Tsuyo raises INR 40 crore in Pre-Series A round led by Avaana Capital

Tsuyo Manufacturing Pvt. Ltd. has raised INR 40 crore in a Pre-Series A funding round led by Avaana Capital, a venture capital fund focused on deep-tech investments. The funds will be used to set up a new greenfield manufacturing facility for heavy commercial vehicle motors and an advanced R&D centre.

The company plans to expand its integrated powertrain capabilities through this investment. Tsuyo supplies powertrain systems to OEMs including Mahindra, Volvo Eicher, and Sonalika, covering 3- and 4-wheelers, light and heavy commercial vehicles, and off-road applications. The company holds 29 patentable innovations, including rare earth–free and hybrid magnet-based motors. Tsuyo has developed a validated powertrain platform for heavy commercial vehicles and retrofit solutions for internal combustion engine fleets.

According to Vikas Verma, Venture Partner at Avaana Capital, “Tsuyo is building the backbone of India’s energy transition. Their vertically integrated powertrain, critical for electrification across automotive and industrial applications, exemplifies the kind of indigenous, scalable innovation that will define India’s role in building globally resilient supply chains and reducing reliance on rare earth mineral based technologies. We’re proud to partner with a team that brings together deep design and engineering innovation with the operational excellence needed to scale commercially”

Tsuyo’s upcoming facility will be its third manufacturing unit and will focus on high-wattage electric motors (up to 250 kW) and transmission assemblies. It will include a vehicle testing track and end-of-line validation systems aligned with PM e-Drive and FAME standards. The new R&D centre will focus on power electronics, embedded systems, and prototype development.

“Our mission has always been to design and manufacture powertrain systems from India that compete at a global level,” said Vijay Kumar, Founder & CEO, Tsuyo. “With Avaana’s support, we’re scaling high-wattage motor production and advancing deep-tech R&D. From magnet-less designs to novel winding approaches and localized tooling, our focus is on creating more efficient, reliable, and sustainable powertrain solutions.”

Established in 2020, Tsuyo manufactures mid-drive electric motors with in-house design and development capabilities. Its product range includes SPMSM, IPMSM, ACIM, SRM, and SynRM (magnet-less) motor technologies, along with Vehicle Control Units (VCU), Transmission Control Units (TCU), DC-DC converters, gearboxes, and IoT systems. The company has filed four patents and has 25 more under development. Tsuyo collaborates with IIT Delhi and VNIT Nagpur on research and participates in academic programs to support EV engineering education. It has been selected by MeitY for the ICE-to-EV retrofit project for commercial vehicles.

According to the company, Tsuyo has delivered over 150,000 powertrain units across various EV segments in the past four years and works with more than 25 OEMs, including Hero, Mahindra, Volvo Eicher, Sonalika, Greaves, and Livguard. The company currently exports to Sri Lanka, Bangladesh, and the Philippines, with plans to expand into Southeast Asia, Japan, Korea, and Europe.

Tsuyo’s key upcoming initiatives include:

• Increasing high-wattage motor production (15 kW–250 kW) with an annual capacity of 20,000 units
• Establishing an R&D centre for embedded software and power electronics
• Expanding exports and obtaining global certifications
• Strengthening OEM partnerships
• Launching retrofit solutions for commercial vehicles (1.5T–90T)
• Targeting 7–8x growth within three years

“With the third plant and ongoing technology development, we aim to strengthen Tsuyo’s position in powertrain manufacturing from India,” Kumar added.

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