Newtrace Bags $6.3 MIllion to Advance Electroyser Technology for Green Hydrogen

Bengaluru-based deeptech startup Newtrace has raised $6.3 million (~₹56.93 crore) in a pre-Series A funding round to scale its advanced electrode technology designed to improve the efficiency of green hydrogen production.

The funding round was led by HDFC Bank and Mitsui Sumitomo Insurance Venture Capital with participation from Peak XV Partners, Aavishkaar Capital, Speciale Invest, Micelio Technology Fund and angel investors Manish Prataprai Gandhi and Renu Manish Gandhi.

Newtrace develops high-performance electrodes and electrolyser technologies that help produce green hydrogen more efficiently. Green hydrogen produced using renewable energy is considered a key solution for reducing carbon emissions across industries such as steel, refining, fertilisers, chemicals and heavy transport.

Despite its potential, green hydrogen production remains expensive. Current costs range from $4 to $10 per kilogram, more than double those of conventional grey hydrogen. A large part of this cost comes from inefficiencies in the electrolyser stack, particularly at the electrode, where much of the energy loss occurs.

Founded in 2021 by Prasanta Sarkar and Rochan Sinha, Newtrace has developed a proprietary electrode technology, Voltagen, for alkaline water electrolysers. The technology is designed to improve energy efficiency, extend the lifetime of electrolyser systems and reduce the overall cost of hydrogen production. 

Voltagen is designed to be a drop-in replacement for existing electrodes, allowing hydrogen producers and electrolyser manufacturers to upgrade performance without redesigning their systems.

“Green hydrogen’s cost problem is fundamentally a materials and manufacturing challenge,” said Prasanta Sarkar, CEO and Co-Founder of Newtrace. 

Newtrace also develops membraneless electrolyser technology, which forms part of its broader hydrogen production platform.

The company operates from a 30,000-square-foot technology centre in Bengaluru and employs a multidisciplinary team of more than 45 engineers and scientists working on electrochemistry, materials science and industrial scale-up.

With the fresh funding, Newtrace plans to scale pilot manufacturing, expand engineering capabilities and secure customer validation and supply agreements.

“Our focus now is on translating our technology into reliable, scalable manufacturing that can serve the global hydrogen economy,” said Rochan Sinha, CTO and Co-Founder of Newtrace.

The company expects to begin initial commercial deliveries of Voltagen electrodes within the next 12 months as it works towards supporting India’s growing green hydrogen ecosystem.