Bengaluru: Bengaluru-based deeptech engineering startup Hycosys, has raised over USD 1 million (approximately ₹9 crore), in a seed funding round led by MountTech Growth Fund – Kavachh. The capital will be deployed to strengthen the engineering team, access advanced testing facilities, to develop a micro gas turbine (MGT), and demonstrate a working clean energy alternative to diesel-based power generators by mid-2027.
Founded by aerospace engineering duo, Dr Tapish Agarwal and Ugandhar Reddy, Hycosys is developing a fuel-flexible MGT with applications across Distributed Power, Aerospace and Mobility. The MGT is essentially an advanced propulsion system or jet engine capable of running on 100% hydrogen, natural gas, or blended fuels.
Plans are also underway to diversify, integrating the MGT with micro grids, heavy commercial vehicle range extenders, and supply advanced propulsion units engineered for integration with large fixed-wing drones and aircraft.
“MGF-Kavachh provides not just the patient capital we need for validation, but a nuanced understanding of strategic technologies that will advance India’s clean energy transition and self-reliance in advanced propulsion,” said Dr Tapish Agarwal, Co-founder and CEO, Hycosys.
At the heart of the startups unique innovation is a hydrogen optimised combustor, 3D-printed heat recovery unit, and advanced turbine design, currently being tested at IIT-BHU. The approach significantly boosts efficiency, while making the MGT up to 30% lighter than existing systems.
Raj Sethia, Managing Partner and Co-Founder, MountTech Growth Fund – Kavachh, added that, “Indigenous MGTs being developed by Tapish and Ugandhar are essential to support India’s strategic need for homegrown energy infrastructure and advanced propulsion systems. We look forward to supporting the super smart founders achieve their vision.”
As per industry reports, India currently has over 227 GW of installed diesel generator capacity, primarily catering to industrial backup and captive power requirements. Replacing even 1% of this installed base with clean power alternatives represents a multi-billion-dollar market opportunity, underscoring the massive transition potential within distributed energy alone.
The partnership with MGF-Kavachh is strategically positioned to address that gap by delivering a scalable, indigenously developed solution that reduces import dependence and accelerates India’s transition to cleaner alternatives through Make-In-India technologies.
