Newtrace to Raise Rs 28 Crore in Pre-Series A Funding

Newtrace, a climate tech startup, is set to secure Rs 28 crore (around $3.12 million) in a pre-Series A funding round. This investment is being led by HDFC Bank along with Mitsui Sumitomo Insurance of Japan. The funding round also sees existing investors, including Aavishkaar Capital, Peak XV Partners, Speciale Invest, and Micelio Fund, participating after nearly three years.

Details of the Funding Round

Newtrace’s board has approved the issuance of 2,541 pre-Series A CCCPS shares at an issue price of Rs 111,694 each to raise the aforementioned amount, as outlined in a filing with the Registrar of Companies (RoC). HDFC Bank is set to invest Rs 4.9 crore, while Peak XV, Aavishkaar Capital, and Mitsui Sumitomo Insurance, through MSIVC2025 VC Investment, will each contribute Rs 4.35 crore. Additional contributions will come from Speciale Invest, Micelio Technology Fund, and current investors Manish and Renu Gandhi.

Valuation and Future Plans

Startup Superb estimates that the Bengaluru-based firm’s valuation will remain steady at Rs 237 crore (around $26 million) post-money. The funds will be allocated towards product development, expansion, infrastructure enhancements, delivery capabilities, settling capital asset liabilities, and overall growth.

Background of Newtrace

Founded in 2021 by Prasanta Sarkar and Rochan Sinha, Newtrace focuses on creating cost-effective electrolyzer technology for large-scale production of green hydrogen. The startup is developing scalable patent-pending systems that aim to cut costs and minimise dependence on rare earth metals.

Previous Funding Rounds

Before this funding round, Newtrace raised over $6.5 million, including a $5.65 million round in May 2023 led by Peak XV (formerly Sequoia Capital India) and Aavishkaar Capital.

Ownership Post-Funding

After the allotment from this new round, Speciale Invest will hold the largest external shareholder position with a 12.88% stake, followed by Peak XV and Micelio Technology Fund with 12.88% and 11.65%, respectively. Aavishkaar Capital will possess 5.80%, while new investors HDFC Bank Limited and Mitsui Sumitomo will own 2.11% and 1.84%, respectively.

Financial Performance

For the fiscal year ending in March 2025, Newtrace reported an operating revenue of Rs 1.8 crore, while its losses widened by 73% to Rs 15.6 crore.