Exclusive: Newtrace to raise pre Series A funding led by HDFC Bank

Climate tech startup Newtrace is set to raise Rs 28 crore (approximately $3.12 million) in a pre-Series A round from HDFC Bank and Japan-based Mitsui Sumitomo Insurance. Existing investors Aavishkaar Capital, Peak XV Partners, Speciale Invest, and Micelio Fund also joined the new round which materialised after a gap of nearly three years.

The board at Newtrace has passed a resolution to approve the issue of 2,541 pre-Series A CCCPS at an issue price of Rs 111,694 each to raise the above sum, according to a filing with the Registrar of Companies (RoC).

HDFC Bank will lead the new round with an investment of Rs 4.9 crore, followed by Peak XV, Aavishkaar Capital, and Mitsui Sumitomo Insurance through MSIVC2025 VC Investment, which will invest Rs 4.35 crore each. The remaining amount will be contributed by Speciale Invest, Micelio Technology Fund, and existing investors Manish and Renu Gandhi.

As per Entrackr’s estimates, the Bengaluru-based firm’s valuation will remain flat at Rs 237 crore (approximately $26 million) post-money.

The proceeds will be used for product development, expansion, infrastructure and delivery capabilities, clearing capital asset liabilities, and overall growth, the filings added.

Founded in 2021 by Prasanta Sarkar and Rochan Sinha, Newtrace develops cost-efficient electrolyzer technology for large-scale green hydrogen production, with scalable patent-pending systems aimed at lowering costs and reducing reliance on rare earth metals.

Prior to this round, Newtrace has raised over $6.5 million to date including its $5.65 million round raised in May2023 led by Peak XV (formerly Sequoia Capital India) and Aavishkaar Capital.

After the allotment of the new round, Speciale Invest will emerge as the largest external shareholder with a 12.88% stake, followed by Peak XV and Micelio Technology Fund holding 12.88% and 11.65%, respectively. Aavishkaar Capital will own 5.80%, while new investors HDFC Bank Limited and Mitsui Sumitomo will hold 2.11% and 1.84%, respectively.

For the fiscal year ended March 2025, Newtrace reported Rs 1.8 crore in operating revenue, while its losses widened 73% to Rs 15.6 crore.