IoT devices are becoming smarter, and AI is now running directly on them. But what challenges and clever solutions arise when building these devices from scratch? Nidhi Agarwal and Saba Aafreen from EFY talk with Dr Sanjay Ahuja of Cionlabs to explore the technology, strategy, and vision behind these smart IoT solutions.
Q. What does Cionlabs do? How do you position the company, and why did you choose IoT?
A. We are a startup and a design house, started five years ago after nearly 25 years in the industry, including senior corporate roles. Motivated by the Make in India initiative, we wanted to build technology locally and chose IoT, even though it was seen as a saturated space. The market is largely dominated by Chinese supply chains and black-box IoT solutions, which are non-customisable. To compete, we build from the ground up, designing key components in-house, modules, power systems, and supporting hardware, rather than relying on imports.
While still design-led, we are evolving toward full Make in India IoT capability, with a manufacturing facility planned in the Jigani Industrial Area near Electronic City. Unlike one-size-fits-all solutions, we provide fully customizable products, giving customers ownership from design to deployment. Our solutions address local challenges such as varied environments, network congestion, and higher noise levels on shop floors. We also partner with chip manufacturers, combining their technologies with our designs to make cost-effective, feature-rich modules. With patents in progress and partners like Beken, we leverage advancing technologies such as Wi-Fi 6, Bluetooth 5.4, built-in Ethernet, CAN interfaces, and integrated NPUs for AI to build solutions tailored for the domestic market.
Q. How do you differentiate yourself from other IoT design houses in the market?
A. Many design houses operate in IoT, but our key differentiator is the breadth of our technology stack. We work across the full chain, from IoT modules to complete white-label solutions. Our direct partnerships with chip manufacturers give us early access to new products and allow collaboration at the silicon and SDK level based on customer needs, including customised SDK support when required. At the same time, our engineering team builds its own innovations, such as the hybrid mesh architecture we discussed, for which we are pursuing patents. Instead of offering a closed black-box solution, we give customers full ownership of their product, hardware, firmware, cloud, and mobile apps, positioning ourselves as a full-stack technology partner.
Q. What problem is Cionlabs solving? Can you explain it with an example?
A. In a recent co-design project with a smart home client, we improved system performance by working at the chipset level. Through our partnerships with silicon manufacturers such as Beken, we gain early access to their products, SDKs, and technical support. Using the BK7238 chipset, we implemented a hybrid mesh approach that delivered nearly 30% better range. This shows how we go beyond just connecting components—we design the complete system architecture. We focus on solving domestic challenges such as network congestion and unreliable connectivity, and we have also developed features like offline voice recognition and AI-based capabilities to ensure the product works reliably in real home environments.
Q. How did Cionlabs achieve the 30% performance improvement with hybrid mesh technology, and what were the key challenges in developing it?
A. Our hybrid mesh combines BLE mesh, commonly used in IoT lighting, with Wi-Fi mesh to create a faster, more flexible system. Traditional BLE mesh is limited in range and speed, but our model lets each module communicate with others, extending range beyond the router and overcoming connection limits. This allows configuration of over 100 devices in 5–10 seconds, compared to 30–40 seconds with standard Wi-Fi. The 30% improvement comes from internal benchmarking against competitor products, measuring configuration speed and device connectivity. While not an industry standard, these tests show significantly faster setup and broader coverage, and we are pursuing a patent for this innovation.
A major challenge was ensuring reliable connectivity while addressing data privacy concerns. Many users worry about data being sent to cloud servers outside India. Our hybrid mesh solves this by enabling devices to communicate locally, so appliances can be controlled without an internet or a dedicated gateway. Similar to Matter, this local interaction ensures fast, reliable, and privacy-conscious operation.
Q. Can you talk about Cionlabs’ product portfolio and module strategy?
A. Our product journey began with home automation, creating a wide range of products beyond modules, smart touch switches, touch panels, smart lighting, video doorbells, smart sockets, and other connected devices. Over time, we expanded into AI-driven segments such as AI glasses and AI-enabled toys, while also entering industrial IoT with solutions for EV and solar chargers. On the module side, we design for a variety of applications: some modules support gaming keyboards and mice, others handle Bluetooth data transfer for devices such as solar inverters or EV chargers, and some enable video streaming or access control with facial recognition. While modules serve multiple applications, home automation and broader IoT remain the core of our portfolio, reflecting our strategy of combining versatile module design with strong hardware development.
Q. Who are your target customers?
A. Since our main product line is IoT modules, we currently provide white-label solutions for the home automation industry. From this year onward, we are targeting industrial IoT as well as niche segments such as AI-powered toys and AI glasses. These are the key market segments we are focusing on and building our offerings for.
Q. Do you primarily sell your own modules, or do you also undertake custom development for clients?
A. In addition to our own white-label modules, we also support customers who want to build solutions using Beken chipsets. As the official technical support partner for Beken in India, we work with a wide range of clients by providing technical guidance and development support. In some cases, customers adopt our existing modules, while in others we collaborate with them to design solutions tailored to their specific requirements. So our role includes both supplying our own products and supporting custom development around the Beken ecosystem.
Q. Do you build hardware from scratch or use off-the-shelf modules, and how are your modules designed and manufactured?
A. Our approach depends on the customer’s needs. If a client has a preferred silicon partner, we design around that platform. For example, in gaming mice, we have used chipsets from Nordic, Beken, and other partners. However, Beken remains our preferred partner due to their strong Wi-Fi and Bluetooth capabilities, and we have worked closely with them for the past four years, giving us deep familiarity with their roadmap.
All our modules are fully designed in-house. Using Beken chipsets, we handle every aspect, from PCB layout to RF antenna calibration and chip tuning, ensuring full control over performance and quality. Manufacturing follows a hybrid model: PCBA assembly is done through partners in India and China, with international partners supporting high-volume projects and Indian partners enabling faster turnaround and supporting our Make in India strategy. Meanwhile, our internal teams manage the full design and R&D process, and we are now establishing our own manufacturing unit in Bengaluru to bring more production in-house.
Q. Can you walk us through your in-house engineering team?
A. Our engineering team is structured across three main areas: mobile application development, cloud backend, and firmware. A large part of the team focuses on firmware, and most of our engineers are trained as full-stack engineers. This means they can handle the entire development cycle, from schematic design and PCB layout to firmware development and system integration. The goal is to build technically strong engineers who can independently manage different aspects of product development.
Q. What challenges do you face when moving from prototyping to mass production?
A. This is a common challenge in the hardware industry. Unlike software, where changes can be made by updating the code and releasing a new version, hardware follows a fixed development cycle. Any design change requires going through the entire process again, including PCB design, fabrication, assembly, and full testing.
To manage this, we have built strong in-house capabilities for PCBA and prototyping. We have pick-and-place machines and the necessary testing equipment in our facility. This allows us to significantly reduce development timelines. Whenever a design change is required, we can quickly iterate and validate it internally without relying on external manufacturing partners, thereby greatly improving our turnaround time.
Q. How do you manage supply chain risks and component sourcing?
A. We follow a hybrid and distributed supply chain model. Instead of relying on a single geography, we source components from multiple locations, including India, Taiwan, and China. For certain projects, we also prioritise domestic suppliers. This multi-location approach helps us diversify sourcing and reduce supply chain risks while maintaining flexibility in procurement.
Q. What is your current production capacity, and how do you plan to scale it?
A. Our production capacity primarily depends on the capabilities of our PCBA manufacturing partners. Since we follow a hybrid manufacturing model with multiple partners, capacity is not a fixed limitation for us. We continue to expand our partner network, enabling us to scale production in response to demand. As a result, both capacity and expansion are flexible, and we can increase output whenever required.
Q. Are you also integrating technologies such as AI and Edge into your IoT modules?
A. Our primary focus currently is on Edge AI. Using chipsets such as BK7258 and BK7259, which include built-in NPUs, we run AI models directly on the device, enabling edge-based processing. This enables features such as offline voice control without requiring an internet connection. In projects like AI glasses and AI powered toys, we also integrate with LLMs to create interactive experiences using camera and voice inputs. For example, children can play gesture-based games such as rock, paper, scissors with the device, with all processing handled locally. We also use edge AI for applications such as facial recognition in access control systems.
Q. What challenges have you faced while integrating AI into hardware devices?
A. Earlier, most of our products were traditional IoT devices, but our newer designs, such as AI glasses, AI toys, and some home automation solutions, are now AI-enabled. The main challenge in integrating AI with hardware is processing power, especially for edge-based applications. However, newer chipsets such as the Beken BK7259 include built-in NPUs, which help address these limitations by enabling on-device AI capabilities. This enables us to support functions such as facial recognition and other edge-intelligence features. Combined with integrations with LLM-based systems, this approach helps us build an ecosystem for affordable AI-driven products such as smart toys, robotics solutions, and AI glasses.
Q. Are you planning to integrate 5G or satellite communication into your IoT solutions?
A. Currently, our primary focus is on Wi Fi and Bluetooth-based connectivity, which aligns with our core expertise. While some of our solutions, such as fleet management devices, use GNSS capabilities through partner chipsets, we have not developed dedicated 4G or 5G IoT modules. For cellular connectivity like 4G or 5G, we typically rely on existing market solutions, while concentrating our own design and development efforts on Wi Fi and Bluetooth technologies.
Q. How do you test your devices for reliability, especially in real-world environments?
A. We follow a structured testing process for all our designs. For IoT solutions such as home automation devices, we use dedicated test jigs to validate reliability and performance under different operating conditions. For our modules, we also conduct certification and compliance testing through third-party NABL-accredited laboratories. This includes regulatory approvals such as WPC and other required certifications to ensure the devices meet reliability and performance standards.
Q. Are your modules compliant with global security standards, and how do you address data privacy?
A. Security is a critical consideration for IoT devices, and many of the chipsets we use are designed with built-in security features and global compliance standards. For example, chipsets such as the Beken BK7236 and BK7239 are designed with robust security capabilities and are Matter-compliant. They support features like built-in flash encryption and multiple security layers. Some of these chips are also designed to meet PSA-L2 security requirements. In fact, the BK7239 is among the first RISC-V-based chips in this category to achieve this level of security certification, which helps ensure stronger protection and data privacy for connected devices.
Q. Do you have global offices, and where are your core operations based?
A. Currently, we have offices in two locations: India and the United States. Our US office primarily focuses on sales and customer engagement, while our core operations, including design and manufacturing, are based in India. For now, these two locations support our activities, though we may explore expansion into other regions in the future.
Q. What differences have you observed between the Indian and US markets, and how easy was it to establish operations in both regions?
A. Setting up an office today is relatively straightforward since many processes are digital. The real challenge lies in building operations and establishing a local team, as many clients prefer working with teams in their own region, which helps build trust and closer engagement. In terms of market differences, the US market tends to focus more on advanced technology and innovation, with less sensitivity to pricing. In contrast, the Indian market places equal emphasis on quality, cost competitiveness, and ownership of the product design. Increasingly, Indian companies are moving away from fully imported solutions and seeking to build their own intellectual property and technology capabilities within the country. This shift is driving demand for locally designed solutions that combine strong performance, competitive pricing, and full design ownership.
Q. Have strategic partnerships helped you expand globally?
A. Our key strategic partnerships are primarily with silicon chip manufacturers, and these collaborations play an important role in our expansion. At the same time, our global presence is largely driven by market demand rather than specific regional alliances. Currently, we serve clients across multiple regions, including Europe, the UK, the US, and the Middle East, as well as the Indian market.
Q. Beyond Beken, what other partnerships do you have, and what kind of collaborations are you looking for in the future?
A. In addition to Beken, which we primarily work with for Wi Fi and Bluetooth connectivity chips, we collaborate with several other silicon partners. For example, we work with Nordic Semiconductor on certain wireless solutions, SONIX on audio-related chips, Fingerprint Cards AB on fingerprint sensing technologies, Jondetech Sensor on thermopile-based sensors, and Holtek on microcontrollers used in applications such as EV chargers. Our partnerships are largely centred on silicon manufacturers, and we build solutions by leveraging these technologies alongside our design capabilities. Going forward, we aim to continue expanding our collaborations with semiconductor companies to strengthen our ecosystem and enable us to develop more advanced solutions.
Q. What kind of partnerships are you looking to build going forward?
A. As a startup, partnerships play a key role in our growth. Our primary focus is on strengthening collaborations with silicon manufacturers, as these relationships help us build solutions around their chipsets and technologies. We will continue expanding these collaborations as new technologies emerge. In the future, we may also explore partnerships that support greater scalability, but for now, our main focus remains on working closely with semiconductor partners.
Q. Are you currently looking for new partners, such as vendors or channel partners?
A. At present, we already work with several component distributors who also act as our channel partners. Alongside our own sales team, these large distributors help drive the sales and distribution of our products across the market.
Q. Do you have any academic partnerships or collaborations with universities?
A. Yes, we actively collaborate with several academic institutions. I serve on the advisory board of the startup incubator at Kurukshetra University and also contribute as a guest faculty member at Chitkara University, Sharda University, and Delhi Technological University. At the company level, we have an MoU with Kurukshetra University for research collaboration. Through these partnerships, we gain access to applied research and patents developed within the institutions, and in some cases, we also work as an implementation partner to help translate those innovations into practical technology solutions.
Q. How has Cionlab approached funding and growth?
A. We are a fully bootstrapped company and have been profitable from day one. From the start, our paying clients enabled us to grow without requiring external funding. Even as we scale operations and set up our own manufacturing facility, we continue to rely on internal resources rather than raising outside capital. While I am involved with the startup incubator at Kurukshetra University, which provides funding to other startups, we deliberately choose not to take external support, allowing those who need it to benefit from these programs.
Q. What key challenges are you facing in scaling rapidly as a startup?
A. One of the biggest challenges for a startup like ours is building strong in-house capabilities across design and engineering. To address this, we actively collaborate with academic institutions to help train talent and build the required technical expertise. As we move toward expanding production, another challenge is sourcing advanced manufacturing equipment in India. We are currently working with several global suppliers to bring in the necessary machines and production infrastructure, and we expect to begin production operations soon.
Q. What steps do you take to ensure your Made in India IoT modules can compete globally?
A. Many IoT modules available in the market are standardised products developed overseas, with limited customisation for specific applications. Our approach is different. We design customised hardware modules with flexible footprints and technologies, enabling customers to easily integrate or replace them into their existing designs. This allows them to achieve better performance and competitive pricing while retaining full ownership of the product design. In addition, we provide end-to-end domestic support, which eliminates dependence on overseas suppliers and time zone constraints. Our focus is not only on building modules but also on creating a complete ecosystem that provides customers with local technical support, flexible solutions, and full design ownership.
Q. How much of your R&D and product design is done in India?
A. Most of our product design and R&D is carried out in India. We have a full-fledged design and engineering setup in Bangalore with the required development and testing infrastructure. Our lab includes equipment such as digital oscilloscopes, logic analysers, VNAs, spectrum analysers, and antenna calibration tools, along with pick and place machines for prototyping. We also use 3D printing technologies such as FDM and SLA for product conceptualisation and rapid prototyping. With this setup, our technical team can design, prototype, and develop custom hardware solutions entirely in-house, providing end-to-end development support to our customers.
Q. Is your manufacturing entirely based in India, and what does your production setup look like?
A. Our design work is entirely done in India, but manufacturing follows a hybrid model. We work with PCBA partners in India, including facilities in Delhi, and also collaborate with manufacturing partners in China. This is a strategic decision to balance agility and scalability. Indian partners allow us to offer faster turnaround and more customised solutions for domestic projects, while international partners support larger-scale production and high-volume requirements when needed. This hybrid approach helps us remain flexible and responsive to different customer demands.
Q. How do you plan to strengthen India’s IoT ecosystem?
A. Our focus is on building advanced IoT devices designed and developed in India while integrating emerging technologies such as AI. We are working toward enabling IoT solutions with offline, edge-based intelligence so that devices can operate efficiently without constant cloud dependence. At the same time, we are collaborating with academic institutions and universities to help students develop skills in IoT and embedded technologies. Through these efforts, we aim to contribute to a stronger domestic ecosystem and support the growth of India’s indigenous IoT capabilities.
Q. Are there any policy or ecosystem changes that could accelerate India’s IoT hardware manufacturing?
A. The government has already made significant efforts to promote Made in India initiatives and support startups investing in equipment, including grants and other incentives. The policies are well defined and supportive; the main challenge is awareness, as many companies are not fully utilising the available benefits. Overall, the government’s framework provides a strong foundation for accelerating India’s IoT hardware manufacturing ecosystem.
Q. Is there any misconception about Indian IoT hardware companies that you would like to address?
A. A common misconception is that Indian IoT hardware companies are primarily traders who rely on solutions developed in China. In reality, several companies in India have strong capabilities in designing complete modules, including complex RF-level technologies. Another misconception is that Indian products are significantly more expensive than Chinese alternatives. With the right technology partnerships and design strategies, it is possible to optimise costs and build competitive products that match global supply chains while being developed in India.
Q. What is your view on next-generation IoT modules and their roadmap in India?
A. The next generation of IoT modules is already moving toward AI-driven and voice-enabled devices. A key trend is the development of systems that can operate with offline intelligence, reducing dependence on constant internet connectivity. Devices will increasingly support local voice interaction and AI-based decision-making. For example, appliances such as coffee machines or refrigerators could recognise users, learn usage patterns, and automate tasks or maintenance alerts. This shift toward intelligent, voice-driven, and locally processed IoT systems is where the industry is heading, and we are already developing solutions aligned with this direction.
Q. What emerging technologies are shaping your product roadmap for the coming years?
A. One key trend is offline, edge-based intelligence, where users interact with devices rather than simply controlling them. Appliances such as air conditioners, refrigerators, or coffee machines will become more interactive and intelligent. These devices will be able to monitor their own health, support predictive maintenance, and communicate with backend systems when required. The focus is on building smart, self-aware appliances rather than traditional connected devices.
Q. What are your plans for future growth and investment?
A. We are currently investing in setting up our own manufacturing facility in Bengaluru, with a focus on equipment, tools, and production infrastructure. The facility is expected to become operational within the next three to six months. At present, we rely on PCBA partners in Delhi and China, but the new facility will allow us to bring more manufacturing capabilities in-house and support future expansion.
