Democratic party incumbent Mike Honda from California's 17th Congressional district.
The new California laws allows two opponents from the same party to run against each other in the general election.
Author of best seller Entrepreneurial Nation, Khanna has already impressed political pundits with his fund raising skills.
As per the latest filing reported with the Federal Election Commission, Khanna has already amassed $1.2 million for his congressional bid.
"People come here from around the world to put their dreams into action - that's the promise of America, and it's why my parents came here from Asia," Khanna said announcing his Congressional bid.
"But Silicon Valley is succeeding in spite of Washington - not because of it. I'm going to wage a campaign of ideas on how we can thrive in a world economy where success depends on education," he said.
Khanna said his campaign will employ cutting edge tactics honed during both Obama presidential campaigns and will use people-focused, data-driven strategies and a digitally-savvy approach to connect with voters and build grassroots support.
A longtime Bay Area resident, Khanna returned to Fremont after serving as Deputy Assistant Secretary at the US Department of Commerce, where he was responsible for managing 108 offices dedicated to helping companies in the United States improve exports and increase innovation.
During his tenure, Khanna also served on the White House Business Council where he demonstrated his unifying approach to problem-solving by bringing labor unions to the table to help develop trade strategies - an approach that marked a significant departure from previous Commerce Department practice.
Khanna's fund raisers have attracted top Democratic leaders including Nancy Pelosi, the former speaker of the US House of Representatives, and eminent Indian-Americans like venture capitalist Vinod Khosla.
According to FEC filing, some of the top donors include Google investor Ram Shriram, Tibco founder Vivek Ranadive, Adobe CEO Shantanu Narayen, entrepreneurs Talat and Kamil Hasan, venture capitalist Yogen Dalal, and political activist Shefali Razdan Duggal.
Khanna has roped in several members of the Obama's re-election campaign team, including Steve Spinner, who will serve as his campaign chair.