Peak XV joins $6.3m pre-series A for India's Newtrace

Newtrace, a Bengaluru-based deeptech startup developing electrodes and electrolyzers for green hydrogen, has raised ₹56.9 crore (US$6.3 million) in a pre-series A round led by HDFC Bank Limited and Mitsui Sumitomo Insurance Venture Capital.

The round also included Peak XV’s Surge, Aavishkaar Capital, Speciale Invest, Micelio Technology Fund, and angel investors Manish Prataprai Gandhi and Renu Manish Gandhi.

Newtrace said the funding will back pilot-scale manufacturing, customer validation and supply agreements, expansion of manufacturing and engineering capabilities, and that it expects initial commercial deliveries of its Voltagen electrodes within 12 months.

Newtrace was founded in 2021 by Prasanta Sarkar and Rochan Sinha and said it operates a 30,000-sq-ft technology centre in Bengaluru with more than 45 engineers and scientists.

🔗 Source: Newtrace

🧠 Food for thought

Implications, context, and why it matters.

Newtrace’s product strategy focuses on India’s industrial base

The technology already has early adoption with large industrial customers such as BPCL (Bharat Petroleum Corporation Limited) and ONGC (Oil and Natural Gas Corporation). That customer pull supports a move toward commercial sales 1.
The work builds on five years of R&D (research and development). The early focus on membrane-less electrolyzers shaped the VoltaGen electrode technology 1.
VoltaGen avoids critical raw materials. It supports 100% local value addition. It aligns with India’s manufacturing and self-reliance goals. It also meets National Green Hydrogen Mission (NGHM) Production-Linked Incentive (PLI) requirements 1.
Newtrace prioritizes core component engineering over assembly. The company aims to operate as a deep-tech original equipment manufacturer (OEM). It plans end-to-end solutions across the electrolyzer value chain 1.

The investment points to a change in decarbonization strategy

The pre-series A round was led by HDFC Bank Limited and MITSUI SUMITOMO INSURANCE Venture Capital. The deal suggests banks and industrial investors are backing early-stage hardware alongside venture funds.
Newtrace calls the approach “true indigenisation” of critical components. That focus treats component capability as necessary for scaling domestic clean-tech supply chains 1.
Lower green-hydrogen costs could speed decarbonization in hard-to-abate industries such as oil refining, chemicals, and steel. Newtrace lists these sectors as target green-hydrogen markets 2.
A playbook built around localized component innovation could carry over to other strategic sectors in emerging economies. It also supports industrial growth plus energy independence.