Sequoia India & Aavishkaar Capital Lead $5.65 Mn Funding In Cleantech Startup Newtrace

Cleantech startup Newtrace has announced the raise of $5.65 Mn in a seed round of funding led by Sequoia Capital India and Aavishkaar Capital. The round also saw participation from existing investors Speciale Invest and Micelio Fund. Ashish Goel, founder & CEO of Urban Ladder, and IKP Knowledge Park were also part of the funding round. 

The startup aims to utilise the investment towards accelerating the global transition to green hydrogen, making sustainability an industry-scale mindset.

Founded in 2021, by Prasanta Sarkar and Rochan Sinha, Newtrace produces green hydrogen to make the element available at an affordable rate. The startup claims to be using a patent-pending electrolyser technology that is designed to get ultrapure hydrogen, with up to 60% reduction in overall production costs. 

According to Newtrace, every year 94 Mn tonnes (Mt) of hydrogen is produced globally, but that involves fossil fuel burn, emitting 900 Mt of CO2. 

Commenting on the funding, Sarkar said, “We are thrilled to secure this round of funding, which will enable us to scale our operations and meet the growing demand for our innovative electrolyzers.”

Adding to this, Vishesh Rajaram, managing partner, Speciale Invest said, “Their unique electrolyser technology holds the potential to redefine conventional hydrogen production by offering a sustainable and cost-effective solution.”

“We look forward to continuing our journey with Newtrace as they spearhead the global shift towards cleaner, green energy and a carbon-neutral future,” he further added. 

Newtrace says that since its inception, it has scaled rapidly and aims to deploy its innovative electrolysers to sectors such as refineries, fertilisers, chemicals, steel and cement, and transportation. 

The startup is also looking to use technology for long-term storage and green hydrogen and ammonia conversion.

Newtrace states that the market size of hydrogen technology deployment is estimated to hit  $1.2 Tn by 2030 to achieve net zero emissions, representing a huge market opportunity for electrolysers, given its pivotal role in pioneering the energy transition from fossil-fuel-derived  hydrogen to its cleaner counterpart.

Last month, another cleantech startup Ossus Biorenewables raised $2.4 Mn in its Pre-Series A round from Gruhas. It said that the fresh funds would help them accelerate the deployment of its bioreactor, OB HydraCel, across sectors including refining, foods, brewing, chemicals and pharmaceuticals. It aims to produce 3-5 tonnes of green hydrogen every day before the end of 2023. 

The government looks at the green hydrogen industry as the sunrise sector. As the Indian government looks at curbing the carbon emission, it approved the Green Hydrogen Mission with an outlay of INR 19.744 Cr from FY24 to FY30. It targets green hydrogen production capacity of 5 Mn metric tonnes per annum by 2030.

According to a NITI Aayog report, the green hydrogen market of India is expected to hit $8 Bn space by 2030 end.