Hycosys Raises USD 1 Million Led by MGF to Build Hydrogen-Ready Micro Gas Turbines

Bengaluru-based deeptech startup Hycosys has raised over USD 1 million (about INR 9 crore) in a seed funding round led by MountTech Growth Fund – Kavachh to develop hydrogen-compatible micro gas turbines (MGTs).

The funding will be used to expand its engineering team, access advanced testing facilities and build a working prototype by mid-2027. The company aims to position its system as a clean alternative to diesel generators used for industrial backup and captive power.

Founded by aerospace engineers Dr. Tapish Agarwal and Ugandhar Reddy, Hycosys is developing a fuel-flexible turbine capable of operating on 100 percent hydrogen, natural gas and blended fuels. The platform is designed for applications across distributed power systems, mobility and aerospace.

The startup is also exploring integration of its turbines with microgrids, heavy commercial vehicle range extenders and propulsion units for large fixed-wing drones and aircraft.

“At the heart of our technology is a hydrogen-optimised combustor and advanced turbine architecture that improves efficiency while reducing system weight,” said Agarwal, Co-founder and CEO of Hycosys.

Key components, including a 3D-printed heat recovery unit and advanced turbine design, are currently undergoing testing at IIT-BHU. The company claims its system can be up to 30 percent lighter than conventional micro gas turbines.

Raj Sethia, Managing Partner and Co-Founder of MountTech Growth Fund – Kavachh, said that indigenous turbine technologies are critical for India’s energy security and strategic infrastructure needs.

India currently has an estimated 227 GW of installed diesel generator capacity used mainly for industrial backup power. Replacing even a small portion with low-emission alternatives presents a multi-billion-dollar market opportunity, particularly within distributed energy systems.

Hycosys plans to develop an indigenously designed turbine platform aligned with India’s long-term decarbonisation goals and its push for domestic manufacturing under Make-in-India.