Bengaluru Startup H2LooP Secures $2 Mn Seed Funding for AI Systems Engineering

Hardware & Human in the LooP (H2LooP), an AI-native systems engineering platform, has secured $2 million in seed funding, led by Speciale Invest and 3one4 Capital.

The AI lab builds domain-specific intelligence for lower-level system software and enterprise infrastructure. It stated that the funding will support large-scale enterprise implementations and venture into sectors such as data centres, UAVs, and robotics, where system reliability, real-time performance, and data management are essential.

“We’re seeing strong demand from enterprises looking to modernise system engineering workflows. H2LooP’s platform delivers immediate value by reducing development cycles and improving code quality, making it a compelling solution for teams working on complex systems,” Sairanjan Mishra, CEO and Co-founder, H2LooP, said in a statement. 

H2LooP is already working with semiconductor companies, defence organisations, and telecom OEMs on real-world deployments. The company has also been selected for the Infineon Global Startup Programme and recognised by the India Electronics and Semiconductor Association (IESA) as a winner in the Startup IP category.

Commenting on the investment, Arjun Rao, Founding Partner at Speciale Invest, said, “Hardware innovation is advancing rapidly, but the software powering it needs to keep pace in the age of AI. H2loop is addressing a deeply technical and underserved problem by building AI-native infrastructure for systems software, an area that will be foundational to the next wave of hardware breakthroughs."

Sonal Saldanha, Principal, 3one4 Capital, added, “H2LooP’s approach of combining customer data with domain-specific AI models positions it strongly in verticals where speed is vital, but the cost of failure is immense.”

H2LooP, founded by Mishra and Pulkit Agrawal in 2025, is working on a data platform tailored for hardware engineering, along with specialised foundational coding models for software operational in physical systems, to accelerate development cycles and ensure more dependable results.

The company also implements automated verification and validation processes to ensure the generated code complies with hardware and system specifications.