Bengaluru & New Delhi | February 23, 2026: Hycosys, a Bengaluru-based deeptech engineering startup, has successfully raised USD 1 million (approx. ₹9 crore) in a seed funding round led by MountTech Growth Fund – Kavachh (MGF-Kavachh). The capital will be deployed to strengthen the engineering team, access advanced testing facilities, and accelerate the development of hydrogen-compatible micro gas turbines (MGTs) with applications across Distributed Power, Aerospace, and Mobility.
Technology and Vision
Founded in 2024 by aerospace engineering duo Dr. Tapish Agarwal and Ugandhar Reddy, Hycosys is building fuel-flexible micro gas turbines capable of running on:
- 100% hydrogen.
- Natural gas.
- Blended fuels.
The MGT platform is designed as an advanced propulsion system or jet engine, offering a clean energy alternative to diesel-based generators by mid-2027.
Future diversification plans include:
- Integration with microgrids for distributed clean power.
- Heavy commercial vehicle range extenders.
- Advanced propulsion units for large fixed-wing drones and aircraft.
Dr. Tapish Agarwal, Co-Founder & CEO, Hycosys, said: “MGF-Kavachh provides not just patient capital for validation, but also a nuanced understanding of strategic technologies that will advance India’s clean energy transition and self-reliance in advanced propulsion.”
Raj Sethia, Managing Partner & Co-Founder, MGF-Kavachh, added: “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 these visionary founders achieve their mission.”
Innovation Highlights
At the heart of Hycosys’ innovation is:
- A hydrogen-optimized combustor.
- A 3D-printed heat recovery unit.
- Advanced turbine design currently being tested at IIT-BHU.
This approach boosts efficiency while making the MGT up to 30% lighter than existing systems.
Market Opportunity
- India currently has 227 GW of installed diesel generator capacity, primarily for industrial backup and captive power.
- Replacing even 1% of this installed base with clean alternatives represents a multi-billion-dollar market opportunity.
- Hycosys’ indigenous MGT platform is strategically positioned to reduce import dependence and accelerate India’s Make-in-India clean energy transition.
About Hycosys
Founded in 2024, Hycosys is a deeptech engineering startup developing fuel-flexible, low-emission micro gas turbine systems engineered from first principles. Supported by government, VC, and CSR-backed programs, Hycosys prioritizes hydrogen-ready and clean fuel-flexible turbines for distributed power, mobility, and aerospace.
Advisory panel includes:
- Dr. Ramanujachari, Senior Former DRDO Scientist ‘H’.
- Prof. Muruganandam, IIT Madras.
- Dr. Anubhav Sinha, IIT BHU.
- Ashvani Shukla, CEO, Aeron Systems.
Hycosys aligns with India’s decarbonization goals, targeting 50% of total energy from non-fossil sources by 2030.
About MountTech Growth Fund – Kavachh|MGF-Kavachh is a venture capital fund investing in IP-led, technology-driven businesses supporting India’s strategic self-reliance agenda. Focus sectors include:
- Space Tech.
- Defence & Aerospace.
- Digital Communications.
- Semiconductors.
- Critical Minerals & Materials.
- Other deeptech areas of national significance.
Founder Profiles
- Dr. Tapish Agarwal, Co-Founder & CEO: Aerospace engineer from IIT Kanpur, holds a Safran-funded PhD in combustion from CentraleSupélec, France. Over 10 years of experience in gas turbine design, including advanced turbine development at Technion, Israel.
- Ugandhar Reddy, Co-Founder & CTO: Alumnus of BITS Pilani and University of Southampton, with 15+ years of experience in combustion and propulsion systems at GE Aviation and Reaction Engines (UK).
 in seed funding from MountTech Growth Fund – Kavachh){kind=link}