Raana Semiconductors (RSPL), an Indian semiconductor solutions provider company specializing in crystal growth systems, has raised $3 million in seed funding in its first institutional capital round. Crystal growth systems are central to solar ingot manufacturing, as they produce high-quality silicon ingots from which wafers are cut to make solar cells.

The pure equity round was led by Equirus InnovateX Fund and Artha Venture Fund, with participation from IvyCap Ventures, PointOne Capital, CIIE Initiatives (IIMA Ventures), and angel investor Garimella Laxminarayana.

The funds will be used to accelerate R&D and product development of indigenously designed Czochralski (CZ) monocrystalline silicon ingot growth systems, initially targeting 10–12 inch solar-grade silicon ingots.

In the CZ method, high-purity polysilicon is melted in a quartz crucible, and a seed crystal is slowly pulled to form a monocrystalline ingot. The process requires tight control of temperature, pulling speed, and contamination to minimize defects and impurities and produce high-quality wafers for solar cells.

The company plans to later expand into semiconductor-grade wafer production, supporting India’s push for self-reliance in solar, semiconductor, defence, and strategic technologies.

The Czochralski technique, paired with the company’s ADCS closed-loop system, delivers precise, automated single-crystal growth. Users set crystal shape and dimensions via an industrial PC, while real-time feedback continuously optimizes conditions. The result is higher crystal quality, improved efficiency, fewer errors, and broad applicability across semiconductors, solar, optoelectronics, and materials R&D.

RSPL is currently the only private Indian company focused exclusively on CZ crystal growth equipment and single-crystal development.

Speaking to Mercom, Founder and Chief Executive Officer of RSPL, Rajasekar Elavarasan, said, “We are trying to build the technology for ingots. As of now, we have the technology for the lower diameters. Normally, the larger diameters are required in this space. Within five years, we should be able to cater to at least 5 GW of ingot manufacturing capacity.”

“There is a significant supply gap in solar wafers (silicon wafers). Ingots and wafers are currently fully imported, primarily from China, despite being critical inputs for solar modules. If the country aims to be self-sufficient in energy, particularly solar, it must build domestic ingot and wafer manufacturing capacity,” Elavarasan added.

The company plans to commercialise its systems for the solar industry within 18 months, enabling gigawatt-scale silicon ingot production, and is targeting revenues of over ₹2 billion (~$22.01 million) in the next three to four years, backed by existing government and institutional orders.

Commenting on Indian companies’ reluctance to move away from imported ingots and wafers, Elavarasan said, “The Ministry of New and Renewable Energy has recently directed that 15 GW of ingot manufacturing be set up over the next two years, signalling strong government intent. He added that major players, including Adani, are expanding capacity, and several other companies have announced plans to enter the ingot manufacturing segment.”

The company plans to expand its manufacturing capacity and supply materials to the semiconductor and solar industries. Over time, it aims to position itself as a semiconductor equipment and materials company, with its supply portfolio anchored in renewable energy.

In September last year, accelerating its push to build domestic manufacturing capacity across the solar value chain, the government proposed mandating the use of India-made wafers under the Approved List of Models and Manufacturers (ALMM) starting June 1, 2028. MNRE in a draft amendment to the ALMM order, proposes creating an ALMM List-III for wafers, on the lines of solar modules and cells. The amendment proposes that all projects falling under ALMM’s purview must mandatorily source their modules from ALMM List-I. Such modules must also use solar cells from the ALMM List-II. The cells, in turn, must use wafers from ALMM List-III.