India’s artificial intelligence startup ecosystem has received another significant signal from the venture capital industry.
Mettle Capital, the venture capital firm founded by former Peak XV Partners executives Ashish Agrawal, Ishaan Mittal and Tejeshwi Sharma, is teaming up with Peak XV Partners to invest in Empirical Machines, an AI startup founded by former OpenAI researcher Shyamal Hitesh Anadkat.
The investment round has reportedly been increased to $20 million, up from the previously reported $15 million. Bessemer Venture Partners, which was earlier in discussions to participate, is reportedly no longer part of the round.
The deal is particularly interesting because it represents Mettle Capital’s maiden investment and brings its founders back into a transaction with their former firm, Peak XV.
Who Is Behind Empirical Machines?
Empirical Machines was founded by Shyamal Hitesh Anadkat, an Indian-origin researcher who spent nearly four years at OpenAI.
Anadkat joined OpenAI in 2022 and worked in Applied AI, focusing on the challenge of turning AI models into reliable products that can perform real-world tasks. He was also associated with OpenAI’s startup-focused activities and served as a venture scout at Andreessen Horowitz.
After leaving OpenAI, Anadkat returned to India and started Empirical Machines.
Unlike many AI startups that focus primarily on chatbots, enterprise software or AI agents, Empirical Machines is working on a more ambitious area: using AI to accelerate scientific discovery.
Its work includes applications related to chemical compounds, placing the company at the intersection of artificial intelligence, chemistry and scientific research.
Why the $20 Million Round Matters
The size of the round is important, but the bigger story is what investors are choosing to fund.
For several years, India’s AI startup ecosystem was dominated by companies building applications on top of large foundation models developed elsewhere.
That model can produce valuable businesses, but investors have increasingly started asking a tougher question:
What is the technological advantage that makes an AI company difficult to replicate?
Empirical Machines represents a different approach.
Instead of simply creating another AI-powered productivity application, the startup is attempting to apply AI to scientific problems where proprietary research, specialised models, domain expertise and potentially unique datasets can create stronger technological advantages.
That makes the company interesting to investors looking for the next generation of Indian deep-tech businesses.
Mettle Capital’s First Investment
The deal also carries significance for Mettle Capital itself.
The fund was established in May 2026 by Ashish Agrawal, Ishaan Mittal and Tejeshwi Sharma after they left Peak XV Partners.
The three had spent around a decade working together and were senior investors at Peak XV. Their departure followed disagreements around economics, including issues involving carried interest and payouts linked to Peak XV’s investment in Groww.
That makes the Empirical Machines investment unusual.
Mettle Capital and Peak XV were once part of the same organisation, and now the two firms are investing in the same startup.
In venture capital, however, investment decisions are ultimately about finding promising companies. The deal demonstrates that professional relationships can evolve even when investors move to different funds.
From $15 Million to $20 Million
The funding discussions around Empirical Machines have moved quickly.
Earlier reports suggested that the company was looking to raise approximately $15 million from Peak XV and Bessemer Venture Partners at a valuation of around $80 million.
The latest report indicates that the round has expanded to approximately $20 million, while the investor mix has changed. Bessemer is no longer expected to participate, while Mettle Capital has joined Peak XV. The company is still reportedly being valued at around $80 million.
An increase in the size of the round can indicate stronger investor conviction or a larger capital requirement as the company develops its technology.
For a scientific AI startup, capital requirements can be significantly different from those of a conventional software startup because research, specialised infrastructure, talent and experimentation can require substantial investment.
India’s AI Funding Environment Is Changing
The Empirical Machines deal is arriving at a time when investor interest in Indian AI startups appears to be accelerating.
Several AI companies have recently been involved in significant fundraising activity.
Moneycontrol has reported funding discussions involving companies such as MStack AI and Simplismart, while workplace AI company Ema recently raised $77 million at an $800 million valuation.
Meanwhile, companies including Sarvam AI and Emergent have announced much larger funding rounds, reflecting increasing investor appetite for Indian AI businesses.
This suggests that investors are becoming more comfortable putting substantial amounts of capital into India’s AI ecosystem.
But there is an important distinction.
The next phase of AI investment may not simply be about who can build an AI application fastest.
It could increasingly be about who can build defensible technology around AI.
AI for Science Could Become a Major Opportunity
One of the most interesting aspects of Empirical Machines is its focus on scientific discovery.
AI has the potential to dramatically reduce the time required to explore large numbers of possibilities in areas such as chemistry, materials science and drug discovery.
Traditionally, scientists may need to formulate hypotheses, run experiments, analyse results and repeat the process many times.
AI systems can potentially assist with parts of this cycle by identifying patterns, suggesting compounds, analysing experimental results and prioritising promising directions.
The real opportunity emerges when AI becomes part of the scientific experimentation loop, rather than simply functioning as a chatbot.
That is a much harder technical problem—but potentially a much larger business opportunity.
What Investors Are Really Betting On
The Empirical Machines deal can be viewed as more than a funding announcement.
It represents a bet on three trends simultaneously.
First, India can produce globally competitive AI talent.
Second, that talent can build companies targeting technically difficult problems from India.
Third, venture capital investors are increasingly willing to finance these companies at an early stage.
Anadkat’s background at OpenAI gives Empirical Machines access to experience from one of the world’s most influential AI organisations. The startup also reportedly has backing from prominent individuals and advisors associated with organisations including OpenAI and Google DeepMind.
The Bigger Picture
India’s AI story is gradually moving beyond outsourcing and software services.
The emergence of companies working on foundation models, AI infrastructure, AI agents and scientific AI suggests that the country’s technology ecosystem is attempting to move higher up the AI value chain.
The Empirical Machines investment is therefore worth watching closely.
If the company succeeds, its impact could extend beyond the startup itself. Successful AI-for-science companies could demonstrate that Indian founders can build deep-tech businesses capable of attracting global capital and solving problems that are relevant internationally.
For Mettle Capital, the investment is equally important because it establishes its first major portfolio bet.
And for Peak XV, continuing to invest in technically ambitious AI startups reinforces its position in one of the most competitive areas of venture capital.
Final Takeaway
The $20 million Empirical Machines round is not just another AI funding announcement.
It highlights a broader shift in India’s startup ecosystem—from AI applications built around existing models toward companies attempting to solve deeper scientific and technological problems.
With former OpenAI talent at the helm, Peak XV and Mettle Capital backing the company, and growing investor interest in Indian AI startups, Empirical Machines could become one of the more interesting AI companies to watch as India’s next generation of deep-tech businesses takes shape.
The bigger question now is not whether India can participate in the global AI revolution.
It is whether Indian startups can build the technology that helps define it.