Hyderabad-based energy storage company Cygni Energy has raised funds of USD $12.5 Million (Rs 100 Crores) through a combination of Equity and Debt. The equity funding is led by Meridian Global Ventures, and the debt by Indian Overseas Bank, a Nationalised Bank in India. The company will use the funds to fuel product development, business growth, grow the engineering division to fast-track the product development cycle and set up a new greenfield manufacturing facility in the state of Telangana.
Cygni has a technology collaboration with IIT Madras. Cygni provides solutions for EV Batteries (2W & 3W) and Energy Storage Systems (Telecom, Solar hybrid etc.). Cygni is one of the first companies to implement battery swapping in its products for dockless applications, said a statement. To date, Cygni has deployed over 125MWh of storage solutions and powered over 60,000 Electric Vehicles.
The company is currently operating a 250 MWh factory that has the capability to produce 10,000 Li-ion battery packs each month.
Cygni plans to set up a Gigafactory in Telangana. The Greenfield project will have the capability to produce 40,000 battery packs per month, with 1.2GWh annual capacity, when all the lines are fully operational.
The company has recently acquired a land parcel in Telangana under the state EV policy to create the Li-ion battery manufacturing unit.
Speaking on the announcement, Venkat Rajaraman, CEO – Cygni Energy said, “This round of funding will help us strengthen our product offering & set up the greenfield manufacturing facility with a capacity of 1.2GWh per annum. This not only validates our belief in technology but also accelerate the scale of manufacturing”.
Commenting on the development, Mr Rahul Saraogi, Managing Director of Meridian Global Ventures said, “We see Cygni take a unique position to revolutionize the energy storage market by using technology and manufacturing. The company’s rapid growth demonstrates the strong demand for best-in-class products for electric vehicles and energy storage.”
Shri Jayesh Ranjan, Principal Secretary, Govt of Telangana, said “Telangana has the best industrial infrastructure and is a leader in clean energy production. The State’s EV policy is aimed at promoting R&D and manufacturing in the Electric Vehicle and Energy Storage sector. The Electronic Manufacturing Cluster (EMC) in Maheshwaram is one of the best for this sector. We are happy that Cygni Energy has chosen to set up its Energy Storage Gigafactory at our EMC.”
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