Battery recycling company Lohum raises $54 million in Series B funding

Battery recycling and reuse company Lohum Cleantech has raised ₹450 crore (about $54 million) as a part of its ongoing Series B round of funding, according to multiple media reports quoting regulatory filings and other sources.

Post allotment, experts estimate the company has a valuation of around ₹3,500 crore. Lohum, which also repurposes EV batteries for use in battery energy storage systems, said it would use these proceeds for capital expenditure, marketing, and general corporate purposes, besides expanding operations in North America, the EU, the Middle East, Africa, and Asia.

Rajat Verma, founder and CEO of Lohum, said of the funding: "We are thrilled to be equipped with the necessary resources for the next stage of our development." 

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Lohum kicked off its Series B funding round in August last year with the aim of raising $100 million. Documents with the Registrar of Companies show the board recently passed a special resolution to issue 844 compulsory convertible preference shares at just above ₹1.41 million each to raise ₹119 crore.

Singularity Growth led that tranche with ₹55 crore, according to the filings. Yash Kela, Chief Investment Officer at Singularity Growth, lauded Lohum's "constant techno-commercial competence" to optimize the cost downwards, adding "Battery scrap is a very viable way for India to source the required materials."

Vyoman India and Baring Private Equity chipped in ₹11 crore and ₹10 crore, respectively, to the recent tranche, while angel investors Mukul Mahavirparasad Agarwal and Madhuri Madhusudan contributed ₹11 crore and ₹10 crore. Baring Private Equity now holds 5.58 percent in the company, while Cactus Partners owns 2.89 percent and Singularity Growth Opportunities owns 1.62 percent.

Separately, Lohum's board has passed another resolution to issue 2,501 debentures to the debt fund Stride Ventures, which will raise another ₹25 crore.

Lohun, which claims to be one of the largest producers of energy transition materials, says its recycling process regenerates top-quality materials without waste. The company claims to have offset over 65,000 tonnes of CO2 equivalent emissions as of September 2023, and projects saving 4 million tonnes of CO2 equivalent (equal to the CO2 emissions of 15 million flights between Delhi and Mumbai) by 2026.