Climate tech startup Newtrace will raise ₹28 crore in a pre-Series A round led by HDFC Bank, according to regulatory filings. The investment underscores rising investor confidence in India’s green hydrogen sector and signals greater participation from established financial institutions in climate-focused technology.
Funding details and investor mix
Newtrace will issue 2,541 compulsorily convertible preference shares at a premium to complete the ₹28 crore round. HDFC Bank is the lead investor with a commitment of ₹4.9 crore.
Other participants include Peak XV Partners, Aavishkaar Capital and Japan’s Mitsui Sumitomo Insurance, each contributing about ₹4.35 crore. Existing backers such as Speciale Invest and Micelio Technology Fund have also continued their support, reflecting both domestic and international faith in Newtrace’s long-term prospects.
The startup’s post-money valuation after the round is expected to remain near ₹237 crore, suggesting investors are prioritising sustained technology development over short-term valuation gains.
Use of proceeds and strategic priorities
Newtrace plans to deploy the fresh capital to broaden product development, strengthen infrastructure and scale delivery operations. Funds will also be used to clear capital asset liabilities and improve operational efficiency.
The company’s primary technical focus is on developing advanced electrolyser systems that reduce reliance on scarce, expensive materials and cut the cost of producing green hydrogen. These systems are targeted at enabling heavy industries to adopt hydrogen as a viable low-carbon fuel.
Background and financials
Founded in 2021, Newtrace has been working on electrolysers designed to make green hydrogen production more affordable and scalable—an essential step for large-scale decarbonisation in sectors such as steel, fertilizers and refining.
Prior to this round, Newtrace had raised more than $6.5 million, including a notable seed round in 2023 that accelerated R&D, prototyping and early deployments. For the financial year ended March 2025, the company reported operating revenue of about ₹1.8 crore and losses near ₹15.6 crore, driven largely by heavy R&D and infrastructure expenditure—typical for capital-intensive deep-tech startups.
Context: India’s green hydrogen push
India has set ambitious targets for renewable energy expansion and green hydrogen deployment as part of its net-zero and energy transition goals. Electrolyser innovation is central to driving down production costs and supporting large-scale adoption.
With institutional investors joining the funding round, Newtrace is positioned to scale its technology at a time when policy support, corporate demand and project pipelines for green hydrogen are expanding across India. The fresh financing reflects broader momentum in the country’s climate-tech ecosystem and growing institutional belief in hydrogen’s role in decarbonising hard-to-abate sectors.
