In a chat with CNBC-TV18, Mindgrove’s founders, Sashwath TR and Sharan Jagathrakshakan said they built the low-cost chip by marrying the computing ability of a microprocessor and the connecting ability of a microcontroller.

“Five years ago, you had a washing machine and typically, the washing machine may have had a very basic 1MHz microcontroller inside it. But now you’re asking that washing machine to connect to WiFi and give you status updates, and you’re trying to control it from wherever you are, which requires more processing power,” said the start-up’s CEO Shashwath.

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“Secure IoT is device which integrates these two worlds — the microcontroller and microprocessor — and also adds a layer of security, because now you’re talking about connected smart devices,” he added.

The key differentiator that Secure IoT brings to the table is that the chip is truly Indian, at its core. What this means is a wide variety of use-cases, more amenable to the local market, and at a more attractive price proposition. Mindgrove also says the chip is built for Indian climatic conditions, and is as sturdy as can get.

In fact, that is the chip’s key differentiator too — according to the start-up, Secure IoT is not only a chip built for India, but for a rugged, rural Indian market that is quickly adopting smart, connected devices. The fact that it is 30 percent cheaper than competition is a nice bonus.

“Semiconductor design is inherently international, and all the standards and certifications are done worldwide across chips,” said Sharan, who serves as CTO, at Mindgrove, “If you go look at these chips, they will have a temperature range — 0 degrees to 85 degrees, and smartphones typically come within that range.”

He added: “You can’t do that in India because of the way our geographies are. You have to design to the temperature range that the geography of India is set up for. And that’s what we’ve done.

Both founders say that what truly makes the chip unique is a last-mile customisation element that is seeing the start-up speak to device designers and strike a balance between including important chip features, at effective costing.

“One of our strategies has been going to high-volume customers first and they will need final samples of the chip to confirm everything,” said Sharan, “What is currently happening is that we are in the process of giving them those samples and getting everything done, because they have given us expectations and in-house tests have passed.”

Once customers finish testing, the company says it will be ready to put ink on paper and begin production. “The idea here is to take the chip into full volume production by the end of the year,” said Shashwath, “As we sign these contracts, we will have the visibility to place that order on the foundry.”

However, the fact remains there is still a long way to go before the right kind of fabrication infrastructure is set up within the country. So, for the moment, Secure IoT will be made in Taiwan — at least until Micron’s fab plant in Gujarat takes form and shape.

“The chip is currently not fabricated in India because there are no foundries in India, yet,” said Sharan, “We know that a fabrication plant has just started in Gujarat and we are looking forward to that. But we are currently manufacturing outside India.” He added: “However, the finishing and assembly will be done within the geographical boundaries of India.”

Mindgrove raised 2.3 million in a seed round last year, led by Peak XV Partners. The start-up, still in a pre-revenue stage, says it’s in talks with new investors, is seeing renewed interest, and may well raise another round before the year-end. However, it’s tight-lipped about just how much it plans to raise.

“The principle focus is sell, sell more, and sell even more,” said Sharan, “What we may or may not raise will directly depend on what we need to do to enable us to sell and sell more. If we find an opportunity window that we need to quickly exploit and get into the market, then we will raise appropriately to do that.”

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