Cygni Energy nabs $12.5M to establish a new manufacturing facility in India

By Pranali Mehta  | Date: 2022-08-26

Cygni Energy nabs $12.5M to establish a new manufacturing facility in India

Cygni Energy, a Hyderabad-based next-generation energy storage company, has recently secured $12.5 million in a funding round which was a combination of equity and debt.

Meridian Global Ventures headed the equity funding round, while the Indian Overseas Bank led the debt round.

According to the credible sources, the start-up plans to use this latest capital drive the business growth and product development.

The firm is also seeking to expand its engineering segment to accelerate the product development cycle and create a new greenfield manufacturing facility in Telangana.

Upon completion, this greenfield project will manufacture approximately 40,000 battery packs each month, with a 1.2 GWh (GigaWatt Hour) annual capacity.

This Gigafactory will support Cygni in maximizing its battery production, upscale the current capacity by 4 times, and contribute to the increasing demand for EVs (electric vehicles in India.

While speaking on the fundraising, Cygni CEO Venkat Rajaraman stated that the requirement for augmenting EV battery performance, access to quality products, and safety has never been more critical.

This funding will further enable the firm to strengthen its product offerings.

Earlier, the reports of Cygni planning to invest around $40 Mn for building a manufacturing plant were gaining traction.

For the uninitiated, Cygni, established in 2014 by Venkat Rajaraman, currently operates a 250-Megawatt Hour (MWh) factory which can manufacture 10,000 Li-ion battery packs per month.

It also works with some of the top-class EV OEMs in India. It also offers customized energy storage solutions to energy companies.

Cygni claims to solve the challenges presented by the outdated Li-ion batteries by encouraging EV adoption across automotive platforms. It has already deployed around 125 MWh storage solutions and powered over 60,000 EVs.

Imperative to note that Cygni is presently the leader in the automotive battery space, building products that can function appropriately in Indian conditions.

Source credit - https://inc42.com/buzz/battery-maker-cygni-energy-raises-12-5-mn-to-set-up-new-manufacturing-facility/

About Author

Pranali Mehta     aeresearch.net

Pranali Mehta

A chemical engineer by qualification, Pranali Mehta has dutifully walked down the slated path and worked in the chemicals industry for a year. Her passion for writing however, pushed her into experimenting with the same as a career. With over three years of experience...

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