Backed by ZeroW and Mekapati Family Office, the startup eyes sintered alloys and 2,000-ton annual capacity to capitalize on India’s push for rare earth self-sufficiency.
Entellus Secures Fresh Backing to Scale Critical Tech
Entellus Industries, a deeptech manufacturing startup specializing in rare earth metals, has raised ₹50 crore (~$5.5 million) in a new funding round. The investment was led by ZeroW, the deeptech-focused fund launched by the Mekapati Family Office, promoters of the KMC Group.
The Chennai-based firm, founded in 2022 by Simha Kumar and Nagarajan Mahadeven, is targeting a vital—but underserved—segment: manufacturing NdPr metal, bonded powders, and strip-cast alloys, key inputs for permanent magnets used in EVs, defense, and electronics.
“Proving technical capabilities in rare earth metal and alloy manufacturing is non-trivial… we are the first to do it verifiably in India,” said Kumar.
Sintered Alloys, Market Rollout in Focus
Entellus plans to channel the fresh capital into two core objectives:
- Expanding into sintered alloys, a form of high-density metal produced via powder metallurgy.
- Commercializing existing products and scaling production to 2,000 tons per year.
These moves position the startup as a serious player in the permanent magnet value chain, a sector shaken by China’s export curbs and global raw material uncertainty.
Global Turbulence, National Opportunity
In 2023, China’s rare earth restrictions triggered shortages in permanent magnets, throttling output across industries. In response, India’s central government launched a ₹7,280 Cr ($815 Mn) scheme in November to boost sintered rare earth magnet production.
Entellus, by establishing early manufacturing capacity, is primed to benefit.
Permanent magnets are essential to EV drivetrains, wind turbines, aerospace systems, and high-end electronics—sectors pegged for double-digit growth through 2030.
The Race for Rare-Earth Alternatives
Even as startups like Entellus double down on rare earths, others are looking to bypass the dependency altogether.
- Chara Technologies raised ₹52 Cr in October to scale rare-earth-free motors.
- Ola Electric claimed breakthroughs in in-house motor design without rare earths.
The sector now sits at a crossroads: scale domestic magnet production or innovate away from it altogether. Can India do both?
TL;DR
Entellus Industries raised ₹50 Cr from ZeroW to scale rare earth magnet manufacturing, with a focus on sintered alloys and taking products to market. As India pushes for magnet self-reliance amid global supply risks, Entellus aims to lead local production while others explore rare-earth-free alternatives.
AI summary
- Entellus raises ₹50 Cr from ZeroW to expand rare earth magnet production.
- Plans 2,000-ton yearly output; enters sintered alloys market.
- Funding to help commercialize NdPr metal and related products.
- Taps into India’s ₹7,280 Cr scheme to boost magnet manufacturing.
- Faces competition from rare-earth-free motor startups like Chara and Ola Electric.
