Velmenni Raises Rs 30 Crore Funding to Scale Li-Fi and Free Space Optics for 5G, Defence Markets

Velmenni, the Hyderabad-headquartered deeptech startup that builds light-based wireless communication systems, has secured Rs 30 crore — roughly $3.3 million — in a pre-Series A funding round. The round was led by pi Ventures, a fund known for backing early-stage deep-science companies, with MountTech Growth Fund–Kavachh and Apekso joining as co-investors.

The fresh capital marks a pivotal moment for Velmenni. Founded in 2014 by Deepak Solanki, the company has spent the better part of a decade developing patented Free Space Optics (FSO) and Light Fidelity (Li-Fi) technology that transmits data using light beams and lasers instead of traditional fibre cables or radio waves. Now, with this pre-Series A funding in hand, the startup is preparing to scale those innovations from proven pilots into full commercial deployments across India and overseas.

What Makes Velmenni’s Light-Based Wireless Technology Different?

At its core, Velmenni offers high-capacity backhaul and last-mile connectivity solutions designed for 4G-LTE, 5G, and FTTx broadband networks. The startup’s optical wireless systems use laser-based links to move data at speeds exceeding 10 Gbps over distances stretching up to 25 kilometres.

That matters because traditional fibre rollouts are expensive and painfully slow. Cable trenching tears up roads, spectrum licensing drains budgets, and millimetre-wave signals struggle with interference in congested environments. Velmenni’s Free Space Optics approach sidesteps all three problems. No trenching. No spectrum fees. No radio frequency congestion.

Solanki framed the opportunity in practical terms: “Velmenni aims to capture a sweet spot where fibre is too slow to deploy, RF is too interference-prone to trust, and licensed-band communication is too expensive to justify shorter distances.”

The startup also highlights that the Li-Fi spectrum is thousands of times broader than radio frequency spectrum, which translates directly into higher data density, faster speeds, and stronger security against signal interference.

How Velmenni Plans to Use the Funding

The Rs 30 crore raised in this round will fuel three priorities. First, Velmenni intends to accelerate the commercialisation of its FSO and Li-Fi product lines beyond pilot-stage deployments. Second, the startup is building customised communication solutions for defence and enterprise clients — segments where secure, interference-proof connectivity is not a luxury but a hard requirement. Third, the company plans to scale its operations into international markets, building on existing traction in Southeast Asia and the United States.

This funding also reflects a broader pattern of investor confidence in India’s deeptech startup ecosystem, where capital is increasingly flowing toward companies solving infrastructure-grade problems rather than chasing consumer app trends. The round comes alongside a wave of fresh fundraises across sectors — Pronto’s $25 million Series B in logistics tech, Mosaic Wellness raising Rs 200 crore from 360ONE Asset, and OptoML’s $1.8 million pre-Series A — signalling that investors are actively backing startups with clear paths to commercial traction.

Defence Contracts and 50+ Global Deployments

Velmenni is not pitching theory. The startup claims more than 50 deployments completed across India, Southeast Asia, and with Tier-1 mobile network operators in the United States. That operational track record distinguishes it from most early-stage hardware startups still stuck in prototype loops.

In India, the company deployed what it describes as the country’s first commercial carrier-grade FSO backhaul link supporting a private 5G network at a GMR thermal power plant in Odisha. Velmenni says the link has maintained 99.999% availability for over 18 months — through tropical heat, monsoon rains, and fog.

The defence sector has taken notice. Velmenni secured a multi-million-dollar contract from India’s defence establishment to deploy its specialised FSO solution across Indian submarines, addressing harbour connectivity challenges where conventional fibre and RF technologies struggle.

On the regulatory front, the startup has obtained CE certification for European markets and expects FCC clearance for the US. It also holds an international patent portfolio alongside grants from India’s Department of Telecommunications and the Defence Ministry.

Why Investors Are Betting on Optical Wireless Connectivity

Shubham Sandeep, Partner at pi Ventures, pointed to Velmenni’s rare ability to move from lab innovation to real-world revenue. “They have demonstrated the ability to translate a new technology into real-world commercial deployments,” Sandeep said. “We believe Velmenni is well-positioned to scale optical wireless communication globally and meet growing worldwide demand for secure, high-capacity connectivity.”

The timing aligns with India’s explosive 5G growth. Since commercial launch in 2022, the country has built the world’s second-largest 5G subscriber base — crossing 400 million users by early 2026 across nearly 4.7 lakh base stations. That rapid expansion creates enormous demand for backhaul infrastructure, and Velmenni’s light-based wireless systems offer telecom providers a faster, cheaper path to fill connectivity gaps that fibre alone cannot address at scale.

What Comes Next for Velmenni

With Rs 30 crore in fresh funding, regulatory clearances progressing, and a growing list of defence and telecom contracts, Velmenni is positioning itself at the front of the optical wireless communication market. The next twelve months will test whether the startup can convert its technical edge and pilot success into sustained commercial scale — both in India and across global markets hungry for secure, high-capacity connectivity alternatives.

Velmenni’s pre-Series A round signals growing investor appetite for deeptech infrastructure startups solving hard connectivity problems. For more coverage of India’s most promising startup funding rounds and emerging technology trends visit KnowStartup.

Author

Sachin

Sachin Sidharth is a Digital Marketing professional with a master’s degree in Digital Marketing from Coventry University, UK. He has 10+ years of blogging and online marketing experience. He currently heads Digital Acquisition for a leading London-based Fintech firm. At KnowStartup.com He focuses on writing Digital Marketing guides and manages...

Sachin Sidharth is a Digital Marketing professional with a master’s degree in Digital Marketing from Coventry University, UK. He has 10+ years of blogging and online marketing experience. He currently heads Digital Acquisition for a leading London-based Fintech firm. At KnowStartup.com He focuses on writing Digital Marketing guides and manages KnowStartup's Digital Agency rankings of firms across multiple cities in India. You can reach him on Linkedin.

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