Newtrace Raises $6.3M from HDFC Bank and Mitsui to Scale Green Hydrogen Electrode Technology

March 17, 2026

Green hydrogen has long been hailed as the clean fuel of the future—a way to decarbonize hard-to-abate sectors like steel, refining, fertilizers, and heavy transport. By using renewable energy to split water into hydrogen and oxygen, it offers a path to zero-emission industrial processes.

But there has always been a catch: cost.

Green hydrogen currently costs between $4 and $10 per kilogram, compared to around $2 for conventional “grey” hydrogen produced from fossil fuels . A large share of this cost comes from losses in the electrolyser stack, especially the electrode .

Enter Newtrace.

The Bengaluru-headquartered deep-tech startup has developed breakthrough electrode technology that promises to make green hydrogen significantly more affordable. And now, with a fresh infusion of capital from some of India’s most respected financial institutions, it is poised to scale.

The Funding Round: $6.3 Million Led by HDFC Bank and Mitsui

Newtrace has successfully raised $6.3 million (₹56.93 crore) in a Pre-Series A funding round . The round was led by HDFC Bank Limited and Mitsui Sumitomo Insurance Venture Capital , marking a significant vote of confidence from mainstream financial institutions in India’s climate-tech ecosystem.

The round also saw participation from a stellar lineup of investors:

Peak XV’s Surge (formerly Sequoia India’s early-stage program)
Aavishkaar Capital
Speciale Invest
Micelio Technology Fund
Angel investors Manish Prataprai Gandhi and Renu Manish Gandhi

The transaction valued the company at approximately ₹2,370 million (about $30 million) post-money . HDFC Bank invested ₹49 million, while Mitsui Sumitomo Insurance contributed ₹43.5 million .

What Newtrace Builds: Voltagen Electrodes

Founded in 2021 by Prasanta Sarkar (CEO) and Rochan Sinha (CTO)—both PhD holders with backgrounds in aerospace and applied physics—Newtrace develops advanced electrode technology for electrolysers .

The company’s flagship product is Voltagen, a proprietary advanced electrode technology designed for alkaline water electrolysers . Here’s what makes it special:

1. Drop-In Replacement

Voltagen is designed as a drop-in replacement for existing electrodes, allowing electrolyser manufacturers and hydrogen producers to upgrade system performance without redesigning their equipment . This dramatically lowers the barrier to adoption.

2. Improved Energy Efficiency

The electrodes are engineered to improve energy efficiency, meaning more hydrogen output per unit of electricity input. This directly addresses the largest operating cost in green hydrogen production.

3. Extended System Lifetime

By enhancing durability under real-world operating conditions, Voltagen extends the lifetime of electrolyser systems, reducing maintenance costs and improving overall economics.

4. Cost Reduction

The ultimate goal is to reduce the levelized cost of hydrogen (LCOH) , making green hydrogen competitive with grey hydrogen and accelerating its adoption across industries.

“We built Newtrace to address the most critical component of the electrolyser stack,” said Rochan Sinha, CTO and co-founder. “Our focus now is on translating our technology into reliable manufacturing that can serve the hydrogen economy” .

The Technology Advantage: Materials Science Innovation

What sets Newtrace apart is its deep focus on materials science. As CEO Prasanta Sarkar explains, “Green hydrogen’s cost problem is fundamentally a materials and manufacturing challenge. Voltagen represents a new materials foundation that enables the efficiency and durability required to make green hydrogen cost-competitive” .

The company has also commercialized membraneless electrolyser technology as part of its broader platform, demonstrating a commitment to comprehensive innovation in the electrolyser stack .

How the Funding Will Be Used

With the fresh capital, Newtrace has a clear roadmap for the next phase of growth :

Pilot-Scale Manufacturing: Scaling up from lab-scale prototypes to pilot manufacturing capabilities.
Customer Validation: Working with customers to validate products in real-world conditions.
Supply Agreements: Securing commercial agreements with electrolyser manufacturers and hydrogen producers.
Expansion of Engineering Capacity: Growing the team and infrastructure to support larger-scale production.
Global Validation: Validating products with customers across China and Europe .

The company expects to begin initial commercial deliveries of Voltagen electrodes within the next 12 months .

Traction and Partnerships

Newtrace has already made significant strides in building relationships with key players in India’s energy ecosystem. The company has deployed pilot systems with public sector oil and gas companies such as BPCL and ONGC .

It is also currently in discussions with major electrolyser manufacturers, including Reliance and Larsen & Toubro , positioning itself as a key supplier to India’s growing electrolyser manufacturing ecosystem.

The company operates a 30,000-square-foot technology centre in Bengaluru and employs more than 45 engineers and scientists .

Why This Matters: India’s Green Hydrogen Mission

Newtrace’s funding comes at a critical time for India’s clean energy ambitions. The government has launched the National Green Hydrogen Mission, which targets production of 5 million metric tonnes of green hydrogen annually by 2030 .

The mission includes ₹19,744 crore in incentives for electrolyser manufacturing and hydrogen production . This policy push is creating a massive opportunity for domestic innovators like Newtrace.

“The global green hydrogen market is projected to reach $38.1 billion by 2029 and $1.4 trillion annually by 2050” . Less than 1% of hydrogen produced today is green, highlighting the enormous growth potential.

The Investor Perspective: Strategic Confidence

The participation of HDFC Bank, one of India’s largest private sector banks, is particularly significant. It signals that mainstream financial institutions are increasingly willing to back deep-tech, hardware-intensive climate solutions.

Similarly, Mitsui Sumitomo Insurance Venture Capital brings a global perspective and could open doors for Newtrace in international markets, particularly Japan and broader Asia.

The involvement of Peak XV’s Surge, which has backed numerous successful Indian startups, adds further validation. Peak XV (formerly Sequoia India) has a track record of identifying and nurturing category-defining companies.

The Competitive Landscape

Newtrace is not alone in pursuing the green hydrogen opportunity, but its focus on the electrode stack—the most critical component of the electrolyser—gives it a unique position.

Other Indian startups in the space include Ohmium, HYDGEN, and Avaada Group , all building solutions to support India’s green hydrogen mission. However, Newtrace’s component-focused approach (rather than building complete electrolyser systems) positions it as a potential supplier to multiple OEMs, creating a different business model.

As CEO Sarkar told ET, “Right now most companies are licensing electrolyser technology from Europe or China and setting up manufacturing plants. But the core materials and components are still not developed locally” . Newtrace aims to fill this gap.

The Bigger Picture: Climate-Tech Momentum

Newtrace’s funding is part of a broader wave of investment in Indian climate-tech startups.

Varaha recently raised $45 million from WestBridge Capital for its carbon removal projects .
Optimist secured $12 million from Accel and Arkam Ventures for energy-efficient air conditioners designed for Indian conditions .
The government has announced a ₹100 crore R&D scheme to back innovative green hydrogen startups .

This momentum reflects growing recognition that addressing climate change requires not just policy but also technology innovation—and that Indian startups can play a leading role.

The Road Ahead

With $6.3 million in fresh funding and backing from marquee investors, Newtrace is well-positioned to scale. The next 12-18 months will be critical as the company:

Transitions from pilot-scale to commercial manufacturing
Secures supply agreements with electrolyser OEMs
Validates its technology with customers in India and globally
Builds the team and infrastructure for growth

If successful, Newtrace could become a key player in the global green hydrogen supply chain—helping India not just consume clean energy, but also export the technology that makes it possible.

The Final Word

Newtrace’s $6.3 million funding round is more than just a financial milestone. It is a validation of India’s potential to lead in deep-tech climate innovation. By tackling the fundamental cost challenge of green hydrogen at the materials level, Newtrace is addressing one of the most critical problems in the energy transition.

With support from HDFC Bank, Mitsui, Peak XV, and others, the company has the resources and credibility to scale. The journey from lab to commercial deployment is never easy, but Newtrace has the technology, team, and backing to succeed.

For India’s climate-tech ecosystem, this is a moment of pride—and a sign of even bigger things to come.