QNu Labs has raised more than ₹350 crore to expand its quantum security business and develop a 2,000-km live quantum key distribution network between Bengaluru and Delhi under India’s National Quantum Mission.
Chennai | September 9, 2026 — The IIT Madras-incubated deep-tech startup has secured ₹200 crore in a Series A1 venture funding round led by the National Quantum Mission and venture capital firm Speciale Invest. It has also received approval for ₹150 crore in convertible debt under the research, development and innovation fund.
The latest capital takes QNu Labs’ total venture funding to ₹375 crore, according to the company. A portion of the funds will be used to build the Bengaluru–Delhi quantum key distribution, or QKD, network, which is intended to secure critical financial systems along the route.
QKD uses quantum physics-based methods to protect the exchange of encryption keys. QNu Labs develops hardware and software for quantum cybersecurity and communications as governments and businesses prepare for the possibility that full-scale quantum computers could compromise some existing encryption systems.
“Enterprises and governments worldwide are preparing for the transition to quantum-safe infrastructure and India’s National Quantum Mission is setting an aggressive timeline of 2029,” Sunil Gupta, co-founder of QNu Labs, said, according to the company’s statement reported by The Times of India.
The National Quantum Mission has contributed ₹25 crore through the IITM C-DOT Samgnya Technologies Foundation, a quantum communication thematic hub established under the mission. The funding round also includes investments from Gaja Capital, Sony Innovation Fund and Artha Ventures. Gaja Capital invested ₹35 crore, according to the report.
Gupta said QNu Labs is developing an indigenous quantum security platform for the Indian armed forces. The proposed applications include securing forward bases, data centres and tactical communications. The company is also targeting banks, telecom operators, critical institutions, utilities, and manufacturers developing systems for drones and satellites.
QNu Labs said it is engaging with 20 banks as financial regulators increasingly push institutions towards quantum compliance. The company is also pursuing partnerships with telecom companies and other organisations that operate or support critical infrastructure.
The fresh capital will be used to accelerate product development and expand sales in India and overseas, particularly in the United States and Australia. QNu Labs has established an independent US entity, with Gupta citing regulatory urgency in that market as a reason for the expansion.
The company expects to grow at about 40% annually and has set an objective of reaching ₹300–400 crore in revenue over the next few years. Its annual revenue was ₹40 crore in the 2024–25 financial year, according to Tracxn. The Bengaluru–Delhi QKD network and the company’s planned product and market expansion are the next stated milestones.
