Exclusive: NCLT Sends Log9 Into Insolvency After INR 6.7 Cr Default

The Bengaluru bench of the National Company Law Tribunal (NCLT) has admitted battery tech startup Log9 Materials and its subsidiary Log9 Mobility into insolvency, marking the downfall of the startup once seen as one of India’s most promising deeptech bets.

The Tribunal approved a plea filed by Mumbai-based Ghalla & Bhansali Securities, which had provided loans to both companies. The creditor said Log9 Materials defaulted on more than INR 3.33 Cr and Log9 Mobility on more than INR 3.39 Cr. 

Despite repeated notices, neither company repaid the dues. The Tribunal said the evidence clearly showed a financial debt and a continuing default, and settlement discussions or arbitration clauses could not block an insolvency filing. It imposed a moratorium, stopping all lawsuits, recoveries and asset transfers while the process runs.

After receiving repeated payment notices, Log9 approached the lender in March 2025 and asked to settle the entire outstanding amount of more than INR 6.7 Cr for just INR 1 Cr. 

In its letter, the startup admitted it was facing “financial challenges” because of market conditions, delays in collecting payments and “erosion of certain assets”. When the lender rejected this, Log9 came back with a slightly higher offer of INR 1.25 Cr in April and asked for three months to pay. 

The NCLT said that the startup’s settlement offers showed how serious Log9’s financial problems were. The Tribunal said the amount Log9 offered was far too low compared to the actual dues and clearly showed that the startup was under “serious financial distress”. It also noted that the timing of the offers suggested the startup was mainly trying to “gain time” rather than make a genuine effort to repay its debt.

The Tribunal appointed Neeraja Kartik as the interim resolution professional to take charge of both the companies during the insolvency process.

Inc42 has reached out to Akshay Singhal, founder and former CEO of the startup, for comments on the development. The story will be updated on receiving a response.

Log9’s Troubles

The order comes after months of turmoil at Log9. Founded in 2015 by Dr. Akshay Singhal, Kartik Hajela and Pankaj Sharma, Log9 is a battery tech startup which was known for bold claims about advanced battery and cell technology till 2023.

The startup raised more than $60 Mn from investors such as Sequoia Surge (now Peak XV Partners), Exfinity, Amara Raja and Petronas Ventures. But behind the scenes, Log9 had been struggling with failed technology bets, financial stress, and customer disputes.

Over the past year, Log9 laid off most of its workforce, shut multiple facilities, lost a key cofounder, and began selling parts of the business to survive. 

Earlier, sources told Inc42 that fewer than 40 employees remained and centres outside Bengaluru and Delhi had shut down. The startup was also fighting legal disputes with fleet operator BluWheelz, which alleged poor-quality vehicles, inflated bills and losses during the peak festive season. 

At the time, Log9 denied the allegations and accused BluWheelz of withholding payments.

Much of Log9’s current crisis traces back to its technology choices. The startup bet heavily on lithium-titanate (LTO) batteries, which are safer but more expensive and deliver lower range. As cheaper and improved LFP batteries from China flooded the market in 2024, Log9’s LTO packs lost relevance overnight. 

Log9 had also invested INR 150 Cr in a cell manufacturing plant that never scaled as planned, leaving the startup dependent on imported Chinese cells and unable to compete on cost.

To boost revenue, Log9 entered the EV leasing business through partnerships with Omega Seiki Mobility and Quantum. This helped revenue rise from INR 25.5 Cr in FY22 to INR 110.3 Cr in FY24, but the core battery technology remained weak and losses kept climbing, touching INR 118.6 Cr in FY24 with debt of around INR 200 Cr. 

Late customer payments and rising borrowing costs pushed the startup into a cycle of taking more loans to repay old ones. As the cash crunch deepened, employees went unpaid for months and asset financiers began repossessing vehicles.