Indian cybersecurity company QNu Labs has raised ₹200 crore, or about $21 million, to expand its quantum-safe security products and pursue customers in India and international markets.
The Series A1 round was led by India’s National Quantum Mission and venture-capital firm Speciale Invest, according to the company. Sony Innovation Fund, Gaja Capital, Artha Ventures and other investors also participated.
The financing brings the Bengaluru-based company’s total capital raised to ₹375 crore, or roughly $39.4 million.
QNu Labs said it will use the new funding to accelerate research and development, strengthen its sales operations and expand its technology into quantum sensing and artificial intelligence. Part of the investment will serve as the company’s contribution to a government-supported project intended to build the technology backbone for India’s Quantum Secure and Sensing Networks.
The company is developing security tools designed to protect sensitive information against attacks involving quantum computers. Researchers expect sufficiently powerful quantum machines could eventually defeat some of the public-key encryption methods used to secure financial transactions, government communications and other digital systems.
The timing of that threat remains uncertain, but governments and companies have started moving toward post-quantum cryptography, which uses mathematical methods designed to resist attacks by both conventional and quantum computers. Some organizations are also evaluating quantum key distribution, which uses principles of quantum physics to help exchange encryption keys.
Funding Follows Push for Quantum-Safe Migration
QNu Labs said it has spent more than a decade developing a technology stack that includes quantum key distribution, post-quantum cryptography and quantum random-number generation. Its systems have been deployed in government, critical infrastructure and banking, financial services and insurance, according to the company.
“India has moved early on in the quantum era,” QNu Labs co-founder Sunil Gupta said. “The National Quantum Mission, through its IIT Madras hub, has laid the foundation and with implementation timelines published in 2026 across sectors, quantum-safe technology is shifting from policy to commercial deployment.”
The National Quantum Mission is supporting domestic research and commercialization across quantum computing, communications, sensing and materials. IITM C-DOT Samgnya Technologies Foundation serves as the mission’s national hub for quantum communication.
QNu Labs said about 80% of the latest round came from new investors, including international participants. The company plans to use that backing to increase deployments in sectors that manage sensitive or long-lived data.
“Quantum-safe security is becoming national infrastructure — as essential to a digital economy as power and transport are to a physical one,” Gaja Capital co-founder and Managing Partner Gopal Jain said.
Competition Moves From Research to Deployment
The investment comes as cybersecurity providers compete to help organizations identify vulnerable encryption, test replacement technologies and manage multiyear migrations. That process can involve cataloging cryptographic systems, updating software and hardware, and maintaining compatibility with existing networks.
QNu Labs is seeking to position itself as an India-based supplier capable of serving domestic security needs while competing globally. The company said the funding will help it move from developing and testing its technology toward larger commercial deployments.
Speciale Invest first backed QNu Labs five years ago. Managing Partner Vishesh Rajaram said quantum-safe security has since moved closer to mainstream adoption as governments and businesses prepare for future quantum threats.
Sony Innovation Fund said its participation reflects a broader focus on India’s expanding deep-technology sector. Its involvement, along with backing from domestic investors and the National Quantum Mission, also points to increasing institutional interest in locally developed quantum-security technology.
QNu Labs did not disclose a valuation associated with the financing.
