EV battery producer Neuron Energy has secured Rs 20 crore or $2.3 million in its Series A funding with existing investors Chona Family Office putting in Rs 15 crore and Capri Global Family Office accounting for Rs 5 crore. The startup’s post-money valuation is Rs 205 crore.
The startup has stated that it will invest the funding towards boosting its research and development, intending to establish an R&A laboratory for battery life enhancement, charging time enhancement, and efficient cooling packs in Pune, India.
A part of the funding will also be used to establish its manufacturing plant in Delhi having a target of manufacturing 100MWH of batteries for two-wheelers. The startup currently obtains the products through a contract manufacturing company. Working capital and all other needs will also be met through the funds raised through the issue of the offering.
Neuron Energy was founded in 2015 by Pratik Kamraj and Raj Shah, offering various electric mobility solutions such as sodium-ion batteries, lead-acid, and advanced lithium-ion batteries. The startup had last raised Rs 20 crore in its Pre-Series A funding led by Equanimity Investments and the Rajiv Dadlani Group.
Neuron Energy’s CEO Kamdar stated that these investments will drive strategic innovation in the field of EV batteries, which will contribute to the company’s target of Rs 300 crore revenue by FY26. He also highlighted Neuron Energy’s commitment to sustainable energy solutions and indigenous EV ecosystem.
Kamdar-led startup recorded a turnover of Rs 67 crore in FY24 and earned a profit after tax of Rs 1 crore. He further said that the startup has ambition to achieve the revenue between Rs 150 crore – Rs 220 crore for the current financial year.
The CEO also added, “With Rs 120 crore 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 Rs 20-25 crore.”
L3 category relates to the two-wheel motorcycles for which the cylinder capacity of thermic engine is more than 50 cubic centimetres.
Neuron Energy has a strategy to venture into the ESS or Energy Storage Systems market in the Middle East. The company presently offers golf cart batteries to the Middle Eastern, European, and the Southeast Asian markets. The startup is further planning other power backup energy storage forms regarding solar and multiple projects in the Middle East.
On answering a question related to the effects that FAME-II controversy could have on the business of Neuron Energy, the CEO said that since Neuron Energy operates as a relatively young start-up business, it has not had extensive contact with companies that are certified under the FAME-II scheme to be impacted significantly.
The CEO also mentioned that this is not going to hurt Neuron Energy much whether there is or there isn’t FAME-III because Neutron Energy’s primary focus is in the L5 category, a three-wheeled motor vehicle, which is eligible for minimal FAME incentive benefits.
Chona Family Office director Nirali Solani also shared her views, “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.”
Source: inc42
