Bengaluru-headquartered deeptech startup Newtrace, which is working on electrodes and electrolyser technology for green hydrogen production, has raised ₹56.93 crore ($6.3 million) in a Pre-Series A funding round.
The round was led by HDFC Bank Limited and MITSUI SUMITOMO INSURANCE Venture Capital. Participants include Peak XV’s Surge, Aavishkaar Capital, Speciale Invest, Micelio Technology Fund and angel investors Manish Prataprai Gandhi and Renu Manish Gandhi.
The new funding will support pilot-scale manufacturing, customer validation, supply agreements, and expansion of engineering capacity. Newtrace expects initial commercial deliveries of Voltagen electrodes within 12 months.
Green hydrogen is seen as a fuel that can replace fossil fuels in sectors such as steel, refining, fertilisers, chemicals and transport.
The global green hydrogen market is projected to reach $38.1 billion by 2029 and $1.4 trillion annually by 2050. Less than 1 per cent of hydrogen produced today is green and cost remains a challenge.
Green hydrogen costs between $4 and $10 per kilogram. This is more than the cost of grey hydrogen. A large share of this cost comes from losses in the electrolyser stack, especially the electrode.
India’s National Green Hydrogen Mission targets production of 5 million metric tonnes of green hydrogen each year by 2030. The programme includes ₹19,744 crore in incentives.
Founded in 2021, Newtrace has developed Voltagen, an electrode technology for alkaline water electrolysers. The company says the system improves efficiency and reduces hydrogen production costs.
Voltagen is designed as a replacement for existing electrodes. This allows electrolyser manufacturers and hydrogen producers to upgrade performance without redesign. Newtrace has also commercialised membraneless electrolyser technology as part of its broader platform.
“Green hydrogen’s cost problem is fundamentally a materials and manufacturing challenge. Voltagen represents a new materials foundation that enables the efficiency and durability required to make green hydrogen cost-competitive,” said Prasanta Sarkar, CEO and Co-Founder of Newtrace.
“We built Newtrace to address the most critical component of the electrolyser stack. Our focus now is on translating our technology into reliable manufacturing that can serve the hydrogen economy,” said Rochan Sinha, CTO and co-founder.
The company operates a 30,000-square-foot technology centre in Bengaluru and employs more than 45 engineers and scientists.