HomeBUSINESSCygni Energy raises $12.5 million to drive growth, expansion

Cygni Energy raises $12.5 million to drive growth, expansion


NEW DELHI: Energy storage company Cygni Energy Pvt. Ltd. on Saturday said it has raised $12.5 million through a combination of equity and debt. The equity funding was led by Meridian Global Ventures and the debt round by Indian Overseas Bank, as per a company statement.

The company will use the funds to fuel product development, business growth, grow the engineering division to fast-track product development cycle, and set up a new greenfield manufacturing facility in Telangana. Cygni has technology collaboration with IIT Madras and also works with several OEMs to provide application-specific designs.

The Hyderabad-based company is working in the energy storage space across key verticals in India and has plans to set up a gigafactory in Telangana.

Currently, it operates a 250 MWh factory that has the capability to produce 10,000 li-ion battery packs each month. It also works with many leading automotive OEMs and energy companies to assist them with customized energy storage solutions.

The greenfield project will have the capability to produce 40,000 battery packs per month, with 1.2GWh annual capacity, when all the lines are fully operational. This gigafactory will help Cygni maximize its battery production, scale the current capacity by four times and contribute to the growing demand of electric vehicles in India, the company said.

The company has recently acquired a land parcel in Telangana under the state EV policy to create the country’s most-advanced li-ion battery manufacturing unit.

Venkat Rajaraman, CEO, Cygni Energy, said, “The need for enhancing EV battery performance, safety and access to quality products has never been more pressing. This round of funding will help us strengthen our product offering and set up the greenfield manufacturing facility with a capacity of 1.2GWh per annum. This not only validates our belief in technology but also accelerate the scale of manufacturing.”

Rahul Saraogi, Managing Director of Meridian Global Ventures, said, “We see Cygni take a unique position to revolutionize the energy storage market by using technology and manufacturing. The company’s rapid growth demonstrates the strong demand for best-in-class products for electric vehicles and energy storage. We are pleased to lead the investment round with Cygni and partner with them on their growth journey.”

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