In a sign that India’s green hydrogen economy is shifting from policy paper to commercial reality, Bengaluru-based Green Hydrogen Startup Newtrace has secured $6.3 million in a Pre-Series A funding round to enhance its Electrolyser Technology for clean fuel production, signaling a significant shift in the sector.

Recently, a group of notable investors joined forces to support a promising funding round. Among them were HDFC Bank, Mitsui Sumitomo Insurance Venture Capital, Peak XV Partners, Aavishkaar Capital, Speciale Invest, and the Micelio Technology Fund.

This investment aims to boost the development of hydrogen technology. The funds will be used for pilot-scale manufacturing and for conducting customer trials in collaboration with industrial partners. The company is excited to prepare for its first commercial deployments of this innovative technology within the next year.

India’s hydrogen energy sector is undergoing a remarkable transformation. This investment highlights a significant shift: we’re witnessing hydrogen innovation step out of the confines of research labs and government proclamations and into the realm of investor-backed commercial ventures. It’s an exciting time as the potential of hydrogen becomes a tangible reality in the marketplace.

A Technology Breakthrough

Newtrace was established in 2021 by two engineers, Prasanta Sarkar and Rochan Sinha, who are passionate about advancing sustainable technologies. The company specializes in developing advanced materials for Electrolyser Technology, which is essential for creating hydrogen by splitting water with electricity.

Electrolysers play a crucial role in the production of Green Hydrogen. When powered by renewable energy sources, these devices generate hydrogen fuel while emitting no carbon, making them key players in the fight against climate change.

At the heart of Newtrace’s innovation is a unique electrode platform called Voltagen. This exciting technology aims to enhance the efficiency and longevity of alkaline electrolysers while helping reduce production costs. Through their work, Newtrace is contributing to a more sustainable future and paving the way for clean energy solutions.

“Green hydrogen’s cost problem is fundamentally a materials and manufacturing challenge,” Sarkar said. “Voltagen represents a new materials foundation that can improve performance and durability while bringing down the cost of hydrogen production.”

The startup operates from a 30,000-square-foot facility in Bengaluru, employing more than 45 engineers and scientists, and focuses on scaling the manufacturing of hydrogen hardware components rather than building full hydrogen systems.

Rochan Sinha said the company aims to strengthen one of the most overlooked parts of the hydrogen technology stack.

“Electrodes are one of the most critical components inside electrolysers, yet they have historically received far less innovation attention than other parts of the system,” he said. “Our goal is to change that by building a scalable materials platform for the global hydrogen industry.”

A New Generation of Green Hydrogen Startups

The Indian green hydrogen sector is experiencing a significant shift, with an increasing number of startups attracting external investment since 2023. This marks a transition from reliance on government-funded research to a dynamic landscape of venture-backed innovation.

For example, Ossus Biorenewables secured $2.4 million in a pre-Series A funding round in April 2023. This investment, led by Nikhil Kamath’s Gruhas and Rainmatter Climate, aims to enhance biomass-based hydrogen production, leveraging India’s extensive agricultural residue to generate clean hydrogen at the village level.

In another development, Pune-based HYDGEN, which specializes in Anion Exchange Membrane (AEM) electrolysers, raised $5 million in 2025 from Transition Venture Capital. This funding will enable the company to scale its manufacturing capabilities and advance its technology toward commercial validation.

H2 Carbon Zero also made headlines by raising an $850,000 seed round in 2025 to establish what it claims is India’s first gigawatt-scale hydrogen fuel cell factory. Additionally, Hygenco, a well-established player in the sector, secured INR 50 crore in debt financing in December 2024 to support its green hydrogen production under a Build-Own-Operate model at industrial campuses.

These funding rounds indicate growing investor confidence in a sector that has traditionally been dominated by government-issued Letters of Intent and large corporate proposals.

At the inaugural Green Hydrogen R&D Conference in September 2025, 25 startups presented a range of innovations, including membrane-less electrolysers, solid oxide fuel cells, AI-enhanced production techniques, and bio-hydrogen systems. This diversity highlights a developing ecosystem that extends beyond the funding headlines.

Why Hydrogen Matters for India’s Energy Future

India is driven by both climate and economic pressures to accelerate its shift toward green hydrogen. As the world’s third-largest energy consumer, the nation still heavily relies on fossil fuels, particularly in its industrial and transportation sectors.

While renewable sources like solar and wind energy are on the rise, certain heavy industries still depend on fuels that can produce extremely high temperatures or serve as chemical feedstocks. This is where hydrogen energy takes center stage.

Green hydrogen holds immense promise as it can be used in various ways:

It acts as a clean fuel for industrial processes.
It can replace fossil-based hydrogen in refineries and fertilizer plants, making these operations more sustainable.
It serves as an effective storage solution for excess renewable energy.

Currently, India consumes around six million tonnes of hydrogen each year, with almost all of it derived from fossil fuels.

By transitioning even a portion of that demand toward clean hydrogen, India could not only significantly cut its greenhouse gas emissions but also bolster its long-term energy security. This shift towards green hydrogen represents a substantial opportunity for a cleaner, more sustainable future.

Policy Support Is Accelerating the Sector

India’s journey toward green hydrogen innovation is gaining momentum, thanks in large part to supportive government policies. In 2023, the country took a significant step forward by launching the National Green Hydrogen Mission, backed by a budget of INR 19,744 crore.

This ambitious initiative aims to produce five million metric tonnes of green hydrogen annually and has the potential to attract up to INR 8 lakh crore in investments across the entire hydrogen value chain.

The mission is not just a vision but includes practical programs designed to foster innovation and boost manufacturing. Here are some key initiatives:

Incentives to encourage hydrogen production
Subsidies for producing electrolysers domestically
Pilot projects focusing on transportation and heavy industry
Funding opportunities for early-stage startups

These initiatives are beginning to make an impact, drawing both startups and established industrial giants into the green hydrogen sector. Major players like Reliance Industries and Larsen & Toubro are already making significant investments in hydrogen infrastructure and production, signaling a promising future for this sustainable energy source in India.

A Global Race for Hydrogen Technology

India’s ambitions in hydrogen production are emerging amid a highly competitive global landscape. Governments in Europe, the United States, Japan, and Australia are pouring billions of dollars into developing hydrogen supply chains and manufacturing capacities.

Meanwhile, Chinese electrolyser manufacturers currently lead the market, producing equipment that is 20 to 30 percent cheaper than competitors’ due to substantial industrial subsidies. For Indian startups, this situation highlights the importance of technological differentiation.

Advancements in electrolyser technology could ultimately decide whether India becomes a consumer of hydrogen or a significant global supplier of hydrogen systems and materials.

A Pivotal Moment for India’s Hydrogen Economy

Despite hurdles such as high costs, infrastructure challenges, and stiff global competition, the future of Green Hydrogen development in India is beginning to take shape. The country is fortunate to have a wealth of renewable energy sources, a talented pool of engineers, and an ever-increasing demand for energy.

These factors are paving the way for a promising hydrogen industry to emerge. While Newtrace’s recent $6.3 million funding round may seem modest compared to the vast needs of the global energy transition, it symbolizes something much more significant.

It reflects a new wave of dedicated engineers, scientists, and entrepreneurs actively developing innovative technologies to make hydrogen a viable option at scale.

If these efforts bear fruit, Green Hydrogen in India could shift from being merely an ambitious policy goal to emerging as one of the cornerstone industries of the nation’s clean energy future. The potential is immense, and the journey is just beginning.

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