Lohum Cleantech, a leading producer of sustainable energy transition materials through battery recycling and repurposing, has successfully raised $23 million in its Series B funding round. The funding round, led by Baring Private Equity Partners, signifies a significant milestone in Lohum’s journey towards advancing clean energy solutions and promoting environmental sustainability.
In addition to Baring Private Equity Partners, the Series B round saw participation from notable investors, including Cactus Partners, Chhattisgarh Investment Limited, Ventureast Proactive Fund, Michael B Schwab Living Trust, Singularity Growth, Stride Ventures, and various angel investors. The collective support from these investors underscores the growing recognition and confidence in Lohum’s innovative approach to clean energy transition.
The funding round, initiated in August last year, is ongoing, indicating the potential for additional capital infusion in the future. Lohum’s board of directors passed a special resolution to issue Series B1 CCPS, with an issue price of Rs 9,42,467 each, aimed at raising Rs 188 crore. Baring Private Equity led the round with Rs 70 crore, followed by investments from Cactus Partners and Ventureast Proactive Fund, among others.
The infusion of funds will enable Lohum to bolster its capital expenditures, enhance marketing initiatives, and support general corporate business activities. With a clear strategic focus, Lohum aims to leverage the funding to drive innovation, expand its market presence, and further its mission of promoting sustainable energy solutions.
Lohum’s core focus lies in its integrated battery recycling and raw material refining, coupled with battery repurposing capabilities. The company’s innovative lithium-ion battery material recycling and extraction technology are designed to regenerate top-quality materials while minimizing waste. By repurposing electric vehicle (EV) batteries into second-life energy storage systems (ESS), Lohum contributes to renewable energy storage and grid stabilization efforts.
A notable aspect of Lohum’s offerings is its Detex battery price index, which facilitates accurate pricing of battery materials and provides insights into future buyback prices. This transparency and predictability are instrumental in fostering trust and confidence among stakeholders in the clean energy ecosystem.
Despite the challenges posed by the global economic landscape, Lohum has demonstrated impressive financial performance. In FY23, the company reported a remarkable 2.9X year-on-year surge in revenue, reaching Rs 308 crore from Rs 106 crore in FY22. Additionally, Lohum achieved a profit of Rs 8.88 crore during the same period, reflecting its commitment to operational excellence and financial sustainability.
Looking ahead, Lohum Cleantech remains committed to driving positive environmental impact through its innovative solutions and strategic partnerships. With the support of its investors and stakeholders, Lohum is poised to play a pivotal role in accelerating the transition towards a cleaner, greener future for generations to come.