Hycosys Raises $1Mn Led by MGF Kavachh to Develop Hydrogen-Compatible Micro Gas Turbines

Deeptech engineering start-up Hycosys has raised over $1 million (approximately ₹9 crore) in a seed funding round led by MountTech Growth Fund – Kavachh.

The Bengaluru-based start-up is developing a fuel-flexible micro gas turbine (MGT) with applications across distributed power, aerospace, and mobility. The MGT is an advanced propulsion system, similar to a jet engine, capable of running on 100% hydrogen, natural gas, or blended fuels.

The capital will be used to strengthen the engineering team, access advanced testing facilities, further develop the micro gas turbine, and demonstrate a clean energy alternative to diesel-based power generators by mid-2027.

“MGF-Kavachh provides not just the patient capital we need for validation, but also a nuanced understanding of strategic technologies that will advance India’s clean energy transition and self-reliance in advanced propulsion,” said Tapish Agarwal, co-founder and CEO of Hycosys.

The company also plans to diversify its applications by integrating the MGT with microgrids, heavy commercial vehicle range extenders, and advanced propulsion systems for large fixed-wing drones and aircraft.

At the core of the start-up’s innovation is a hydrogen-optimised combustor, a 3D-printed heat recovery unit, and an advanced turbine design, currently being tested at IIT‑BHU. This approach significantly improves efficiency while making the turbine up to 30% lighter than existing systems.

Raj Sethia, managing partner and co-founder at MountTech Growth Fund – Kavachh, said, “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 the founders in achieving their vision.”

According to industry reports, India currently has over 227 GW of installed diesel generator capacity, primarily used for industrial backup and captive power. Replacing even 1% of this capacity with clean alternatives represents a multi-billion-dollar market opportunity.

The partnership with MountTech Growth Fund – Kavachh is aimed at addressing this gap by delivering a scalable, indigenous solution that reduces import dependence and accelerates India’s transition to cleaner energy through Make-in-India technologies.