Chennai-based deep-tech manufacturing startup Entellus Industries has raised ₹50 crore (around $5.5 million) in its second funding round, led by ZeroW, as it looks to scale up domestic production of critical rare earth materials.
The latest capital infusion follows Entellus’ earlier $12 million fundraise from Social Capital, which was used to establish manufacturing facilities for neodymium praseodymium (NdPr) metal and bonded powder alloys.
Use of Proceeds
Entellus said the fresh funding will be deployed primarily towards capital expenditure, including:
- Expanding manufacturing into sintered rare earth alloys
- Commercialising its existing rare earth metal and alloy products
- Scaling operations to support magnet-grade materials
Following the expansion, the company expects to enable production capacity of around 2,000 tonnes of permanent magnets annually.
Business and Technology Focus
Founded in 2022, Entellus focuses on manufacturing rare earth metals and alloys, including NdPr metal, bonded powders and strip-cast alloys. These materials are critical inputs for permanent magnets used across sectors such as:
- Electric vehicles
- Wind energy
- Defence and aerospace
- Advanced electronics
The company is currently setting up its manufacturing operations in Tamil Nadu, aligning with India’s broader push to localise supply chains for strategic materials.
Investor Perspective
ZeroW, the lead investor in the round, is backed by the Mekapati Family Office, promoters of the KMC Group. The investment firm focuses on deep-tech and emerging sectors, including advanced manufacturing, clean energy and strategic materials.
Why It Matters
India remains heavily dependent on imports for rare earth materials used in clean energy and mobility technologies. Entellus’ expansion comes at a time when governments and industries are seeking alternatives to concentrated global supply chains, particularly in magnet materials critical to EVs and renewable energy systems.
The funding positions Entellus to play a larger role in India’s rare earth manufacturing ecosystem, as demand for domestic, secure and scalable supply continues to rise.
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