Battery startup Log9 Materials raises $40 million in Series B funding

• ByStartupStory     |    January 23, 2023

Amara Raja Batteries Ltd. and Petronas Ventures led the $40 million Series B funding round for vehicle battery Log9 materials, which included a combination of stock and debt financing. 

The round also included participation from Western Capital Advisors Private Ltd., Oxyzo Financial Services Private Ltd., Unity Small Finance Bank, Incred Financial Services Private Ltd., and other new investors. 

A firm representative declined to elaborate on how the $40 million capital was split between equity and debt.

The deeptech startup plans to use the funds to increase its manufacturing capabilities. Akshay Singhal, founder and chief executive officer of Log9 said, “The recent round of investments will allow us to grow our battery manufacturing capabilities to a 2 gigawatt hour (GWh) capacity by the end of 2024 and commission an integrated lithium Ion cell production line.”

Singhal, Kartik Hajela, and Pankaj Sharma founded Log9 in 2015 with the intention of investing Rs 100 crore in the development of cell and battery technology stacks. 

India’s ecosystem for electric vehicles has accelerated in recent years as a result of government efforts to promote more environmentally friendly transportation methods. By 2030, the central government projects that commercial, private, and two- and three-wheeler EV sales penetration will reach 30%, 70%, and 80%, respectively.

The segment’s public and private investments will be crucial to achieving this goal. According to research conducted by Windmill Capital, over 43 electric car startups in India raised $673 million last year and plan to do so until November 2022.

“We foresee these investments to cement our position in the commercial electric vehicle space and to expand into stationary battery sectors such as power backup and grid storage,” said Singhal. 

Under the name RapidX, Log9 now produces batteries for electric vehicles. Under the ZappUp brand, it also offers battery charging services for electric vehicles. It purports to have submitted over 70 patent applications.

“Log9 is invested in providing its customers with efficient batteries, based on both LTO and LFP lithium-ion technologies,” said Singhal. 

The Bengaluru-based business is currently looking to grow internationally. Over the next quarters, it will begin seeking out pilots in other markets, with a special emphasis on the tropical belt, he noted. 

In an investment round led by Amara Raja Batteries in August 2021, Log9 raised $8.5 million. The business has raised close to $50 million so far. Among its other investors are CBC Japan, Grip Invest Advisors Private Ltd., Cornerstone Venture Partners, LO Funds, and Oxy Capital. 

Other electric mobility-related businesses that received funding in 2022 include, among others, Euler Motors, BluSmart, Chargeup, and goEgoNetwork. In an equity financing round headed by GIC Singapore in October of the previous year, Euler Motors raised $60 million.

“Battery manufacturing is the most critical part of the value chain that needs to be localized and batteries designed in India will pave the way,” said Vikramaditya Gourineni, executive director, Amara Raja Batteries Ltd.  

The development takes place at a pivotal moment for India’s electric transportation sector. Electric car demand is growing across the country, but there are still barriers to overcome, such as concerns about battery safety, range, and charging infrastructure. 

In an effort to address these issues, Log9 will allocate a portion of the funds generated to startups and organizations developing charging infrastructure, supporting businesses, and organizations combating global climate change.

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