Climate-tech startup Newtrace raises $6.3 million from HDFC Bank, Mitsui Sumitomo, Peak XV, others
Climate-tech startup Newtrace has raised $6.3 million (Rs 56.9 crore) in a round led by HDFC Bank and Mitsui Sumitomo Insurance Venture Capital, which valued the company at $30 million, post money.
The round also saw participation from Peak XV’s Surge, Aavishkaar Capital, Speciale Invest, Micelio Technology Fund and angel investors Manish Prataprai Gandhi and Renu Manish Gandhi.
Founded in 2021 by Prasanta Sarkar and Rochan Sinha, PhD holders with backgrounds in aerospace and applied physics, respectively, Newtrace develops advanced electrode technology used inside electrolysers — the machines that split water into hydrogen and oxygen using electricity.
The company said the capital will be used to scale pilot manufacturing, validate its products with customers across China and Europe, and prepare for commercial deployment. Newtrace expects to begin commercial deliveries of its electrode technology within the next 12 months, CEO Sarkar told ET.
“Right now most companies are licensing electrolyser technology from Europe or China and setting up manufacturing plants,” Sarkar said. “But the core materials and components are still not developed locally.”
Newtrace plans to position itself as a global supplier of electrolyser components rather than building complete hydrogen systems.
The company has already deployed pilot systems with public sector oil and gas companies such as BPCL and ONGC and is currently in discussions with electrolyser manufacturers, including Reliance and Larsen & Toubro, Sarkar said.
The startup said in a statement that it has developed a proprietary electrode technology called Voltagen for alkaline electrolysers, designed to improve energy efficiency and extend system lifetime. The electrodes act as drop-in replacements within existing electrolyser stacks, allowing manufacturers to upgrade performance without redesigning their systems.
“We are focusing on the most critical materials in the electrolyser stack,” said cofounder and chief technology officer Sinha. “If the electrodes do not perform, the efficiency of the entire system drops.”
India is pushing to build a domestic green hydrogen ecosystem under the National Green Hydrogen Mission, which aims to produce 5 million metric tonnes of green hydrogen annually by 2030. The programme includes incentives worth Rs 19,744 crore for electrolyser manufacturing and hydrogen production.
While hydrogen adoption has seen fluctuating investor sentiment globally, Sarkar said long-term demand is likely to be driven by energy security and industrial decarbonisation.
Green hydrogen is emerging as a key tool for decarbonising industries such as steel, refining, fertilisers and heavy transport. However, its adoption has been limited due to high costs. Green hydrogen currently costs between $4 and $10 per kilogram, compared with around $2 for conventional hydrogen produced from fossil fuels.
The round also saw participation from Peak XV’s Surge, Aavishkaar Capital, Speciale Invest, Micelio Technology Fund and angel investors Manish Prataprai Gandhi and Renu Manish Gandhi.
Founded in 2021 by Prasanta Sarkar and Rochan Sinha, PhD holders with backgrounds in aerospace and applied physics, respectively, Newtrace develops advanced electrode technology used inside electrolysers — the machines that split water into hydrogen and oxygen using electricity.
The company said the capital will be used to scale pilot manufacturing, validate its products with customers across China and Europe, and prepare for commercial deployment. Newtrace expects to begin commercial deliveries of its electrode technology within the next 12 months, CEO Sarkar told ET.
“Right now most companies are licensing electrolyser technology from Europe or China and setting up manufacturing plants,” Sarkar said. “But the core materials and components are still not developed locally.”
Newtrace plans to position itself as a global supplier of electrolyser components rather than building complete hydrogen systems.
The company has already deployed pilot systems with public sector oil and gas companies such as BPCL and ONGC and is currently in discussions with electrolyser manufacturers, including Reliance and Larsen & Toubro, Sarkar said.
The startup said in a statement that it has developed a proprietary electrode technology called Voltagen for alkaline electrolysers, designed to improve energy efficiency and extend system lifetime. The electrodes act as drop-in replacements within existing electrolyser stacks, allowing manufacturers to upgrade performance without redesigning their systems.
“We are focusing on the most critical materials in the electrolyser stack,” said cofounder and chief technology officer Sinha. “If the electrodes do not perform, the efficiency of the entire system drops.”
India is pushing to build a domestic green hydrogen ecosystem under the National Green Hydrogen Mission, which aims to produce 5 million metric tonnes of green hydrogen annually by 2030. The programme includes incentives worth Rs 19,744 crore for electrolyser manufacturing and hydrogen production.
While hydrogen adoption has seen fluctuating investor sentiment globally, Sarkar said long-term demand is likely to be driven by energy security and industrial decarbonisation.
Green hydrogen is emerging as a key tool for decarbonising industries such as steel, refining, fertilisers and heavy transport. However, its adoption has been limited due to high costs. Green hydrogen currently costs between $4 and $10 per kilogram, compared with around $2 for conventional hydrogen produced from fossil fuels.
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