Lohum, a pioneering battery technology startup backed by Singularity Growth, is looking to raise $100 million. The funding aims to support expansion efforts both within India and on the international stage. The company, valued at $600-650 million, plans to draw from both existing and new investors, according to insiders familiar with the strategy.
Lohum’s recent momentum follows a successful Series B funding round in March, where it secured $54 million led by Singularity Growth, bringing the company’s valuation to $419 million. To facilitate the latest funding initiative, Lohum has appointed Avendus Capital, a top-tier investment bank, signaling the formal fundraising process is gearing up, expected to launch within the next few months.
The expansion plans come at a time when the adoption of electric vehicles is experiencing a global surge, propelled by advancements in battery technology and increasing environmental awareness. Lohum aims to capitalize on this trend by expanding its manufacturing operations both domestically and internationally. “The formal fundraising process is yet to be launched. It is likely to take 5-6 months to raise the new round,” one of the sources noted.
Strategically setting its sights beyond India, Lohum plans to extend its reach into North America, the Middle East, and Europe. This follows a strong financial performance, with the company closing FY24 with over $500 crore in topline revenue, a significant increase from ₹300 crore in FY23. This financial upturn is fueled by the company’s innovative approach to battery recycling and repurposing, which has garnered considerable interest from investors.
Founded in 2017 by entrepreneur Rajat Verma, Lohum has steadily risen as a notable player in the battery sector, accumulating about $63 million in equity funding to date. Its investment efforts have notably included the setup of a 1 GW recycling unit and the capability to repurpose 300 MW of EV batteries annually.
The company offers a comprehensive battery lifecycle management ecosystem, which includes the recycling, repurposing, and refining of transition materials. Lohum specializes in the production of battery-grade materials such as lithium salts, cobalt, and nickel, essential to the battery manufacturing supply chain.
Lohum’s operational expansion plans are not limited to financial growth but also geographical, with the company recently announcing the establishment of large integrated facilities in Tamil Nadu, the UAE, the US, and Europe. These facilities will complement its existing plants in Delhi-NCR and Gujarat, enhancing its capacity to meet the growing demand for EV batteries.
The demand for Li-ion batteries, which constitute 30-50% of the cost of EVs, has surged following exponential growth in the EV market. This demand is driven by parity in total cost of ownership, regulatory support, and the availability of superior products. According to a report by Avendus Capital, the demand for Li-ion batteries in India is expected to exceed 235 GWh by 2030. Moreover, the battery recycling and reuse market is projected to grow 20-fold, reaching $2 billion by FY30, fueled by increasing EV penetration and the critical need to conserve and recover rare materials such as lithium, nickel, and cobalt.
As Lohum steers towards its ambitious $100 million fundraising goal, the enthusiasm within the investment community is evident, reflecting the broader industry trends and the company’s robust growth trajectory. This development positions Lohum as a key contributor to the global transition towards sustainable energy solutions, marking it as a company to watch in the evolving landscape of battery technology.
