Ahmedabad-based Naxatra Labs has successfully closed a $3 million pre-Series A funding round, led by Rainmatter, the venture investment arm of Zerodha. This investment will accelerate the development and manufacturing of Naxatra Labs’ high-efficiency electric motors for applications in electric vehicles (EVs), advanced farming equipment, and high-performance power tools.
The funding round signifies growing investor confidence in electrification technologies and Naxatra Labs’ end-to-end motor technology expertise, from electromagnetic design to production. This capital is a strategic endorsement of their vision to become a globally competitive Indian motor technology provider.
The Impact of Naxatra Labs Electric Motors Funding
- Lead Investor: Rainmatter by Zerodha, indicating a strategic focus on climate and sustainability.
- Other Investors: A cohort of angel investors and startup founders including Mohit Tandon (Delhivery), Himanshu Aggarwal (Aspiring Minds), Vijay Shekhar Sharma (Paytm), Aloke Bajpai (Ixigo), Anupam Jalote (iCEM), Narayan (Ather Energy), Soumitra Sharma (Operators Studio), and Hemant Daga (Neo Assets). These investors bring capital, expertise, and networks.
- Capital Allocation:
- Accelerate development of new motor platforms and broaden product portfolio.
- Expand engineering and operations teams.
- Ramp up manufacturing capacity to approximately 50,000 motors per month.
- Strengthen presence in international markets.
Powering the Future: Naxatra Labs’ Core Technology
- R&D Investment: Over four years of intensive research and development.
- Proprietary Technology: End-to-end motor technology covering axial and radial flux designs.
- Performance Gains:
- 10% enhancement in vehicle efficiency.
- 20% weight reduction compared to existing solutions.
- 5-8% extended operating range for EVs.
- Twice the power density, offering higher performance in a compact form factor.
- Innovation Drivers: Advanced magnet technology, sophisticated cooling methods, and groundbreaking electromagnetic designs.
- Current Product Portfolio: Motors and controllers for two-wheelers (bikes, scooters, mopeds) with power outputs from 1kW to 10kW. Versatile for farming equipment and power tools.
Scaling Production with Naxatra Labs Electric Motors Funding
The $3 million funding is critical for scaling production to 50,000 motors per month, enabling Naxatra Labs to meet growing demand across EVs, electric farming equipment, and advanced power tools, both domestically and internationally.
The Exploding Market for High-Efficiency Electric Motors
- Overall Indian Electric Motor Market: Valued at USD 15.0 billion in 2024, projected to reach USD 28.8 billion by 2035 (CAGR of 6.11% from 2025-2035).
- Growth Drivers: Industrial automation, renewable energy adoption, and EV demand.
Electric Vehicles (EVs) Driving Demand
- Indian EV Motor Market: Projected to grow from USD 0.898 billion in 2024 to USD 2.889 billion by 2030 (CAGR of ~21.5% from 2025-2030).
- Government Initiatives: Target of 30% electric vehicles on Indian roads by 2030.
- Dominant Segment: Electric two-wheelers hold ~60% market share due to lower running costs.
- Technological Advancements: Example: BYD’s e-Platform 3.0 with an 8-in-1 high-efficiency electric powertrain (89% overall efficiency).
Electrifying Farming Equipment
- Benefits: Sustainable, cost-effective alternatives to diesel machinery, addressing environmental concerns and operational expenses.
- Examples: Electric tractors (Sonalika Tiger Electric, AutoNxt X45H2, Montra E-27) offer reduced running costs, minimal maintenance, and longer operating hours.
- Naxatra Labs’ Role: Enhancing productivity in farming for cultivating, plowing, planting, irrigating, fertilizing, and harvesting with greater efficiency and lower environmental impact.
The Rise of Electric Power Tools
- India Power Tools Market (FY2024-FY2032): Projected to grow from USD 2.03 billion to USD 3.46 billion (CAGR of 6.90%).
- India Power Tools Market (2025-2035): Projected to grow from USD 1.85 billion to USD 3.8 billion (CAGR of 7.8%).
- Key Growth Drivers: Government infrastructure investments, manufacturing and automotive sector growth, DIY culture.
- Market Shift: Increasing demand for cordless and battery-powered tools, with emphasis on brushless motor technology for durability and energy efficiency.
Rainmatter by Zerodha: Investing in Impact
- Investment Philosophy: Patient, long-term capital for founders building impactful solutions for India.
- Focus Areas: Significant shift towards climate and health in recent years.
- Climate & Sustainability Interests: Agriculture, waste management, energy solutions, water management, sustainable materials. Nithin Kamath (founder of Zerodha) views climate as a “megatrend of the future.”
- 2024 Investments: Climate tech received a substantial portion.
- Distinguishing Features:
- Patient capital without short-term exit mandates.
- Founder autonomy.
- “North Star” is impact creation through partnerships.
- Investment range: ₹50 lakhs to ₹100 crores.
- Founder-friendly approach: No board seats or interference in operations.
- Support Beyond Funding: Mentorship, access to financial APIs, industry networks, product validation opportunities.
- Reinvestment Model: Profits from Rainmatter Capital are reinvested into supporting entrepreneurs and the non-profit Rainmatter Foundation, creating a cycle of innovation and impact.
Conclusion
The $3 million pre-Series A funding for Naxatra Labs, led by Rainmatter by Zerodha, validates the transformative potential of high-efficiency electric motors. Naxatra Labs is positioned to be a key player in India’s electrification journey, providing core technology for EVs, farming, and power tools. This investment empowers them to scale operations, expand their team, and establish a global footprint, showcasing India’s deeptech innovation. Naxatra Labs aims to accelerate the adoption of advanced electric motor technology, contributing to a greener and more productive economy.
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