Cygni Energy Secures Rs 60 Crore Funding for Expansion in Energy Storage

Energy storage startup Cygni Energy is poised to raise Rs 60 crore, approximately $6.4 million, from its current investor Meridian Global Ventures. This marks the company’s first significant funding round in nearly four years. The board at Cygni Energy has approved a special resolution to issue 4,16,667 compulsorily convertible preference shares (CCPS) at a rate of Rs 1,440 per share to achieve this funding, as indicated in a filing reviewed by Startup Superb.

According to Startup Superb’s projections, Cygni Energy is likely to be valued at around Rs 244 crore post-money, following this round of investment. The recent filings reveal that, after the share allotment, Meridian Global Ventures will elevate its ownership stake in Cygni Energy to 49.23%. The funds raised will be directed towards assisting the company’s expansion strategies, which include advancing its battery energy storage solutions and enhancing its footprint in the clean energy sector, as noted in the filing.

Established in 2014 by Venkat Rajaraman, Cygni Energy focuses on developing innovative lithium-ion battery packs and energy storage systems tailored for electric mobility and renewable energy needs, with an emphasis on enhancing manufacturing capabilities within India. Before this funding round, Cygni Energy had gathered approximately $19 million in total, which included Rs 100 crore ($12.5 million) from a mix of debt and equity investments from Meridian Global Ventures and Indian Overseas Bank in August 2022.

In FY25, Cygni Energy witnessed a revenue decline from operations, dropping to Rs 38.4 crore from Rs 47 crore in FY24, while the company encountered an increase in losses, rising to Rs 8.64 crore during the same fiscal year.