Climate tech startup Newtrace is set to raise ₹28 crore (approximately $3.12 million) in a pre-Series A funding round led by HDFC Bank, according to regulatory filings. The fresh infusion of capital signals growing investor confidence in India’s green hydrogen ecosystem and highlights the increasing interest of established financial institutions in climate-focused innovation.
Founded in 2021, Newtrace is building advanced electrolyser technology aimed at producing green hydrogen at a significantly lower cost. The startup is focused on reducing the dependency on rare and expensive materials traditionally used in hydrogen production. By making the process more affordable and scalable, Newtrace is positioning itself as a key enabler in India’s clean energy transition.
Newtrace’s Funding Structure And Key Investors
As part of the pre-Series A round, Newtrace will issue 2,541 compulsorily convertible preference shares at a premium price, taking the total round size to ₹28 crore. HDFC Bank is leading the round with an investment of ₹4.9 crore.
Other prominent investors participating in the round include Peak XV Partners, Aavishkaar Capital, and Japan-based Mitsui Sumitomo Insurance, each contributing approximately ₹4.35 crore. Existing investors such as Speciale Invest and Micelio Technology Fund are also continuing their support in this round. The participation of both domestic and international investors reflects strong belief in the company’s long-term potential within the clean energy space.
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Despite the fresh funding, the startup’s post-money valuation is expected to remain around ₹237 crore. This indicates stability in valuation and suggests that investors are backing long-term technological development rather than short-term valuation jumps.
Focus On Product Development And Expansion
The company plans to utilise the newly raised capital for expanding its product development capabilities, strengthening infrastructure, and scaling delivery operations. A portion of the funds will also be allocated towards clearing capital asset liabilities and enhancing operational efficiency.
Newtrace’s core focus remains on innovating electrolyser systems that can help heavy industries adopt green hydrogen as a viable alternative fuel. With India aggressively pushing for green hydrogen adoption under national energy targets, startups like Newtrace could play a significant role in shaping the country’s sustainable future.
Growth Journey So Far
Before this pre-Series A round, Newtrace had raised over $6.5 million in funding, including a significant seed round in 2023. That earlier investment helped the startup accelerate research, prototype development, and early deployments.
For the financial year ending March 2025, the company reported operating revenue of around ₹1.8 crore. However, like many deep-tech and climate startups, it posted losses of approximately ₹15.6 crore, primarily due to high research and development costs and infrastructure investments. This is not unusual for early-stage technology ventures focusing on capital-intensive innovation.
Strengthening India’s Green Hydrogen Ecosystem
India’s commitment to achieving net-zero targets and expanding renewable energy capacity has opened significant opportunities in the green hydrogen segment. Electrolyser technology remains at the heart of hydrogen production, and innovation in this area is critical to making hydrogen commercially viable at scale.
With strong institutional backing and strategic investor participation, Newtrace appears well-positioned to expand its footprint in the green hydrogen market. As funding continues to flow into India’s climate tech sector, Newtrace’s latest round reinforces the growing momentum in sustainable innovation across the country.