Neuron Energy, a Mumbai-based lithium-ion battery manufacturer, has raised ₹200 million (~$2.4 million) in its pre-series A round.

The investment was led by Equanimity Investments and the Rajiv Dadlani Group. It also saw participation from Chona Family Office (Havmor Group) and Kayenne Ventures.

The funds will be used to secure ICAT certifications, invest in mold development, and strengthen the workforce by expanding the research and development team and hiring CXOs and senior management.

The funding will fuel Neuron’s expansion of Li-ion smart batteries for EV two-wheelers and three-wheelers while aiding the brand’s venture into drone batteries.

The company offers lithium-ion and lead-acid batteries specifically designed for e-bikes, e-rickshaws, and golf carts.

Commenting on the funds raised, Pratik Kamdar, CEO & Co-Founder of Neuron Energy, said the funds raised will enhance the company’s manufacturing capabilities and bolster the workforce.

Rajesh Sehgal, Managing Partner of Equanimity Investments, commented, “The EV landscape in India is evolving and is expected to gain pace in the coming years, as India moves towards a well-planned holistic trajectory by making significant progress towards an electric future. This also makes battery manufacturing a huge opportunity, as it is at the heart of the energy ecosystem transition.”

Rajiv Dadlani said, “As long-term growth investors, we recognize the enormous opportunity of the EV industry. Neuron Energy demonstrates the remarkable potential to become the market leader with their exceptional efficiency in delivering top-quality products.”

Dadlani added that the company and its founders are highly committed to delivering rigorously tested and safe-to-use li-Ion smart batteries, a key factor that has sparked significant investor interest.

In addition to the funding, Neuron Energy seeks to establish a strategic partnership with a leading EV two-wheeler manufacturer to establish a dedicated facility.

In December 2022, Neuron Energy announced it would invest ₹500 million ($6.04 million) to increase production capacity. The investment will be split into ₹350 million ($4.2 million) of working capital and ₹150 million ($1.8 million) of equity from the promoters and strategic partners.

Electric vehicle sales in India grew by 66% year-over-year to 371,340 units in the second quarter of 2023, compared to 223,293 units sold in the corresponding quarter last year.