Indigrid Technology, a fast-growing electronics systems design and manufacturing (ESDM) startup specializing in electric vehicle (EV) components, has secured USD 4 million (around ₹35.2 crore) in a fresh funding round led by its existing investor, Cactus Partners. The deal values the company at an estimated ₹600 crore post-money, underscoring strong investor confidence in its business model and growth trajectory.
A follow-on round of support
This most recent round represents a follow-on investment from Cactus Partners, a venture capital firm that invests specifically in climate-tech and sustainability-oriented companies. The firm led Indigrid’s $5 million Series A round in June 2024, and following this investment, Indigrid has raised a total of more than $12 million across its various rounds. The follow-on round demonstrates that Cactus Partners has confidence in Indigrid’s ability to deliver on its ambitious plans within India’s rapidly expanding EV ecosystem.
Planned use of funds
According to management within the Company, the new capital will be put to work in several main areas. The majority will be used for expanding capacity for production to meet growing demand from automotive and consumer electronics customers; and the remaining area will focus on automating manufacturing processes, which will improve efficiency and lower costs. The startup will also ramp up talent acquisition, particularly in engineering and operations, to support its expansion.
Additionally, the funds will help broaden Indigrid’s product portfolio and strengthen its presence not only in India but also in select international markets. By diversifying across sectors and geographies, the company aims to secure long-term stability while tapping into the global transition toward electric mobility.
Company background and offerings
Indigrid Technology was started by entrepreneurs Sameer Narang and Rishab Puri in 2015. Indigrid Technology is a full-function electronic component company with strong in-house design and production capability. The majority of the company’s work is in battery packs, motor controllers, vehicle control units (VCUs), and EV drive train components.
In recent years, Indigrid has diversified beyond automotive and entered the consumer electronics segment, responding to strong demand for high-quality, localized component suppliers. The company now counts leading domestic and global players among its customers, including Hella, Rosenberger, Sensetek, Sandhar, IFB, and Revolt.
Indigrid has manufacturing plants located in Manesar and Goa. Indigrid employs a blend of state-of-the-art products and design capability to meet the demands of increasing clients. Having two locations provides Indigrid with access to each of the automotive hubs in northern, western India, offering a competitive edge when it comes to production relative to logistics.
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Financial performance and targets
Indigrid has maintained a consistent financial momentum. It booked revenues of ₹108.5 crores in FY 2024-25. This represents close to 2x the revenue of ₹67.7 crores in the prior year. Management expects revenues between ₹350 crores and ₹380 crores in FY 2025-26 this is a greater than 3x growth.
The company currently operates at a high single-digit EBITDA margin but expects to move into double-digit margins in the next couple of years, thanks to economies of scale, automation, and improved supply chain efficiency. Achieving these targets would position Indigrid among the leading “Make in India” champions in the EV and electronics manufacturing sector.
The investor’s perspective
The ongoing support from Cactus Partners further demonstrates a solid alignment with Indigrid’s mission. Cactus Partners is a successful venture capital firm that has a history of investing in companies that clearly show product-market fit and the ability to scale. In addition to providing capital, via its GAP (Growth Acceleration Playbook), Cactus Partners provides strategic guidance, access to market, and operational expertise. For Indigrid, this support will be vital ensuring its growth is managed in a responsible and sustainable manner.
Why this funding is significant
The funding round comes as India’s EV adaptation has ramped up quickly. Government data shows that in FY24 unit sales of EVs exceeded 1.5 million units, almost double the previous year’s total sales of a billion units in EVs, a structural change to a mobility paradigm. This rate of growth places considerable amounts of stress on the domestic supply chain, enabling organizations like Indigrid who can offer reliable components manufactured locally.
Moreover, by expanding into consumer electronics, Indigrid is hedging against the cyclical nature of the auto industry and tapping into India’s booming electronics market, which is projected to reach USD 300 billion by 2026.
Challenges and opportunities
Indigrid’s current profile is optimistic, but it has a few hurdles to address as it looks ahead. First, balancing the growth in production with its quality processes will be critical to maintaining its client base and protecting its stake in the competitive EV marketplace. Also, Indigrid must manage capital expenditures with cash flow discipline to sustain its growth while ensuring it does not over-lever itself.
That said, with new funding, a strong client base and market headwinds that are trending in Indigrid’s favour, it has many advantages. If Indigrid achieves its lofty financial targets, it can be one of the companies that is considered a global manufacturer in the EV and electronics space – a real reflection of India’s ambition to be at the forefront of sustainable innovation.
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