[Funding alert] Noida-based EV startup Lohum raises $7M from Baring Private Equity Partners
Noida-based Lithium-ion battery pack manufacturerCleantech Pvt Ltd raised $7 million in a round led by the investment firm, Baring Private Equity Partners India. Other investors who participated in the round include Talbros Automotive Components Ltd and a few others.
According to a statement released by the company, the funds will be utilised for accelerating the growth plans of the company to achieve an integrated domestic capacity of 700MWh within a year. The company, which already has a manufacturing facility in Greater Noida, announced the launch of a second facility with this fundraise which will further expand the company's manufacturing capabilities. The company also plans to open a recycling plant in the US in the coming times.
Commenting on the capital raise, Rajat Verma, Founder and CEO of Lohum said, "The investment raised will ensure that Lohum Cleantech expands its manufacturing capabilities and its product offerings multi-fold. In 2021, one of our key focus is expand our dealer network across the country and also increase overseas operations."
Lohum Cleantech is a battery pack manufacturer for two-wheelers and three-wheeler electric vehicles. It also recycles Li-ion batteries by extracting critical raw materials such as nickel, cobalt, and manganese from used batteries for reuse. India relies heavily on China for the import of Li-ion batteries. By repurposing the batteries in-house, the company aims to help India become self-reliant in the manufacturing of lithium-ion batteries.
Arul Mehra, Partner at Baring Private Equity Partners India, believes that Lohum has a pioneering approach to lithium-ion battery manufacturing and recycling, and is poised to benefit from the coming wave of electric vehicles and stationary storage.
He said, "Their vertical integration into first life and second life batteries along with recycling makes them an ideal partner for original equipment manufacturers aiming for cost-effective and sustainable battery solutions. Making recycled battery chemicals and metals available to customers which lack access to them for geopolitical or geographical reasons will lead to democratisation in cell manufacturing."
Lohum was founded in 2017 by Rajat, formerly an aerospace engineer.