The growth of generative artificial intelligence (GenAI) and the meteoric rise of Chat GPT have boosted the momentum for quantum computing with many startup founders and investors betting on it.As per Tracxn, there are nearly 50 active startups currently in the quantum computing segment. These startups have raised over $12.2 million in funding this year against $5.2 million in 2023. Besides IPV, Speciale Invest, Exfinity Ventures, 8X Ventures, Soonicorn Ventures, YourNest, SIDBI Venture Capital, We Founder Circle, and Venture Catalysts are some of the investors.Simply put, quantum computing utilises quantum mechanics to solve complex problems, currently beyond the reach of classical computers.Bloq Quantum, a Kollam-based startup that offers a user-friendly low-code interface to enterprises to accelerate the overall adoption of quantum computing, was founded only this year but has already bagged funding from venture capitalist (VC) firm Inflection Point Ventures.
The founders claim they have since been approached by at least 20 other VCs and many angel syndicates. The startup has so far received a total funding of `1.3 crore.BosonQ Psi, a Bhilai-based startup that develops quantum simulation software also bagged Series A funding last month. It has developed the world’s first quantum-powered engineering simulation software, BQPhyTM, to help enterprise customers from the automotive, aerospace and manufacturing sectors to accelerate their time-to-market significantly. Similarly, QpiAI, a full stack quantum compute startup confirms that although the adoption has just begun, there is increased investor interest. Headquartered in Bengaluru, the startup was founded in 2019 and helps Fortune 500 companies solve problems of complex high dimensional data and large models with vertical integration of AI and quantum computers.Manoj Agarwal, managing partner, Seafund told FE, as use cases of AI, deeptech and Gen AI increase, more high- computing power would be needed. “This will drive the quantum computing business models through a fast growth trajectory,” he said.
Chintan Antani, vice-president, IIMA Ventures cautioned that scaling quantum computing businesses is not easy due to the long gestation period. “Building commercially viable quantum hardware and software is highly resource-intensive, requiring significant R&D and infrastructure investments along with high capital expenditure,” he said.However, he believes that scaling is possible in specific niches. For instance, quantum computing as a service (QCaaS) and early applications like quantum key distribution (QKD) and quantum communication hold promise to scale faster in critical sectors such as defence, financial services, and telecommunications. “That said, the growth trajectory depends on addressing talent gaps, collaboration between academia and industry, and fostering an ecosystem for innovation,” Antani added.
Experts say that as the application of AI increases, problem-solving is evolving from linear programming to complex architectures. However, speed is critical and this is where quantum computing improves speed without compromising quality or security. They also process and account for uncertainty—a key input that increases volatility in today’s fast-changing world. “So when you want to solve for self-driving cars or drone delivery in emerging markets, where traffic roles may not be as clear, you would need a higher degree of autonomous and real-time decision-making – something a quantum system would be able to do,” Dhruv Dhanraj Bahl, managing partner, Eternal Capital explained.
For now, quantum computing will be first used by large industries such as automotive, pharma, and insurance sectors. “This is one of the key new areas we are interested in and are constantly working on building our thesis in this space. Startups will play a key role, especially when driving mass adoption and building applications on quantum infrastructure,” Abhishek Prasad, MD, Cornerstone Ventures, said. The firm expects some of these opportunities to start emerging in the next 12-18 months.
