Startups building hardware for India’s energy infrastructure are raising follow-on rounds several times the size of their previous fundraises, as risk investors deepen bets on technologies spanning grid management, storage and power electronics.
Bengaluru-based Enerzolve, which makes smart meters, power conversion systems and energy storage systems, is in talks to raise $20 million from existing investors Jungle Ventures and Kae Capital as well as Schneider Electric, people aware of the matter told ET. That’s nearly four times the $5 million it raised in a January round.
Chennai-based Tan90 Thermal, which uses phase-change materials to keep food and pharmaceuticals chilled in transit without continuous refrigeration, is in talks to raise about ₹100 crore ($10.7 million) led by Blume Ventures, said people in the know. That’s five times the ₹20 crore it raised last year.
Tan90 and Enerzolve didn’t respond to queries.
The driver for this funding is energy security more than climate, according to Vishesh Rajaram, founding partner at venture capital firm Speciale Invest. “India imports most of its oil, a large share of its gas, and nearly all its battery cells, electrolyser stacks and critical power electronics.”
Unless the hardware underpinning renewable energy and storage is built domestically, the expansion of these technologies could deepen import dependence. This is shifting the investment opportunity toward building sovereign infrastructure, with demand supported by national energy targets and government policies, he added.
Emo Energy, which develops integrated battery systems and thermal management solutions, raised $6.2 million in January. The company is in talks to raise ₹150-200 crore ($16-21 million) in a new round, nearly thrice its previous round, ET reported in June.
But the larger round sizes are partly structural, said Rajaram.
“Energy hardware moves from lab to pilot line to commercial plant, and each step needs far more capital than the last,” he said. “A big step-up is the natural shape of the business, not just exuberance.”
Founders now arrive at the follow-on with working cells, stacks or prototypes and validated performance data, he said. Moreover, policy-backed procurement and purchase pledges mean investors can underwrite orders, not just a market size.
ET’s June report also said that EarthEn Energy, which is developing heat-storage batteries for industrial customers, and Arkle Energy, which develops vanadium redox flow batteries, were in various stages of discussions with investors.
Among recent funding deals this year, rapid-charging battery startup Exponent Energy raised $22 million in February, while sodium-ion battery maker Naxion Energy secured $2.62 million in August. Gandhinagar-based Cellegant Energy Systems, which develops hydrogen fuel-cell systems for drones, raised $275,000 in November. Noida-based battery storage startup VoltSeal raised $1.5 million in June in a round led by Theia Ventures. The spread of investments shows how the opportunity extends beyond renewable energy generation and electric mobility to the underlying hardware needed to manage, store and distribute power.
“The country has reached approximately 299.25 GW of installed renewable energy capacity as of September 2026, compared to 76.38 GW in 2014,” said Anjali Bansal, founding partner, Avaana Capital. “This rapid expansion is creating a growing need for proprietary technologies, advanced materials and hardware solutions across the energy value chain.”
Avaana has invested in energy startups such as solar finance company Aerem, charging infra startup Kazam, and Dreamfly Innovations, which makes smart battery systems for drones and aerospace.
“Recent global events have reminded us how closely energy and security are linked,” said Kajal Shah, cofounder and CEO of Dreamfly Innovations. “Most drone batteries used in India have historically been imported, so building design capability at home is our way of adding resilience to that part of the chain.”
Dreamfly’s revenue jumped to ₹8.6 crore in FY26 from Rs 93 lakhs the year before.
In a blog post in June, Theia Ventures noted that India’s renewable energy accounts for 43% of the country’s installed power capacity but just 22% of actual generation due to its intermittent nature. The mismatch between daytime solar generation and evening industrial demand creates reliability gaps.
This is creating an opportunity for distributed energy storage, the post said. Falling battery costs and improvements in technology are also making storage viable for applications beyond backup power.
Bengaluru-based Enerzolve, which makes smart meters, power conversion systems and energy storage systems, is in talks to raise $20 million from existing investors Jungle Ventures and Kae Capital as well as Schneider Electric, people aware of the matter told ET. That’s nearly four times the $5 million it raised in a January round.
Chennai-based Tan90 Thermal, which uses phase-change materials to keep food and pharmaceuticals chilled in transit without continuous refrigeration, is in talks to raise about ₹100 crore ($10.7 million) led by Blume Ventures, said people in the know. That’s five times the ₹20 crore it raised last year.
Tan90 and Enerzolve didn’t respond to queries.
The driver for this funding is energy security more than climate, according to Vishesh Rajaram, founding partner at venture capital firm Speciale Invest. “India imports most of its oil, a large share of its gas, and nearly all its battery cells, electrolyser stacks and critical power electronics.”
Unless the hardware underpinning renewable energy and storage is built domestically, the expansion of these technologies could deepen import dependence. This is shifting the investment opportunity toward building sovereign infrastructure, with demand supported by national energy targets and government policies, he added.
Emo Energy, which develops integrated battery systems and thermal management solutions, raised $6.2 million in January. The company is in talks to raise ₹150-200 crore ($16-21 million) in a new round, nearly thrice its previous round, ET reported in June.
But the larger round sizes are partly structural, said Rajaram.
“Energy hardware moves from lab to pilot line to commercial plant, and each step needs far more capital than the last,” he said. “A big step-up is the natural shape of the business, not just exuberance.”
Founders now arrive at the follow-on with working cells, stacks or prototypes and validated performance data, he said. Moreover, policy-backed procurement and purchase pledges mean investors can underwrite orders, not just a market size.
ET’s June report also said that EarthEn Energy, which is developing heat-storage batteries for industrial customers, and Arkle Energy, which develops vanadium redox flow batteries, were in various stages of discussions with investors.
Among recent funding deals this year, rapid-charging battery startup Exponent Energy raised $22 million in February, while sodium-ion battery maker Naxion Energy secured $2.62 million in August. Gandhinagar-based Cellegant Energy Systems, which develops hydrogen fuel-cell systems for drones, raised $275,000 in November. Noida-based battery storage startup VoltSeal raised $1.5 million in June in a round led by Theia Ventures. The spread of investments shows how the opportunity extends beyond renewable energy generation and electric mobility to the underlying hardware needed to manage, store and distribute power.
“The country has reached approximately 299.25 GW of installed renewable energy capacity as of September 2026, compared to 76.38 GW in 2014,” said Anjali Bansal, founding partner, Avaana Capital. “This rapid expansion is creating a growing need for proprietary technologies, advanced materials and hardware solutions across the energy value chain.”
Avaana has invested in energy startups such as solar finance company Aerem, charging infra startup Kazam, and Dreamfly Innovations, which makes smart battery systems for drones and aerospace.
“Recent global events have reminded us how closely energy and security are linked,” said Kajal Shah, cofounder and CEO of Dreamfly Innovations. “Most drone batteries used in India have historically been imported, so building design capability at home is our way of adding resilience to that part of the chain.”
Dreamfly’s revenue jumped to ₹8.6 crore in FY26 from Rs 93 lakhs the year before.
In a blog post in June, Theia Ventures noted that India’s renewable energy accounts for 43% of the country’s installed power capacity but just 22% of actual generation due to its intermittent nature. The mismatch between daytime solar generation and evening industrial demand creates reliability gaps.
This is creating an opportunity for distributed energy storage, the post said. Falling battery costs and improvements in technology are also making storage viable for applications beyond backup power.
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