Hyderabad-based lithium-ion battery packs manufacturer, Cygni Energy has received $12.5 million in a funding round that included both equity and debt.
Meridian Global Ventures led the equity round, while the Indian Overseas Bank led the debt round.
The new money will be used to fuel product development and company growth at the startup. Cygni Energy intends to expand its engineering division to shorten the product development cycle, and it also intends to establish a new greenfield manufacturing site in the state of Telangana.
When all of the lines are completely operating, the greenfield project will be capable of producing 40,000 battery packs per month, with an annual capacity of 1.2-GigaWatt Hour (GWh).
The Gigafactory will help Cygni Energy maximize battery output, quadruple current capacity, and contribute to India’s growing demand for electric cars (EVs), according to the startup.
Previously, it was reported that Cygni Energy planned to invest over $40 million (nearly INR 300 crore) to establish the production unit.
The official drive for EV adoption in the country, as well as the growing number of EVs, has focused attention on the need for India-made batteries and other components.
The issue has gained traction as a result of recent EV-related fires in the country. Cygni Energy is currently one of the market leaders, creating goods for use in Indian circumstances.
Matter, India’s first active liquid-cooled two-wheeler electric vehicle battery company, also received a $10 million initial round of equity funding in June to launch its new line of electric mobility and energy storage solutions.
Under its Production-Linked Incentive (PLI) Scheme, the Ministry of Heavy Industries has also secured contracts with Ola Electric, Reliance New Energy, and Rajesh Exports to manufacture advanced chemistry cell (ACC) batteries.
These firms are anticipated to build a 95 GWh battery manufacturing capacity.