Top 10 Embedded Finance Startups In 2026
India has emerged as a global powerhouse in embedded systems development, transforming from a primarily service-oriented technology market into a hub for cutting-edge product engineering and innovation. As we progress through 2026, the embedded systems industry in India represents a vibrant ecosystem where established multinational corporations work alongside innovative startups to develop everything from automotive electronics and industrial automation systems to Internet of Things devices and aerospace applications.
Embedded systems form the invisible intelligence powering modern technology. These specialized computing systems are designed to perform dedicated functions within larger mechanical or electrical systems, operating with real-time constraints and often with minimal human intervention. From the antilock braking system in your car to the flight control computers in aircraft, from smart home devices to industrial robots, embedded systems are the technological foundation of contemporary life.
The Indian embedded systems market has experienced remarkable growth driven by several converging factors. The government’s “Make in India” initiative has encouraged domestic manufacturing and product development, while programs like the India Semiconductor Mission and Design Linked Incentive Scheme have provided crucial support for chip design and hardware innovation. India’s strength in software engineering has naturally extended into embedded software development, creating a unique competitive advantage where hardware expertise meets software sophistication. Additionally, the country’s large pool of engineering talent from premier institutions like the Indian Institutes of Technology and the Indian Institute of Science has provided a steady pipeline of skilled professionals capable of tackling complex embedded systems challenges.
The embedded systems industry in India serves diverse sectors including automotive, aerospace and defense, telecommunications, consumer electronics, healthcare devices, and industrial automation. Companies range from global technology giants with extensive Indian operations to specialized product engineering firms and innovative startups developing next-generation semiconductor solutions. The ecosystem has matured significantly, with Indian companies now not only providing engineering services to global clients but also developing proprietary intellectual property, designing indigenous processors, and creating innovative embedded platforms.
1. Tata Elxsi
Tata Elxsi stands as India’s undisputed leader in embedded systems and design services. Founded in May 1989 in Bengaluru with a vision to advance electronics, embedded systems, and software, the company has evolved into a global design and technology services provider serving industries including automotive, media and communications, healthcare, and transportation. Listed on both the National Stock Exchange and the BSE, Tata Elxsi operates with approximately 16,000 employees across multiple continents.
The company’s comprehensive embedded software development services span the entire product lifecycle from system development and integration to validation and deployment. Tata Elxsi’s expertise encompasses embedded product design for next-generation connected devices, autonomous systems, and software-defined vehicles. The company has established itself as a critical partner for global automotive manufacturers, developing advanced driver assistance systems, electric vehicle platforms, and in-vehicle infotainment solutions.
In 2025 and early 2026, Tata Elxsi secured several landmark deals including a multi-year product engineering consolidation worth over one hundred million dollars with a major media and communications operator, marking the largest deal in the company’s history. The company also launched AVENIR, a cloud-native software-defined vehicle suite co-developed with Qualcomm, and MOBIUS+, a blockchain-powered solution for complete battery lifecycle traceability developed with Minespider. Tata Elxsi’s partnership with Dräger to advance critical care innovation demonstrates its expanding footprint in medical device development.
The company’s design-led, technology-driven approach integrates cutting-edge technologies including artificial intelligence, Internet of Things, cloud computing, and virtual reality into embedded solutions. With engineering centers across Europe, the United States, and Asia, Tata Elxsi exemplifies how Indian companies are leading global innovation in embedded systems while maintaining strong roots in engineering excellence and design thinking.
2. Robert Bosch India
Robert Bosch India represents one of the world’s leading automotive and industrial technology companies with substantial embedded systems capabilities in India. Through its engineering and business solutions division, Bosch has established India as a critical center for developing embedded solutions that power automotive electronics, industrial automation, and smart infrastructure globally.
The company’s embedded systems expertise spans automotive electronic control units, advanced driver assistance systems, engine management systems, and battery management solutions for electric vehicles. Bosch’s Indian operations contribute significantly to global product development, with engineers working on cutting-edge automotive technologies including autonomous driving systems and electrification platforms. The company’s deep domain knowledge in automotive standards, safety-critical systems, and real-time operating systems makes it an industry benchmark for embedded excellence.
Bosch Global Software Technologies in India serves as the company’s global software and engineering hub, employing thousands of engineers across multiple locations in Bengaluru and other cities. The division focuses on embedded software development, IoT solutions, and digital transformation services. Employees at Bosch India work on projects ranging from embedded Linux development to AUTOSAR-compliant software for next-generation vehicles. The company maintains strong relationships with engineering colleges and provides comprehensive training programs, making it a preferred destination for embedded systems engineers seeking to work on complex, safety-critical applications.
The company’s commitment to innovation is reflected in its investments in emerging technologies including artificial intelligence for predictive maintenance, edge computing for industrial applications, and advanced sensor fusion for autonomous systems. Bosch’s ability to integrate hardware and software seamlessly across domains makes it a formidable player in India’s embedded systems landscape.

3. KPIT Technologies
KPIT Technologies has carved a unique niche as India’s leading independent software development and integration partner for the automotive and mobility ecosystem. Headquartered in Pune with approximately 13,000 employees globally, KPIT specializes in making software-defined vehicles a reality through embedded software, artificial intelligence, and digital solutions.
Founded in 1990 and publicly listed with a market capitalization of approximately 26,000 crore rupees as of early 2026, KPIT has established itself as a global partner to automotive leaders. The company’s expertise spans autonomous driving and advanced driver assistance systems, electric and conventional powertrain systems, connected vehicle solutions, vehicle diagnostics, and AUTOSAR-based software development. KPIT has filed 58 patents and maintains development centers across Europe, the United States, Japan, China, Thailand, and India.
The company’s deep specialization in automotive embedded systems distinguishes it from broader IT services firms. KPIT’s engineers work on mission-critical software that controls everything from engine operations to advanced safety systems. The company has made significant investments in emerging areas including agentic artificial intelligence for software development, in-car digital experiences through its acquisition of AirConsole, and vehicle engineering design capabilities through the Caresoft acquisition.
In fiscal year 2026, KPIT reported steady growth despite broader industry headwinds, with the company targeting continued revenue expansion through new client acquisitions and deepening relationships with existing automotive manufacturers. KPIT’s focus on the CASE paradigm (Connected, Autonomous, Shared, Electrified) positions it at the intersection of the automotive industry’s most transformative trends, making it an essential partner for manufacturers navigating the transition to software-defined mobility.
4. HCL Technologies
HCL Technologies, headquartered in Noida, represents one of India’s largest IT services companies with substantial embedded systems and engineering research and development capabilities. The company employs over 2,900 semiconductor and embedded systems engineers across multiple locations in India, providing comprehensive services spanning hardware and software design, embedded systems development, and product testing.
HCL’s embedded engineering solutions serve diverse industries including aerospace, defense, healthcare, consumer electronics, and telecommunications. The company’s capabilities encompass firmware development for microcontrollers and microprocessors, embedded Linux and real-time operating system development, device driver creation, hardware design and prototyping, and system integration and validation. HCL also operates Sankalp Semiconductor, acquired in 2019, which specializes in analog and mixed-signal chip design for automotive, IoT, medical electronics, and wireless technologies.
The company’s approach to embedded systems development emphasizes innovation in IoT and real-time systems, with significant focus on connected devices and intelligent edge computing. HCL’s global delivery model allows clients to access Indian engineering talent for complex embedded projects while maintaining rigorous quality standards and regulatory compliance. The company’s work in medical device development, automotive electronics, and industrial automation demonstrates its versatility across domains requiring high-reliability embedded systems.
HCL’s employee-friendly policies, comprehensive training programs, and career development opportunities make it an attractive destination for embedded systems professionals. The company’s investments in emerging technologies including artificial intelligence, machine learning, and advanced analytics are increasingly being integrated into embedded systems projects, creating new opportunities for innovation in intelligent, connected products.
5. Wipro Technologies
Wipro, headquartered in Bengaluru, stands among India’s oldest and most respected IT services companies with robust embedded systems capabilities. The company specializes in embedded solutions for automotive, telecommunications, industrial automation, and consumer electronics, focusing on IoT, artificial intelligence, and embedded software development.
Wipro’s embedded engineering services encompass the complete product development lifecycle from concept and architecture design through prototyping, validation, and production support. The company works extensively with global automotive manufacturers on embedded software for vehicle control systems, infotainment platforms, and telematics solutions. In telecommunications, Wipro develops embedded software for network equipment, base stations, and routing systems. The industrial automation practice focuses on programmable logic controllers, human-machine interfaces, and supervisory control and data acquisition systems.
The company’s embedded systems team brings expertise in multiple processor architectures including ARM, x86, MIPS, and emerging RISC-V platforms, working with real-time operating systems like VxWorks, QNX, and embedded Linux. Wipro’s approach emphasizes modular, scalable architectures that can adapt to evolving product requirements while maintaining backward compatibility and supporting long product lifecycles typical in embedded applications.
Wipro’s investments in digital technologies have created new opportunities for embedding advanced capabilities into traditional products. The company’s work on digital twins, predictive maintenance using machine learning, and edge analytics for industrial IoT exemplifies how embedded systems are evolving from simple control systems to intelligent platforms capable of autonomous decision-making and continuous learning. As manufacturers across industries pursue digital transformation, Wipro’s combination of domain expertise and technological sophistication positions it as a valuable partner for reimagining products through embedded intelligence.
6. L&T Technology Services
L&T Technology Services (LTTS) operates as a leading engineering research and development services company, providing comprehensive product engineering and embedded systems development for global clients. As part of the Larsen & Toubro group, LTTS brings decades of engineering heritage to its embedded systems practice, serving industries including transportation, industrial machinery, medical devices, telecommunications, and consumer electronics.
The company’s embedded systems capabilities span hardware design, firmware development, middleware creation, and application software development across diverse platforms and processor architectures. LTTS works on safety-critical systems requiring adherence to stringent standards including ISO 26262 for automotive functional safety, DO-178C for aerospace software, and IEC 62304 for medical device software. This regulatory expertise combined with deep domain knowledge makes LTTS particularly valuable for clients developing products in heavily regulated industries.
LTTS has made significant investments in emerging areas including electric vehicle systems, battery management solutions, vehicle-to-everything communication technologies, and advanced driver assistance systems. The company’s embedded teams work closely with semiconductor partners to optimize software for new processor architectures and develop innovative solutions leveraging the latest silicon capabilities. LTTS also maintains strong competencies in legacy system modernization, helping clients migrate embedded systems from obsolete platforms to contemporary architectures while preserving critical functionality.

While LTTS has faced some growth challenges in fiscal year 2026 due to broader economic uncertainties and leadership transitions, the company continues to invest in embedded systems capabilities and maintain a strong position in the automotive and industrial sectors. The company’s end-to-end engineering approach, combining mechanical, electrical, and software expertise, enables it to tackle complex embedded systems projects requiring cross-disciplinary collaboration.
7. Infosys
Infosys, one of India’s pioneering IT services giants based in Bengaluru, has developed substantial embedded systems capabilities serving the automotive, telecommunications, and industrial automation sectors. The company delivers robust embedded solutions for global clients, focusing on modern architectures, connected systems, and intelligent devices.
Infosys’s embedded engineering practice emphasizes next-generation technologies including software-defined architectures, containerized embedded software, and cloud-native development approaches adapted for resource-constrained embedded environments. The company works extensively on automotive embedded systems including electronic control units, gateway controllers, and domain control units for software-defined vehicles. In telecommunications, Infosys develops embedded software for network infrastructure including base stations, routers, and optical networking equipment.
The company’s approach to embedded systems development integrates agile methodologies, continuous integration and deployment practices, and model-based development techniques. Infosys has invested significantly in tools and platforms that accelerate embedded software development while ensuring quality, security, and compliance. The company’s embedded teams collaborate closely with its artificial intelligence, cloud, and cybersecurity practices to embed advanced capabilities into products ranging from industrial machinery to consumer devices.
Infosys maintains comprehensive training programs for embedded systems engineers, with dedicated learning tracks covering processor architectures, real-time operating systems, communication protocols, and domain-specific standards. The company’s scale allows it to serve both large enterprises requiring extensive embedded engineering support and smaller organizations seeking specialized expertise for targeted projects. As embedded systems increasingly incorporate connectivity, artificial intelligence, and over-the-air update capabilities, Infosys’s broad technology portfolio positions it to address the full spectrum of modern embedded system requirements.
8. Mindgrove Technologies
Mindgrove Technologies represents the new generation of Indian embedded systems companies, focusing on indigenous chip design and system-on-chip development. Founded in 2021 by Shashwath T.R. and Sharan Srinivas and headquartered in Chennai, Mindgrove began in a small room with the ambitious mission to design secure, production-grade chips entirely in India. Closely associated with IIT Madras and incubated at the IIT Madras Incubation Cell, the company exemplifies how academic excellence is translating into commercial innovation.
Mindgrove developed India’s first commercial-grade high-performance microcontroller system-on-chip, focusing on IoT and embedded systems applications. The Secure IoT chip, launched in May 2024, targets smart connected devices including watches, meters, locks, access control units, printers, and point-of-sale machines. Built on RISC-V architecture using the indigenous SHAKTI cores developed at IIT Madras, the chip represents a milestone in India’s journey toward semiconductor self-reliance. The company is also developing Vision SoC, targeting high-performance edge computing and vision processing applications including CCTV cameras, dashcams, advanced driver assistance systems, and smart televisions.
In December 2024, Mindgrove raised eight million dollars in Series A funding co-led by rocketship.vc and Speciale Invest, following an earlier seed round of 2.325 million dollars. The company has expanded from its initial small team to 38 members and plans continued growth to support its product roadmap and market expansion. Mindgrove’s chips use the 28-nanometer technology node, which the company refers to as the “Goldilocks Node” for its optimal balance of performance, power efficiency, and manufacturing cost.
The company’s focus on security-enhanced microcontrollers addresses a critical gap in India’s electronics ecosystem. By developing chips optimized for Indian market requirements while maintaining global competitiveness, Mindgrove is helping establish India’s presence in the fabless semiconductor space. The company’s long-term vision includes expanding into automotive applications, particularly battery management systems, where indigenous chip design could reduce dependence on imported components while enabling customization for India-specific requirements.
9. InCore Semiconductors
InCore Semiconductors, founded in 2018 and headquartered at the IIT Madras Research Park, is pioneering RISC-V-based processor design in India. The founding team played a pivotal role in developing India’s first indigenous microprocessor through the SHAKTI project at IIT Madras, bringing that expertise to the commercial domain. InCore focuses on creating highly optimized, customizable processor intellectual property for diverse embedded applications.
InCore’s processor cores include Azurite, targeting low-power applications like smart meters and smart cards, and Calcite, capable of running Linux for higher-performance applications including wearables, point-of-sale terminals, and networking systems. The company’s recent breakthrough came with the launch of its SoC Generator platform, which dramatically reduces front-end chip design time from months to under ten minutes through deterministic automation. The platform automatically generates register transfer level code, integrates intellectual property blocks, and configures system architectures, democratizing chip design for a broader range of companies.
In 2023, InCore raised three million dollars in seed funding from Peak XV Partners (formerly Sequoia Capital India), validating the commercial viability of its technology and business model. The company brings a high degree of automation to processor and system-on-chip design, addressing a critical bottleneck in the semiconductor industry where design complexity and time-to-market pressures are constantly increasing. InCore’s solutions enable companies to create custom silicon optimized for specific workloads without requiring extensive semiconductor design expertise.
InCore’s vision extends beyond processor design to enabling India’s broader semiconductor ecosystem. By providing accessible, flexible RISC-V-based solutions, the company supports the development of indigenous electronics products across industries. The company is actively piloting its intellectual property offerings with companies globally, aiming to establish revenue streams while continuing to advance its technology. InCore’s work exemplifies how Indian startups are not merely adapting foreign technologies but creating fundamental innovations in processor architecture and design automation that can compete globally.
10. Morphing Machines
Morphing Machines, launched in 2006 through the Technology Entrepreneurship initiative at the Indian Institute of Science in Bengaluru, represents a unique approach to embedded processor design. Founded by Deepak Shapeti and Dr. Ranjani Narayan, this bootstrapped company has developed REDEFINE, a runtime reconfigurable many-core processor that combines FPGA-like flexibility with ASIC-level performance.
The REDEFINE platform addresses a fundamental challenge in embedded computing: the need to handle diverse, demanding, and unpredictable workloads efficiently. Traditional processors optimize for specific types of computations, requiring designers to choose between general-purpose flexibility and specialized performance. REDEFINE’s runtime reconfigurable architecture can dynamically switch between CPU and GPU capacity cores, adapting to workload requirements on the fly. This makes it particularly valuable for applications with variable computational demands including data centers handling mixed workloads, artificial intelligence and machine learning applications, telecommunications infrastructure preparing for 6G networks, advanced driver assistance systems, and enterprise computing.
Morphing Machines is currently working toward completing its first proof-of-silicon chip, representing a critical milestone in transitioning from concept to commercial product. The company targets global markets including the United States and Europe, focusing on consumer cloud data centers and hyperscalers. By offering domain-specific architectures that can accelerate applications across avionics, automotive, and telecommunications while maintaining adaptability, Morphing Machines addresses the growing challenge of computational heterogeneity.
The company’s technology represents deep innovation in processor microarchitecture, a field where Indian companies have historically focused more on implementation than fundamental invention. Morphing Machines demonstrates that with strong academic foundations and sustained research investment, Indian companies can develop novel processor architectures competitive with global technology leaders. The company’s progress from research concept to commercial product, while remaining bootstrapped, reflects both the technical merit of its approach and the improving ecosystem support for deep-tech ventures in India.
Industry Trends and Future Outlook
The embedded systems industry in India is experiencing several transformative trends as we progress through 2026. The shift toward software-defined systems is fundamentally changing how embedded products are architected, with greater emphasis on software flexibility, over-the-air updates, and cloud connectivity. This trend is particularly pronounced in automotive applications but extending across industrial machinery, medical devices, and consumer electronics.
Artificial intelligence integration into embedded systems represents another major trend, with edge AI enabling sophisticated decision-making in resource-constrained environments. Indian companies are developing expertise in optimizing machine learning models for embedded processors, creating hardware accelerators for AI workloads, and architecting systems that balance cloud-based and edge-based intelligence. The convergence of IoT and AI is creating new product categories where embedded systems continuously learn from operational data and adapt their behavior accordingly.
The semiconductor ecosystem in India has received unprecedented government support through initiatives including the India Semiconductor Mission, Design Linked Incentive Scheme, and Chips to Startup Programme. These programs have catalyzed both established companies and startups to pursue chip design and manufacturing, with over 22 startups receiving support totaling more than 234 crore rupees in government funding. This has attracted an additional 380 crore rupees in private venture capital, demonstrating investor confidence in India’s semiconductor capabilities. Companies like Mindgrove, InCore, and Morphing Machines represent the first wave of this renewed focus on indigenous chip design.
The automotive sector’s transformation toward electric vehicles, autonomous driving, and connected services is creating enormous opportunities for embedded systems companies in India. Automotive electronics already represent a significant portion of vehicle value, and this percentage continues to increase with each model year. Indian companies are well-positioned to capture this growth through both engineering services for global manufacturers and development of indigenous automotive electronics for the domestic market.
Regulatory compliance and safety certification are becoming increasingly critical as embedded systems are deployed in safety-critical applications. Companies with expertise in functional safety standards including ISO 26262 for automotive and IEC 61508 for industrial applications have competitive advantages. The maturation of regulatory frameworks in India, including standards for connected vehicles and medical devices, is encouraging more rigorous development practices and creating opportunities for companies specializing in compliance and certification support.
The talent landscape for embedded systems in India continues to evolve, with universities and industry collaborating to develop curricula aligned with industry needs. The emergence of specialized training programs covering modern embedded development practices, new processor architectures like RISC-V, and domain-specific skills like automotive software development is helping address skill gaps. Companies are investing heavily in upskilling existing engineers and attracting talent from adjacent fields including application software development and data science.
Conclusion
India’s embedded systems industry in 2026 represents a dynamic ecosystem spanning global technology leaders, specialized product engineering firms, and innovative startups pushing the boundaries of processor design and chip innovation. From Tata Elxsi’s comprehensive design and technology services to Mindgrove’s indigenous chip development, these companies exemplify the breadth and depth of embedded systems expertise available in India.
The convergence of government support through semiconductor missions and incentive schemes, growing domestic market opportunities in automotive electrification and IoT adoption, and India’s established strength in software engineering creates a powerful foundation for continued growth. The embedded systems companies profiled here are not merely executing designs conceived elsewhere but increasingly developing intellectual property, creating novel architectures, and establishing India as a center for embedded innovation rather than just implementation.
For businesses seeking embedded systems expertise, India offers access to world-class talent, cost-effective development, and increasingly sophisticated product development capabilities. For engineers and entrepreneurs, the embedded systems field presents opportunities to work on cutting-edge technologies addressing global challenges in mobility, automation, healthcare, and communications. As embedded systems become more intelligent, connected, and capable, the Indian companies and startups leading this transformation are positioned to shape the future of technology both within India and globally.

The journey from service provider to product innovator is well underway, with Indian companies filing patents, developing proprietary platforms, and establishing themselves as thought leaders in embedded systems architecture and design. The next phase of growth will likely see greater focus on vertical integration, with companies developing not just software but also optimized hardware platforms and complete embedded solutions. The success of semiconductor startups in achieving funding milestones and technical breakthroughs suggests that India’s embedded systems ecosystem is maturing rapidly, setting the stage for global leadership in intelligent, connected embedded systems for the decades ahead.



