Climate tech startup Newtrace raises $6.3M in pre-Series A round

Climate tech startup Newtrace has raised ₹56.93 crore (about $6.3 million) in a pre-Series A funding round led by HDFC Bank Limited and Mitsui Sumitomo Insurance Venture Capital.

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

The Bengaluru-based startup said it will use the funding for pilot-scale manufacturing, customer validation, supply agreements, and expanding its manufacturing and engineering capabilities.

Founded in 2021 by Prasanta Sarkar and Rochan Sinha, Newtrace is developing high-performance electrode and electrolyzer technology for green hydrogen production. The company expects to begin initial commercial deliveries of its Voltagen electrodes within the next 12 months.

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

“Voltagen represents a new materials foundation that enables the efficiency and durability required to make green hydrogen cost competitive. This funding allows us to transition from proving the science to scaling manufacturing.”

According to the startup, the global green hydrogen market is projected to reach $38.1 billion by 2029 and expand to $1.4 trillion annually by 2050 but less than 1% of the world’s hydrogen is green, with high costs remaining the biggest barrier. A significant portion of this cost and inefficiency originates in the electrolyzer stack, particularly the electrode, where most performance losses occur.

Newtrace has developed Voltagen, a proprietary electrode technology designed for alkaline water electrolyzers. The startup claimed that it improves energy efficiency, extends system lifetime, and reduces overall hydrogen production costs.

Newtrace primarily serves electrolyzer OEMs, green hydrogen project developers, and industrial gas companies.

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