AI-led manufacturing startup Terafac has raised ₹6.5 crore in a pre-seed funding round led by Inuka Capital, marking a strong investor interest in India's industrial automation space.
In a promising development for India’s emerging deep-tech ecosystem, Bengaluru-based startup Terafac has raised ₹6.5 crore (~$800,000) in a pre-seed funding round led by Inuka Capital. This round also saw participation from a range of angel investors, including Anupam Mittal (Founder, Shaadi.com), Ranjit Punja (CEO, CreditMantri), and executives from Google, Nvidia, and Microsoft.
Founded in 2024 by IIT Bombay and IISc alumni, Terafac is building a platform that aims to automate factory operations using a combination of AI, machine vision, and robotics. The startup is currently in stealth mode, with plans to roll out its first full-stack solution later this year.
A Vision to Redefine Indian Manufacturing
Terafac’s founding team comprises Nikhil Krishna, Anusha Murthy, and Aman Verma, each bringing deep experience in manufacturing, robotics, and AI systems. The company is on a mission to make Indian factories smarter, leaner, and globally competitive by helping them transition from manual operations to automated workflows.
In a statement, the founders noted that India’s manufacturing sector—particularly small and medium enterprises (SMEs)—has remained largely untouched by modern automation due to high costs and limited technical adoption. Terafac plans to fill this gap with modular, affordable automation kits that integrate seamlessly with existing assembly lines.
“Our platform will empower factory owners with real-time insights and intelligent automation, eliminating redundancies and boosting productivity,” said Nikhil Krishna, co-founder of Terafac.
Investor Confidence in Industrial AI
Inuka Capital, the lead investor, has been actively backing deep-tech startups that combine software and hardware to create scalable solutions. Commenting on the investment, a spokesperson from Inuka said, “We believe Terafac is at the forefront of the next industrial revolution in India. Their approach—fusing AI, IoT, and robotics—offers a practical, high-impact solution for modernizing India’s outdated manufacturing systems.”
This funding round signals growing investor confidence in AI-driven industrial innovation—a sector that has long lagged behind consumer tech in India. According to experts, the global industrial automation market is projected to reach $265 billion by 2027, and India’s contribution is poised to increase significantly.
Future Plans and Market Potential
The startup will use the funds to:
- Build its core engineering and product teams
- Accelerate prototype development and pilot programs
- Deploy early solutions with select manufacturing partners
Terafac is targeting manufacturing hubs in Gujarat, Maharashtra, and Tamil Nadu, with early interest from industries like automotive components, textiles, and FMCG packaging.
Its USP lies in its plug-and-play AI modules, which use machine vision and predictive analytics to detect defects, track production KPIs, and automate inspection processes. The founders believe this will bring 10x efficiency gains for legacy factories.
Riding the AI and ‘Make in India’ Momentum
This funding comes at a time when India’s push for ‘Make in India’ and AI adoption in core industries is gaining momentum. Recent policy initiatives and incentives for manufacturing digitization have encouraged tech startups to innovate for the industrial sector.
Terafac’s success also reflects a growing trend of young Indian founders solving large, underserved problems using frontier technologies like AI, computer vision, and robotics.
“Factory floors have seen little disruption compared to other sectors like finance or e-commerce. It’s time to bring innovation to the backbone of the Indian economy,” said co-founder Anusha Murthy.