Hello dear reader,
Each week, we cover startups solving geography-specific problems or those enabled by local context, as well as look at those expanding beyond their current markets.
This week, the struggle continues with not many startups raising money.
Location, Location, Location
India: Silicon Dreams
Mindgrove Technologies, a semiconductor design startup from India, raised a $8 million Series A round. Rocketship.vc and Speciale Invest co-led the round, joined by Mela Ventures, Peak XV Partners, Nishchay Goel, Whiteboard Capital, and Anshul Goel.
The Product
Mindgrove started with an ambitious vision: to create electronic products for the Indian market. But they quickly realized they couldn’t access the right components—too expensive, missing key features, or both. So, they took matters into their own hands and decided to design chips themselves.
The company’s flagship product is a System on a Chip (SoC), a compact, all-in-one chip that powers everything from everyday gadgets like smart bulbs and fridges to more complex systems like industrial machines, cars, and even medical devices. Think of it as the brains behind the operation, tailored for specific tasks.
One of Mindgrove’s unique features is that their chips are built on Shakti architecture, an open-source project from IIT-Madras, making them a homegrown alternative to the usual Arm and x86 designs.
Mindgrove’s first products is targeting IoT devices and by mid-2024, they had tested their first prototypes and aimed to ramp up production by November.
The Business Model
Mindgrove’s business model is straightforward on paper but there are nuances. They design the chips, outsource production to a fab, and sell to customers. But they cater to different needs through three tiers:
Direct Buyers grab the raw chips.
Hardware Solution Buyers want plug-and-play modules or pre-assembled boards, leaving only software for the customer to handle.
Turnkey Solution Buyers take the full package—hardware and software.
What’s really interesting is how Mindgrove positions itself in the market. They fit between two extremes: the global leaders who strive to make the most feature-packed chips, and the low-cost players focused on slashing prices. Mindgrove aims for a sweet spot—offering 70-80% of the high-end features while surpassing the basic offerings of the price-focused competitors.
The Local Angle
Strong Government Support: In 2022, the Indian government launched the India Semiconductor Mission, aiming to build a self-reliant semiconductor industry. With a financial outlay of $10 billion, the program focuses on establishing local chip design, production, and packaging. Unsurprisingly, this hefty investment has attracted both local and foreign players, leading to several project announcements since the initiative’s launch. For Mindgrove, this means potential government support as a chip designer and access to cheaper production facilities in the future.
Huge Market Potential: Although estimates vary, India’s semiconductor industry could grow from $34.3 billion today to $150 billion by 2030. India’s share of global semiconductor consumption is expected to climb to 10%. And because it’s India, growth is everywhere—notably in the IoT sector, which is expanding at an annual rate of 15-25%. Which’s great for IoT-focused Mindgrove.
Access to Talent (In Theory): This one’s a mixed bag. On the bright side, about 20% of global semiconductor chip design talent is Indian. However, a report by TeamLease Degree Apprenticeship mentions that India could face a talent shortage of 250,000 to 300,000 professionals by 2027. The government does have programs to accelerate talent development, but it’ll need to step on the gas. What’s clear, though, is that India has a strong foundation to build upon.
From Here to There
Calo: Ready-to-Eat Beyond the Middle East
Bahrain-based Calo has raised $25 million to take its ready-to-eat meal service beyond the Middle East. The company focuses on delivering healthy, personalized meals, catering to the growing demand for convenient nutrition solutions in new markets.
Ver-ID: Simplifying Identity Verification
UK-based Ver-ID has raised $2 million in angel funding to accelerate the growth of its identity verification SaaS platform across Europe. The startup aims to provide secure and seamless identity solutions for businesses, ensuring compliance with global regulations and improving user trust.
Pixevia: Smarter Retail on a Global Stage
Lithuanian AI startup Pixevia has secured €340,000 to accelerate the global rollout of its AI-driven retail solutions, focusing on Europe and the US. Pixevia offers autonomous store technology that reduces operational costs and enhances customer experiences, helping retailers optimize efficiency worldwide.
Cargofl Klassroom: Training Tomorrow’s Logistics Leaders
Indian startup Cargofl Klassroom has secured funding to scale its logistics-focused training platform in Southeast Asia, MENA, and North America. By equipping professionals with modern supply chain skills, the startup is addressing the talent gap in India’s rapidly growing logistics sector.
