Manufacturing tech startup SwitchOn raises $8M in pre-Series B funding round led by IvyCap Ventures

Bengaluru-based SwitchOn, a startup developing AI-based quality inspection systems for manufacturers, has raised $8 million (~Rs 78 crore), in a pre-Series B funding. The round was led by IvyCap Ventures, with participation from SIG Tattva and Trifecta Capital.

The capital will be used to accelerate SwitchOn's international expansion and strengthen research and development in next-generation physical AI. The startup will also use the funds to expand its sales and go-to-market capabilities across key manufacturing sectors worldwide.

Physical AI involves AI systems that interact directly with machines and industrial equipment rather than operating only through software.

Founded by Aniruddha Banerjee and Avra Banerjee, SwitchOn integrates AI into manufacturing machines to automate product quality inspection. Its flagship platform, DeepInspect, uses computer vision, which enables computers to analyse images and identify surface defects with high precision on fast-moving production lines.

The company claims its technology can inspect more than 1,200 products a minute, achieve detection accuracy above 99%, and reduce quality-related costs by up to half.

Since deploying its first production systems in 2021, SwitchOn says, it has expanded to more than 170 production lines across over 60 manufacturing facilities on four continents. Its customers include Unilever, Bosch, Maruti Suzuki, and ALPA, spanning consumer goods, automotive, electronics and pharmaceutical manufacturing.

Explaining the company’s long-term vision, co-founder Aniruddha Banerjee said, “Manufacturing is the backbone of the global economy, yet quality inspection has remained stubbornly manual for decades.”

The investors see the company addressing an increasingly important industrial challenge.

Vikram Gupta, Founder and Managing Partner at IvyCap Ventures, said SwitchOn has built a globally relevant Physical AI platform with a growing international customer base, adding that it is well placed to lead the next phase of industrial AI innovation.

SwitchOn’s latest round comes as industrial AI and smart manufacturing attract increasing investor interest.

Manufacturers worldwide are deploying AI-powered vision systems to improve quality, reduce waste, and address labour shortages, particularly in industries where manual inspection is time-consuming and prone to errors. Governments are also encouraging advanced manufacturing through initiatives that promote automation and digital technologies. This aligns with the government’s Make in India programme and the Production Linked Incentive schemes, which aim to strengthen domestic manufacturing competitiveness.

More recently, the Union Cabinet approved the second phase of the India Semiconductor Mission alongside a revamped mobile phone manufacturing scheme, further reinforcing the country’s push to build advanced manufacturing capabilities.

There is sustained investor interest in manufacturing tech startups developing automation and advanced industrial technologies in India. Recent deals in the sector include the $28.5 million fundraise by Ethereal Machines and the $1.12 million funding in robotics startup Integra Robotics.