Exclusive: Neuron Energy Raises INR 20 Cr To Expand Battery Manufacturing Capacity

EV battery manufacturer Neuron Energy has raised INR 20 Cr (about $2.3 Mn) in its Series A funding round from existing investor Chona Family Office and Capri Global Family Office.

While Chona Family Office invested INR 15 Cr in the funding round, Capri Global Family Office pumped in INR 5 Cr. The startup raised the funding at a post-money valuation of INR 205 Cr.

It said that the funding will be used to enhance its research and development capabilities. It plans to set up an R&D laboratory in Pune, focused on improving battery life, reducing charging time, and developing efficient cooling packs. 

A part of the funding will also be used to set up its manufacturing unit in Delhi, with a capacity of producing 100 MWh of batteries annually for two-wheelers. The startup currently gets its products through a contract manufacturer.

The funds will also be used for working capital and other requirements.

Founded in 2018 by Pratik Kamdar and Raj Shah, Neuron Energy offers a comprehensive range of electric mobility solutions, including lead-acid, advanced lithium-ion, and sodium-ion batteries. 

The funding round comes nearly a year after the startup raised INR 20 Cr in its pre-Series A round, led by Equanimity Investments and the Rajiv Dadlani Group.

Commenting on the funding, Neuron Energy CEO Kamdar said, “These investments will drive our innovation efforts in EV battery technology and support our goal of achieving a revenue of INR 300 Cr by FY26. We remain committed to advancing sustainable energy solutions and contributing to India’s evolving EV landscape.”

Kamdar said that the startup clocked a revenue of INR 67 Cr in FY24 and posted a profit after tax of INR 1 Cr. He added that the startup is targeting a revenue of INR 150 Cr to INR 220 Cr in the ongoing financial year. 

“With INR 120 Cr orders in hand, we are expanding into drone batteries and building our retail channel in the L3 segment. We plan to set up a fully automated plant in two years with a capex of INR 20-25 Cr,” said Kamdar.

L3 category includes two-wheel motorcycles with a thermic engine cylinder capacity exceeding 50 cubic centimetres. 

Besides, Neuron Energy plans to enter the ESS (Energy Storage Systems) segment in the Middle East. The startup currently provides golf cart batteries to the Middle Eastern, European, and Southeast Asian markets. 

Kamdar said that the startup will also explore other power backup energy storage solutions for solar and various projects in the Middle East. 

Responding to a question on the impact of FAME-II controversy on the startup’s business, the CEO said that Neuron Energy had limited exposure to companies certified under the scheme, hence it didn’t have much of an impact. 

The CEO also said that Neuron Energy won’t be impacted much with the presence or absence of FAME-III as well. “This is because Neuron Energy operates mainly in the L5 category (a three-wheeled motor vehicle), where FAME benefits are low.”

Meanwhile, Chona Family Office director Nirali Solani said, “By investing in Neuron Energy, we are contributing to a future where clean energy solutions are accessible and impactful. We believe in the transformative potential of Neuron Energy’s technology and are confident that this partnership will drive significant advancements in the EV sector in India.”