Entellus Industries Secures ₹50 Crore to Expand Rare Earth Metals Manufacturing

Entellus Industries has raised ₹50 crore (about $5.5 million) in a funding round led by ZeroW, a deeptech-focused investment firm backed by the Mekapati Family Office, promoters of KMC Group, as per news reports.  

ValPro acted as transaction adviser. The company had earlier raised $12 million from Social Capital in 2022 to establish manufacturing facilities in Tamil Nadu. 

Use of Funds 

The company said the latest capital will be used for capital expenditure to expand into sintered alloys and to commercialise its existing products.  

Sintered alloys are produced using powder metallurgy, where metal powders are compacted under high pressure and heat to form dense materials. Entellus plans to scale magnet production capacity to about 2,000 tonnes per year. 

Entellus Industries Overview 

Founded in 2022 by Simha Kumar and Nagarajan Mahadeven, Entellus focuses on manufacturing rare earth metals and alloys used in permanent magnets.  

Its current products include NdPr metal, bonded powders and strip-cast alloys, which are used as inputs in magnet production. Permanent magnets are used across electric vehicles, wind turbines, defence equipment and electronics. 

Supply Chain Context 

Global supply chains for rare earth elements were disrupted last year after China imposed export curbs, leading to shortages of permanent magnets.  

These shortages affected industries such as electric vehicle manufacturing and highlighted dependence on imports for critical materials. 

Policy and Industry Developments 

In November, the Indian government launched the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets, allocating ₹7,280 crore (about $815 million) to support domestic production. Indian companies are also working on alternatives to rare earth-based components.  

Ola Electric has stated it developed rare-earth-free motors in-house. Chara Technologies raised ₹52 crore in October to set up a facility in Bengaluru for rare-earth-free motors and controllers, with ZeroW leading the round. 

Read More: Dell And NxtGen Partner to Develop Large-Scale AI Computing Facility in India! 

Conclusion 

Entellus Industries plans to expand production capacity and bring existing products to market using the latest funding, amid policy measures and supply chain shifts affecting the rare earth magnet sector. 

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