Climate tech startup Newtrace has raised $5.65 million in a seed round led by Sequoia Capital India and Aavishkaar Capital, along with participation from existing investors Speciale Invest and Micelio Fund. Ashish Goel, founder-CEO of Urban Ladder, and IKP Knowledge Park also participated.
The fundraise will drive the expansion of Newtrace’s electrolyzer manufacturing and deployment capabilities in India, the company said in a press release.
Newtrace aims to make green hydrogen production cheaper, scalable and efficient. The company claims its proprietary, patent-pending electrolyzer technology is designed to obtain ultrapure hydrogen, with up to 60% reduction in overall production costs.
Since Newtrace’s launch in 2021, it claims to have scaled rapidly and plans to deploy its electrolyzers in sectors such as refineries, fertilisers, chemicals, steel and cement, and transportation. The company is also looking to expand its solution into providing technology for long-term storage and conversion of green hydrogen and ammonia.
Aavishkaar Capital is an Impact fund manager focused on the Global South. It invests in high environmental and social impact sectors across India, emerging Asia, and Africa. Its portfolio companies include AgroStar, Chqbook, Financepeer, MooFarm, Fabelio and GoBolt among others.
In April last year, the fund had raised Rs 1,000 crore ($130 million) towards the first close of its eighth impact fund.
