Bengaluru-based deep-tech startup Nexstem raises $3.5 million led by InfoEdge, others

Nexstem, a Bengaluru-based deeptech startup developing cutting-edge non-invasive Brain Computer Interface (BCI) solutions, recently raised $3.5 million in a latest funding round. 

The funding was led by prominent investors, such as InfoEdge, Zupee, Smile Group and Nikhil Kamath & Abhijeet Pai’s Gruhas.

The startup plans to use the raised capital to scale its latest product ecosystem and expand its IP portfolio, leading to disruption in the neurotech sector.

What does Nexstem do?

Founded in 2020 by Siddhant Dangi and Deepansh, Nexstem’s breakthrough product suite for BCI - Instinct leverages a unique AI-powered onboard compute module that supports analysis for all kinds of biosignals from the human body.

According to the startup, BCI technology essentially enables direct communication between the human brain and external devices, a field once confined to science fiction but now rapidly advancing toward real-world applications.

From restoring lost motor functions to augmenting cognitive capabilities, BCI has the potential to redefine human-machine interactions in ways previously thought impossible, the release notes.

Scaling operations to meet growing demand

The latest investment will enable Nexstem to scale its operations to meet growing demand and deliver its highly customisable product line.

By breaking down the cost barriers traditionally associated with BCI technology, the startup democratises access to innovations such as EEG (electroencephalography). The funds will also support global expansion, particularly into American and European markets, it said.

“With this funding, we are excited to advance the deployment of our BCI ecosystem, which we believe will redefine how technology can address real-world challenges across diverse sectors," said Dangi.

"Our focus is on harnessing complex biosignal data from the human body, which will help us create better products, and highly customised services and understand humans better than ever. By addressing these challenges, we are opening doors to applications once imagined in sci-fi, such as longevity and telepathy. Our approach as an early platform player enables us to help others realise impactful use cases in neurotechnology, carefully balancing innovation with practical applications," he added.

Nexstem highlights BCI's Market potential

The brain-computer interface (BCI) market is set for impressive growth, with Morgan Stanley’s recent report valuing the U.S. market at $400 billion.

Over the next three years, Nexstem plans to launch the highly anticipated Nexstem Coin, EXG modules, and tACS technology, which will complement its current product and IP lineup.

Notably, the deeptech startup is also focused on obtaining regional and compliance certifications and expanding into both defense and consumer markets through a strong distribution network.

Investors comment

Vibhore Sharma, Tech Investments, InfoEdge, said, “We believe that BCI would emerge as an extremely transformative technology in the next decade or so and we are very excited to back the Nexstem team in their endeavour in this space. In an industry characterised by lengthy development cycles and substantial investment, Nexstem's progress has been fast, frugal and exceptional.”

Abhijeet Pai, Co-Founder, Gruhas, added, “At Gruhas, we are committed to backing innovative technologies that redefine the way we interact with and understand the world. Nexstem’s advancements in BCI are at the frontier of what’s possible in neurotechnology, with the potential to unlock new dimensions of human capability. We are thrilled to support Nexstem’s journey as it expands its ecosystem and makes cutting-edge neurotech accessible to diverse industries."