Hygenco Secures Rs 50 Crore Debt Funding to Drive Green Hydrogen Innovation
Hygenco, a pioneering cleantech startup specializing in green hydrogen and ammonia production, has successfully raised Rs 50 crore (approximately $6 million) through non-convertible debentures (NCDs). This marks the company’s first debt investment this year and signals a significant step toward scaling its operations in the clean energy sector.
The funding was raised from Trifecta, with Hygenco issuing 500 debentures priced at Rs 1,00,000 each. These debentures are set to mature in 24 months, carrying an interest rate of 14.5% per annum, according to regulatory filings sourced from the Registrar of Companies. This financing round highlights Hygenco’s continued commitment to pushing the envelope in green hydrogen solutions, a vital component of India’s clean energy ambitions.
Hygenco’s Vision: Revolutionizing Green Hydrogen Production
Founded in Gurugram, Hygenco aims to be at the forefront of the green hydrogen revolution, developing and deploying commercial systems for large-scale production of green hydrogen and ammonia. The company’s solutions cater to a wide range of industries, including marine and terrestrial transportation, large-scale process industries, and even personal mobility sectors.
Green hydrogen production is crucial for reducing global carbon emissions, and Hygenco’s work is integral to India’s strategy for transitioning to cleaner energy. By utilizing renewable energy sources, Hygenco is creating a sustainable alternative to conventional hydrogen production methods, which rely on fossil fuels. The Rs 50 crore debt will allow the company to accelerate its development and deployment of these eco-friendly systems, expanding its reach in the growing clean energy market.
Partnership with Jindal Stainless and Expansion Plans
Hygenco is already making waves in the industry with its notable partnership with Jindal Stainless, which resulted in the establishment of India’s first green hydrogen plant. This collaboration marks a major milestone for the startup, providing a solid foundation for its future growth. Additionally, the company plans to raise a total of $100 million by the end of the year to further enhance its capabilities and expand its footprint in the clean energy sector.
In October 2022, Hygenco secured an initial investment of $25 million from the State Bank of India (SBI) through the Neev II Fund. This investment provided a strong financial foundation for the company, enabling it to develop innovative solutions in green hydrogen production.
Financial Outlook and Growth Strategy
Although Hygenco was in the pre-revenue stage until the end of FY23, the company has made significant progress in its operations. For the financial year 2023, Hygenco reported a loss of Rs 6.3 crore, which is typical for early-stage cleantech companies. However, the company’s successful debt raise and strong investor backing suggest it is well on its way to achieving profitability in the coming years.
The company’s co-founders, Amit Bansal, Anshual Gupta, and Aashish Gupta, collectively own 46.1% of Hygenco, while SBI’s Neev II Fund holds a 49.6% stake. This balanced ownership structure positions Hygenco well to attract further investments while maintaining strong leadership and vision in the cleantech space.
With the recent debt raise, Hygenco plans to accelerate its green hydrogen production capabilities and solidify its position as a leader in the sustainable energy market. The funds will be used to enhance technological capabilities, scale operations, and drive further innovation in clean energy solutions.
The Growing Potential of Green Hydrogen in India
India is increasingly looking to green hydrogen as a key solution for its clean energy needs. The country has set ambitious targets for renewable energy adoption, with hydrogen playing a crucial role in decarbonizing industries that are difficult to electrify, such as heavy transport, steel manufacturing, and chemical production. The Indian government has also introduced policies to incentivize the production and use of green hydrogen, further boosting demand in the sector.
Hygenco is poised to capitalize on this growing market, with its cutting-edge technology and partnerships helping to position it as a key player in India’s green energy future. The company’s innovative solutions align well with the government’s clean energy vision, providing a scalable, sustainable solution to meet the country’s long-term energy goals.
Moving Forward: Expansion and Growth
Looking ahead, Hygenco plans to continue innovating and expanding its green hydrogen solutions to serve a wide array of industries. With its current debt raise and plans for future funding rounds, the company is well-positioned to build on its existing partnerships and attract new investors to support its growth.
As it continues to scale its operations, Hygenco’s leadership team is focused on expanding the company’s reach across India and internationally, ensuring that green hydrogen production becomes a viable alternative for industries around the world. The company’s goal is to provide cutting-edge technology and sustainable solutions to drive the global transition to clean energy.
