Lohum secures $23 million in Series B funding round for battery technology venture

• ByStartupStory     |    February 9, 2024

Lohum Cleantech, a producer of clean energy transition materials through battery recycling and repurposing, has secured $23 million in its ongoing Series B funding round, led by Baring Private Equity Partners. According to a regulatory filing sourced from the Registrar of Companies, the funding round, initiated in August last year, is likely to continue with additional capital infusion. The round also saw participation from investors such as Cactus Partners, Chhattisgarh Investment Limited, Ventureast Proactive Fund, and others, including angel investors like Anish Vora, Kunal Babani, and Manas Tondon.

The board at Lohum passed a special resolution to issue 1,993 Series B1 CCPS at an issue price of Rs 9,42,467 each, aiming to raise Rs 188 crore. Baring Private Equity led the round with Rs 70 crore, followed by contributions from Cactus Partners and Ventureast Proactive Fund with Rs 30 crore and Rs 32 crore, respectively, along with other investors. Post the funding, Baring Equity holds 5% of the company, while Cactus Partners and Ventureast Proactive Fund command 3.1% and 3.2% stakes, respectively.

Lohum plans to utilize the raised capital for various purposes, including meeting capital expenditures, marketing, and general corporate business needs, as decided by the board of directors. According to the filing, the company aims to further its mission of sustainable energy transition through integrated battery recycling, raw material refining, and battery repurposing. Lohum’s technology for lithium-ion battery material recycling and extraction is touted to generate top-quality materials with zero waste, with a focus on repurposing EV batteries to create second-life energy storage systems for renewable energy storage and grid stabilization.

“The company’s Detex battery price index simplifies the process of determining accurate prices of battery materials and provides insights into future buyback prices,” states the company. Lohum’s financial performance has been impressive, with a 2.9X year-on-year revenue surge to Rs 308 crore in FY23 from Rs 106 crore in FY22. Additionally, the company posted a profit of Rs 8.88 crore during the same period. With previous funding rounds totaling $7 million in January 2021, Lohum was reportedly in talks to raise $100 million in its Series B round.

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