other emerging fields. However, competition in the semiconductor space is intense, and success depends on execution and market demand.

Defence is likely to be Nova Spectral’s initial focus, given its emphasis on drones and surveillance. Other Indian startups in this space have also secured funding, reflecting growing interest in defence tech. However, defence contracts often involve lengthy procurement processes and regulatory hurdles, which could slow revenue generation.

If Nova Spectral achieves its cost-reduction targets, it could enable new applications beyond defence. For instance, autonomous vehicles might use SWIR sensors to improve visibility in poor conditions, while consumer devices like smartphones could integrate the technology for enhanced imaging. However, further advancements in miniaturization and cost efficiency would be needed for widespread adoption.

The startup’s immediate challenge will be balancing its long-term vision with near-term progress. The $2.25 million funding is a small step in an industry where chip development can require substantial investment. Nova Spectral will need to demonstrate tangible progress, such as working prototypes, to attract additional funding. Investors will closely monitor whether the company can deliver on its promise of making SWIR sensors more affordable—a goal that could reshape the market if achieved.

Sources: economictimes.indiatimes.com