Newtrace, a climate-tech startup developing low-cost electrolyser technology for green hydrogen, has raised ₹28 crore in a pre-Series A round led by HDFC Bank, regulatory filings show. The funding underscores rising investor interest in India’s green hydrogen sector and marks increased participation from established financial institutions in climate-focused innovation.
Funding details and investor mix
The company will issue 2,541 compulsorily convertible preference shares at a premium, bringing the round size to ₹28 crore. HDFC Bank led the round with a ₹4.9 crore commitment.
Other participants include Peak XV Partners, Aavishkaar Capital and Japan-based Mitsui Sumitomo Insurance, each investing about ₹4.35 crore. Existing backers such as Speciale Invest and Micelio Technology Fund also took part. The blend of domestic and international investors reflects confidence in Newtrace’s long-term potential in the clean-energy space.
Post-money valuation is expected to remain near ₹237 crore, signalling investor focus on sustained technology development rather than short-term valuation gains.
Use of proceeds and business priorities
Newtrace plans to deploy the fresh capital to expand product development, strengthen infrastructure and scale delivery operations. Part of the funds will be used to clear capital-asset liabilities and improve operational efficiency as the company moves from prototyping to larger deployments.
The startup’s core objective is to commercialise electrolyser systems that reduce reliance on scarce and expensive materials, lowering the cost of green hydrogen production and enabling heavy industries to adopt hydrogen as an alternative fuel.
Financials and growth trajectory
Prior to this round, Newtrace had raised more than $6.5 million, including a notable seed round in 2023 that supported research, prototype development and early deployments. For the financial year ending March 2025, the company reported operating revenue of about ₹1.8 crore and losses of roughly ₹15.6 crore—reflecting heavy R&D spending and infrastructure investments typical of deep-tech climate startups.
Context: India’s green hydrogen push
India’s policy push for decarbonisation and renewable energy expansion has elevated green hydrogen as a strategic priority. Electrolysers—devices that split water into hydrogen and oxygen using electricity—are pivotal to making green hydrogen commercially viable, and materials and cost innovation in electrolysers are key to scaling adoption.
With institutional backing from banks, venture funds and international insurers, Newtrace is positioned to deepen its role in India’s emerging green hydrogen ecosystem as the country seeks to meet its net-zero commitments and industrial decarbonisation goals.
