Cygni Energy Private Ltd, a technology-led energy storage company, has raised $12.5 million (Rs 100 crore) through a combination of equity and debt.
Meridian Global Ventures and debt from Indian Overseas Bank lead the equity funding.
The Hyderabad–based Cygni will use the funds to fuel product development, business growth, grow the engineering division to fast-track the product development cycle, and set up a new greenfield manufacturing facility in Telangana, according to a release.
“The need for enhancing EV battery performance, safety and access to quality products has never been more pressing. This round of funding will help us strengthen our product offering and set up a greenfield manufacturing facility with a capacity of 1.2GWh per annum,’’ Venkat Rajaraman, CEO, Cygni Energy, said in a release on Saturday.
The firm plans to set up a huge Gigafactory in Telangana. It currently operates a 250 MWh factory that has the capacity to produce 10,000 Li-ion battery packs each month.
The greenfield project will have the capacity to produce 40,000 battery packs per month, with 1.2GWh annual capacity, when all the lines are fully operational.
The company recently acquired a land parcel in Telangana under the state EV policy to set up a Li-ion battery manufacturing unit.
Incubated at the ‘Incubation Cell’ of IIT Madras, the company focuses on building alternative energy storage solutions for EV 2Ws and 3Ws, and has deployed over 125MWh of storage solutions and powered over 60,000 electric vehicles.