Battery Recycling Leader Lohum Secures $23 Million in Funding

Lohum Cleantech, a frontrunner in clean energy materials production through battery recycling and repurposing, has secured $23 million in its Series B1 funding round. Baring Private Equity Partners led the investment, which took place in August 2023. Sources suggest this might be a precursor to an even larger funding round.

Several other investors participated in the round, including Cactus Partners, Chhattisgarh Investment Limited, Ventureast Proactive Fund, Michael B Schwab Living Trust, Singularity Growth, Stride Ventures, and a group of angel investors.

Lohum issued 1,993 Series B1 CCPS at an issue price of Rs 9,42,467 each, aiming to raise a total of Rs 188 crore (approximately $23 million). Regulatory filings reveal that Baring Private Equity led the round with an investment of Rs 70 crore, followed by significant contributions from Cactus Partners (Rs 30 crore) and Ventureast Proactive Fund (Rs 32 crore).

Funds to Fuel Growth

The six-year-old company plans to utilize the raised capital for various purposes, including capital expenditures, marketing initiatives, and general corporate needs, as determined by the board of directors. This funding round strengthens Lohum’s financial position, with Baring Equity acquiring a 5% stake in the company. Cactus Partners and Ventureast Proactive Fund also secured ownership percentages of 3.1% and 3.2%, respectively.

Sustainable Solutions for a Greener Future

Lohum stands out as a major player in the production of sustainable energy transition materials. Their unique approach integrates battery recycling, raw material refining, and repurposing, minimizing environmental impact. Notably, their lithium-ion battery recycling and extraction technology boasts zero-waste production while regenerating high-quality materials. Additionally, Lohum repurposes used electric vehicle batteries to create second-life energy storage systems (ESS) that support renewable energy storage and grid stabilization.

The company’s Detex battery price index offers a valuable tool for determining accurate battery material pricing while also providing projections for future buyback prices.

Building on a Strong Foundation

This funding round comes after Lohum’s previous successful capital raise of $7 million in January 2021. Reports also suggested they were in talks for a potentially larger $100 million Series B round.

With a 2.9x year-over-year sales rise in FY23—from Rs 106 crore to Rs 308 crore—Lohum has demonstrated remarkable financial performance. They also achieved profitability, recording a net income of Rs 8.88 crore in FY23.