Energy storage company Cygni Energy has announced that it has raised $12.5 million through a combination of equity and debt. As per the company’s statement, the equity funding was led by Meridian Global Ventures and the debt round by Indian Overseas Bank.

The Hyderabad-based company specialises in EV Batteries (2W & 3W) and Energy Storage Systems. It was the first company to receive recognition under the ‘Make in India’ (Start-up India) programme.

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As per various media sources, the energy storage company had recently acquired a land parcel in Telangana under the state EV policy to set up a Li-ion battery manufacturing unit.

Incubated at the ‘Incubation Cell’ of IIT Madras, the company focuses on building alternative energy storage solutions for EV 2Ws and 3Ws, and has deployed over 125MWh of storage solutions and powered over 60,000 electric vehicles.

Cygni will use the funds to kick-start product development, and business growth, hire engineering teams and set up a new manufacturing facility 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.

Venkat Rajaraman, CEO, Cygni Energy said, “The need for enhancing EV battery performance, safety and access to quality products has never been more pressing. This round of funding will help us strengthen our product offering and set up the greenfield manufacturing facility with a capacity of 1.2GWh per annum. This not only validates our belief in technology but also accelerates the scale of manufacturing."