In a pre-Series A financing, Japan-based Mitsui Sumitomo Insurance and HDFC Bank are expected to contribute Rs 28 crore, or roughly $3.12 million, to the climate tech startup Newtrace. After a nearly three-year lapse, the current round also included existing investors Aavishkaar Capital, Peak XV Partners, Speciale Invest, and Micelio Fund.

Key Highlights

• Newtrace raises pre-Series A funding in a strategic round led by HDFC Bank.
• Capital infusion to accelerate product development, market expansion, and customer acquisition across key segments.

According to a filing with the Registrar of Companies (RoC), the board of Newtrace has approved the issuance of 2,541 pre-Series A CCCPS at an issue price of Rs 111,694 apiece in order to raise the aforementioned amount.

With an investment of Rs 4.9 crore, HDFC Bank will lead the fresh round, followed by Peak XV, Aavishkaar Capital, and Mitsui Sumitomo Insurance through MSIVC2025 VC Investment, each of whom will contribute Rs 4.35 crore. Speciale Invest, Micelio Technology Fund, and current investors Manish and Renu Gandhi will contribute the remaining sum.

According to projections, the Bengaluru-based company's post-money valuation will stay constant at Rs 237 crore, or roughly $26 million.

The money will be utilized for infrastructure and delivery capabilities, product development, expansion, capital asset liability clearance, and general growth.

Prasanta Sarkar and Rochan Sinha founded Newtrace in 2021 with the goal of lowering prices and reducing reliance on rare earth metals by developing scalable, patent-pending electrolyzer technology for large-scale green hydrogen production. Including its $5.65 million round in May 2023, which was headed by Peak XV (previously Sequoia Capital India) and Aavishkaar Capital, Newtrace has raised over $6.5 million to far.

With a 12.88% stake, Speciale Invest will be the largest external stakeholder following the allocation of the latest round. Peak XV and Micelio Technology Fund will hold 12.88% and 11.65% of the company, respectively. HDFC Bank Limited and Mitsui Sumitomo, two new investors, will own 2.11% and 1.84% of the company, respectively, while Aavishkaar Capital will own 5.80%.

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Newtrace reported operating income of Rs 1.8 crore for the fiscal year that ended in March 2025, but its losses increased by 73% to Rs 15.6 crore.