India Tech Report

Tag: economy

  • China expands restrictions on rare earth mineral exports

    China expands restrictions on rare earth mineral exports

    Daily brief on deep tech and climate tech news from India and around the world.

    illustrative image of an automotive assembly line. China controls over 90 percent of the processing capacity of rare earth minerals needed in magnets that go into EVs. Its tightening restrictions are impacting global supply chains.

    China tightens rare earth export controls

    China has expanded its restrictions on rare earth exports to safeguard national security and interests, a move seen as Beijing strengthening its leverage in trade talks with the US. The new rules add five more rare-earth elements to the existing control list, bringing the total to 12, Reuters reports. Export licenses will now be required for the production technologies of these minerals and for their overseas use, including for military and semiconductor applications.

    China is seeking assurances from India that rare earth magnets supplied by it will only be used locally for civilian purposes, and also that they will not be exported to the US, Economic Times reports.

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    India targets 5MMT annual hydrogen output by 2030

    India’s Petroleum and Natural Gas Minister, Hardeep Singh Puri, said that the country’s “Hydrogen Age has begun,” with a target to produce 5 million metric tonnes of green hydrogen annually by 2030, ET Energyworld reports. This would account for 10% of the global market. A key project is the NTPC Green Hydrogen Hub near Visakhapatnam, which will be one of the country’s largest integrated green hydrogen facilities. The government’s National Green Hydrogen Mission has an outlay of Rs. 19,744 crore to help achieve these goals.

    Andhra Pradesh forms hydrogen advisory panel

    The Andhra Pradesh government has formed a high-level advisory committee to promote the green hydrogen initiative ‘Green Hydrogen Valley – Amaravati,’ The Hindu reports. The panel, co-chaired by Dr. V.K. Saraswat and Chief Secretary K. Vijayanand, will guide the state’s efforts in technology adoption, research, and infrastructure development. The goal is to make Andhra Pradesh India’s largest green hydrogen hub by 2030, contributing to the country’s sustainable hydrogen economy.

    Tokamak Energy and Gauss Fusion partner to advance fusion

    Tokamak Energy and Gauss Fusion have announced a strategic collaboration to accelerate the commercialization of fusion technology. The partnership will focus on advancing high temperature superconducting (HTS) magnets. This alliance brings together Tokamak Energy’s expertise in HTS technology with Gauss Fusion’s leadership in industrializing fusion energy. The companies aim to pool their industrial know-how to accelerate the path to the first generation of European fusion power plants.

    Aavishkaar Group launches defence and deep-tech fund

    Aavishkaar Group has partnered with Jamwant Ventures to launch the ‘Jamwant Ventures Fund 2’, India’s first veteran-led defence and deep-tech fund. The new fund, targeting a corpus of INR 500 crore, is the first initiative under Aavishkaar’s new ‘OneAavishkaar’ platform. The partnership aims to provide catalytic capital and strategic mentorship to indigenous startups, empowering them to drive innovation for national security.

    Newtral raises funds for global expansion

    Newtral Technologies, a climate-tech startup in Bengaluru, has raised $600,000 in funding from NOW Accelerate, Indian Startup Times reports. The capital will help Newtral expand its sustainability platform and prepare for a Series A funding round. As part of the partnership, NOW will provide venture-building resources and expertise to help Newtral scale its platform, which helps businesses measure, report, and reduce their emissions.

  • The EV opportunity in India: 10 takeaways from a conversation with Kunal Khattar

    The EV opportunity in India: 10 takeaways from a conversation with Kunal Khattar

    In this week’s episode of In Conversation, I spoke with Kunal Khattar, founding managing partner at AdvantEdge Founders, a ‘sector-focused’ early-stage VC firm in New Delhi that’s well known for backing founders in the EV and mobility sectors in India.

    AdvantEdge is into its 10th year now and known for backing startups like Rapido, Chalo, ZingBus, Park+, Baaz, Shuttl, and Exponent Energy, with close to 40 companies in its portfolio across its first two funds. The firm is close to announcing the first close of its third fund which has a targeted total of $75 million.

    Kunal says his mission is to foster a 100 successful entrepreneurs in the mobility space. We discussed a range of connected topics, including why he expects the EV space to hit the J-curve growth stage over the next three to five years, how replacing the overall ICE economy in India is a trillion-dollar opportunity, and the rise of deep tech and new solutions like clean hydrogen in India’s mobility space.

    Here are my top 10 takeaways.

    1. AdvantEdge’s sector focus and founder-first philosophy

    Khattar explains that AdvantEdge Founders was built with a clear mission: to create 100 successful founders, not just unicorns or high returns. The fund’s North Star metric is founder success, and this ethos shapes everything from team titles to investment decisions. AdvantEdge views itself as a startup, with an operator’s mindset, emphasizing hands-on support and deep partnership with entrepreneurs throughout their early journeys.

    2. India’s $1 trillion EV opportunity and the Suzuki 2.0 moment

    Khattar draws a parallel between India’s auto sector transformation after Suzuki’s entry and the current EV revolution. He believes the transition from internal combustion engines (ICE) to electric vehicles could create $1 trillion in market value across OEMs, component suppliers, dealerships, financing, insurance, and energy distribution — mirroring the ecosystem Suzuki built, but now cantered on electrification and new business models.

    3. Prioritizing commercial vehicle electrification for maximum impact

    The fund’s thesis is to focus on electrifying commercial vehicles —two-wheelers, three-wheelers, buses, and trucks — because they represent only 10 percent of vehicles but account for 70 percent of energy consumption and emissions. Khattar argues that targeting commercial fleets first delivers greater environmental, economic, and social returns, including reduced oil imports and improved livelihoods for millions dependent on these vehicles.

    4. India’s unique mobility landscape shapes investment strategy

    Unlike the US or China, India’s mobility market is dominated by two- and three-wheelers, buses, and commercial vehicles. AdvantEdge avoids direct comparisons with Western markets and instead focuses on form factors where India is already a global leader. This approach enables the fund to back solutions tailored to Indian needs and scalable across similar emerging markets.

    5. The “picks and shovels” approach to building the EV ecosystem

    AdvantEdge invests in the enabling infrastructure of the EV transition — what Khattar calls “picks and shovels” companies. These include EV component makers, charging networks, financing and leasing platforms, insurance providers, and energy distribution businesses. The goal is to support the foundational B2B solutions that will underpin the entire EV value chain, rather than just consumer-facing brands.

    6. Timing investments for J-curve growth and sector cycles

    Khattar emphasizes the importance of entering sectors at the right time — when J-curve growth is imminent but before valuations become overheated. AdvantEdge is willing to invest in pre-revenue, pre-product companies at the earliest stages, drawing on its operational expertise to help them reach product-market fit. This disciplined timing avoids the pitfalls of entering too early or too late in sector cycles.

    7. Deep tech and problem-driven innovation are key differentiators

    The fund seeks out deep technology startups that solve fundamental barriers to EV adoption, such as charging speed, range anxiety, and cost. For example, Exponent Energy, a portfolio company, developed proprietary tech to fully charge EVs in under 15 minutes—addressing multiple pain points for commercial operators and accelerating EV adoption in India’s unique market context.

    8. Collaborative ecosystem building with other funds and founders

    AdvantEdge actively collaborates with larger funds, global investors, and its own portfolio founders to build a thriving ecosystem. “It takes a village,” he says, and believes in sharing research, co-investing, and using complementary strengths is essential. The value of this network compounds with each new investment, creating a snowball effect of knowledge and opportunity.

    9. Pragmatic view on hydrogen and next-gen battery tech

    Khattar is sceptical about the near-term disruption potential of hydrogen and solid-state batteries in India. He argues that such technologies are at least a decade away from mainstream adoption and that India should focus on indigenous innovation suited to its market realities, rather than chasing the latest breakthroughs from advanced economies.

    10. Building for India, not benchmarking against China or the West

    Khattar urges Indian founders and investors to avoid direct comparisons with China or the US. Instead, he advocates for building solutions that address India’s unique challenges and opportunities, tapping local strengths in two and three-wheeler markets and focusing on incremental progress. The goal is to create a better India, not to replicate foreign models.

  • India approves $12 billion R&D and I fund, Loopworm’s insect protein tech, Aureka’s sustainable diamonds get Peak XV sparkle, and more

    India approves $12 billion R&D and I fund, Loopworm’s insect protein tech, Aureka’s sustainable diamonds get Peak XV sparkle, and more

    Daily brief on deep tech and climate tech news from India and around the world

    Rajiv Ganth, founder and CEO, CIMware, is leading innovation that can help make data centre power use more efficient and therefore boost sustainability.

    Google signs landmark deal with Commonwealth Fusion Systems to commercialize fusion energy

    Google has entered its first commercial fusion energy agreement, committing to purchase 200 megawatts of clean power from Commonwealth Fusion Systems’ (CFS) inaugural ARC (affordable, robust and compact) plant in Virginia, expected to go online in the early 2030s.

    The partnership deepens Google’s investment in CFS, a Massachusetts-based MIT spinout, and includes an option to offtake power from future ARC facilities. The move signals growing confidence in fusion’s potential to deliver scalable, carbon-free electricity to meet surging energy demand from big tech data centres.

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    Omnisent secures $3 million to pioneer acoustic AI for industrial intelligence

    Omnisent, a sound technologies and AI startup in Munich, Germany, has raised $3 million in a pre-seed round led by Atlantic Labs, Tech Funding News reports.

    The startup, founded in late 2024 by Robin Daiber, Ann-Kristin Balve, and Adrien Jathe, has developed a platform that uses proprietary ultra-low-power sonic sensors and a large acoustic AI model to convert industrial noise into real-time insights, targeting inefficiencies like compressed air leaks.

    The fresh funds will support R&D, team growth, and a commercial launch in Q4 2025, as Omnisent aims to expand into energy, defence, and smart cities.

    CIMware raises $2.3 million to tackle data center scalability with sustainable smart switch

    CIMware, a data centre infrastructure venture in Bengaluru, has raised $2.3 million in Pre-Series-A funding led by Transition VC, the company said in a press release. CIMware was founded in 2019 by Rajiv Ganth, a veteran in distributed systems and data centre engineering.

    Ganth, who has previously worked at companies including LSI and Dell EMC, leads CIMware’s push to address data centre scalability and efficiency with its patented Composable Infrastructure Module, a converged smart switch built in India. CIMware says its technology can reduce power consumption by up to 80 percent, offering a more sustainable alternative for AI-driven workloads, according to the release.

    Loopworm raises $3.25 million to commercialize silkworm-based protein platform

    Loopworm, a biomanufacturing startup in Bengaluru, has raised $3.25 million in a pre-Series-A round led by WaterBridge Ventures and Japan’s Enrission India Capital, Entrackr reports.

    Founded by IIT-Roorkee alumni Ankit Alok Bagaria and Abhi Gawri in 2019, Loopworm has developed a reactor-free system using silkworms to produce recombinant proteins for diagnostics and animal vaccines, promising faster, cheaper, and more sustainable production. Backed by investors including Omnivore, the company operates a 6,000-tonne-per-year insect processing facility and exports to Europe, South America, and ASEAN markets.

    Aukera raises $15 million led by Peak XV Partners to expand lab-grown diamond retail

    Aureka, a lab-grown diamond jewellery startup, has raised $15 million in growth capital led by Peak XV Partners, with participation from Fireside Ventures, Sparrow Capital, Prath Ventures, and Alteria Capital.

    The Bengaluru-based company will use the funds to expand its retail footprint, enhance product offerings, and strengthen its omnichannel presence. Founded two years ago by Lisa Mukhedkar and Kumar Saurabh, Aukera operates 13 stores nationwide and aims to lead India’s rapidly growing lab-grown diamond market amid rising demand for sustainable luxury.

    India’s Cabinet approves $12 billion R&D and innovation fund to boost private R&D in strategic sectors

    India’s Union Cabinet, chaired by Prime Minister Narendra Modi, has approved an R&D and Innovation (RDI) Scheme, establishing a Rs. 1 lakh crore ($12 billion) fund to catalyze private sector investment in research, development, and innovation across strategic and sunrise sectors.

    The scheme offers long-term, low or zero-interest financing to overcome funding barriers and promote technology adoption, self-reliance, and competitiveness, according to a press release yesterday.

    A two-tier funding structure will be managed by the Anusandhan National Research Foundation, with the Department of Science and Technology as the nodal agency. The RDI Scheme aims to finance transformative projects, support acquisition of critical technologies, and facilitate a Deep-Tech Fund of Funds, positioning India for global leadership in innovation as it targets developed nation status by 2047.

    In Conversation

    In-depth conversations with entrepreneurs, investors, industry leaders and other stakeholders building India’s deep tech and climate tech ecosystems.

  • Rare-Earth free electric motors: Six takeaways from a conversation with Bhaktha Keshavachar at Chara

    Rare-Earth free electric motors: Six takeaways from a conversation with Bhaktha Keshavachar at Chara

    Bhaktha Ram Keshavachar, founder and CEO of Chara Technologies in Bengaluru, is leading an effort to develop motors that don’t need the conventional permanent magnets, whose make up includes rare-Earth metals, the processing of which is almost entirely controlled by China. The mining and processing of these minerals also has an environmental impact.

    Bhaktha and his fellow founders Ravi Prasad and Mahalingam Koushik, bring decades of industry expertise to their venture. Founded in 2019, Chara has engineered what are called reluctance motors. Unlike the traditional motors, reluctance motors don’t have permanent the magnets that need rare Earth minerals such as neodymium or samarium. Magnetic fields are instead created by the electric current in the windings around the stationary part (stator) of these motors.

    In my recent conversation with him, Bhaktha discusses Chara’s technical pivots, manufacturing milestones, industry partnerships, and the challenges of deep tech entrepreneurship in India. He also shares insights on talent development, the evolving ecosystem, and Chara’s plans for global expansion. Here are my top six takeaways.

    1. Rare earth-free motor technology addresses a critical global supply chain risk

    Most high-efficiency electric motors today rely on rare earth magnets, which are expensive, environmentally damaging to extract, and subject to geopolitical risk — especially as China controls over 90 percent of the global supply chain. Chara’s technology, based on reluctance motors, eliminates the need for rare earths, offering a strategic solution to this problem.

    1. Product-market fit is emerging fastest in off-highway and industrial applications

    While Chara initially targeted India’s large two-wheeler and three-wheeler market, Bhaktha notes that the most immediate traction has come from off-highway uses such as agricultural equipment, golf carts, turf care machines, and compressors. These sectors value Chara’s high-efficiency, rare earth-free motors and have helped the company build early credibility.

    1. Strategic partnerships and manufacturing scale are key to customer confidence

    A major milestone for Chara is its partnership with Greaves Cotton, which will manufacture and distribute Chara’s motors under license. Bhaktha explains that large customers are wary of “startup risk” and prefer established suppliers; this partnership provides the scale and distribution needed to win bigger deals and accelerate adoption.

    1. Chara’s deep R&D helped the startup develop a market-ready product

    The company’s early years involved a challenging pivot from switched reluctance motors, which proved too noisy, to synchronous reluctance motors. Chara invested heavily in core R&D, especially in software algorithms to control non-linear motor behavior, resulting in a certified, field-deployed product that matches the performance of traditional motors.

    1. Building a deep tech team in India requires nurturing core engineering talent

    Bhaktha notes a shortage of experienced engineers in electromagnetics and mechanical domains, as most graduates prefer software careers. Chara addresses this by hiring young engineers with some experience and training them further in the requisite foundational physics and engineering, which is essential for their multidisciplinary innovation.

    1. Chara’s next phase is focused on scaling sales and global expansion

    With technical challenges largely solved and products certified, Bhaktha says Chara’s top priority is now sales and deployment — both in India and internationally. The company is targeting new product development for larger vehicles and is actively pursuing business in Europe and the US, tapping global interest in rare earth alternatives and recent geopolitical shifts.

  • Rare-Earth free: Bhaktha Keshavachar on Chara’s strategic mission, one motor at a time

    Rare-Earth free: Bhaktha Keshavachar on Chara’s strategic mission, one motor at a time

    My guest today is Bhaktha Ram Keshavachar, founder and CEO of Chara Technologies, in Bengaluru. Chara is at the forefront of a technological shift that could reshape for the better India’s electric mobility landscape, and potentially make an impact overseas as well.

    The mission is both urgent and ambitious: to build high-performance electric motors that are free of rare earth magnets — a critical component in most electric vehicles and industrial machines today.

    Bhaktha and his fellow founders Ravi Prasad, the chief motor designer, and Mahalingam Koushik, the CTO at Chara, are engineering veterans from industry, each one bringing decades of experience to their entrepreneurial journey.

    It started in late 2019, just as the world was heading into the uncertainty of the Covid pandemic. Recognizing the strategic risks posed by global dependence on rare earth minerals — with China controlling about 90 percent of the global refining and processing — and also the environmental impact, he and his team set out to engineer an alternative.

    The result is a new generation of reluctance motors, designed and manufactured in India, that match or surpass the efficiency of traditional permanent-magnet motors, while sidestepping the environmental and geopolitical pitfalls of rare earth mining.

    L-R: Ravi Prasad, chief motor designer, Mahalingam Koushik, CTO, and Bhaktha Keshavachar, CEO at Chara Technologies are building a new generation of made-in-India reluctance motors

    In this conversation, Bhaktha shares the technical and business challenges Chara has overcome — from early R&D pivots and tackling the challenge of torque ripple in reluctance motors, to building a pilot production facility and securing industry partnerships, including a manufacturing and distribution alliance with Greaves Cotton.

    He discusses the hurdles of deep tech entrepreneurship in India, the evolving talent landscape, and Chara’s plan to take its products global.

    Whether you’re a founder, investor, engineer, or simply curious about the future of cleaner technology, this episode offers an example of how Indian deep tech innovation is rising to meet one of the challenges of our era: building a sustainable, secure, and scalable electric future — one motor at a time.

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