Energy Storage Startups Chase a Bold $65M Funding Wave

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Avinash
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Six Indian battery-tech firms are chasing fresh capital as investors rotate from crowded EV manufacturing toward charging networks, grid storage and industrial energy systems.

Quick Take

  • Indian energy storage startups are in talks to raise close to $65 Mn (Rs 614 Cr) together.
  • EMO Energy leads with $16-21 Mn talks, while Moonrider, Baaz Bikes and Arkle Energy follow.
  • The capital signals a VC shift from pure EV bets toward charging infra and grid storage.

Indian energy storage startups are back in fundraising mode, with a clutch of early-stage battery-tech firms in talks to raise close to $65 Mn (Rs 614 Cr) together, ET reported.

The fundraising list includes EMO Energy, Baaz Bikes, Moonrider, Magron Novus, EarthEn Energy and Arkle Energy, ET reported. Venture capital (VC) interest is rising even as overall electric-vehicle (EV) sector funding fell nearly 70% so far in 2026. Many investors now favour charging infrastructure and grid-scale storage over pure EV bets.

StartupFeed Insight

The real story is not the headline $65 Mn but the shift in where it flows. Pure two-wheeler EV plays now share the table with charging networks, flow batteries and thermal storage, a sign that investors want infrastructure, not just vehicles. Founders building grid-scale and industrial storage should watch closely, because India’s renewable push needs storage to balance supply. StartupFeed expects at least two of these six energy storage startups to close their rounds before December 2026, with valuations holding firm despite the wider EV funding slump. The smart money is moving from the road to the grid. By StartupFeed Desk.

Energy Storage Startups Funding: Full Breakdown

Energy storage startups are firms that build batteries, charging systems or grid storage to hold and deliver power on demand. Six such Indian firms are now raising money, ET reported. The table below maps each round.

Startup Target Raise (USD / INR) Focus
EMO Energy $16-21 Mn (Rs 150-200 Cr) Fast-charging packs for delivery two-wheelers
Moonrider $20 Mn (Rs 189 Cr) Electric tractors
Baaz Bikes $15 Mn (Rs 142 Cr) E-scooters and battery swapping for gig riders
EarthEn Energy $3 Mn (Rs 28 Cr) Heat-storage batteries for industry
Arkle Energy $2 Mn (Rs 19 Cr) Vanadium redox flow batteries (VRFB)
Magron Novus $1 Mn (Rs 9 Cr) Electric motorcycles (bridge round)

Moonrider and EMO Energy are chasing the largest cheques. Magron Novus has already secured $400K (Rs 3.8 Cr) of its $1 Mn bridge round, ET reported.

About EMO Energy

EMO Energy is a Bengaluru deep energy-tech startup founded in 2022 by Sheetanshu Tyagi and Rahul Patel, both former Tesla, Rivian and Ather engineers, per company announcements. It builds fast-charging battery packs and chargers for electric two- and three-wheelers used in last-mile delivery. EMO has raised about $7.5 Mn (Rs 71 Cr) to date from Gruhas, Transition VC and Subhkam Ventures, company data shows.

Why are VCs shifting to energy storage?

Energy storage demand is rising as India adds solar and wind power that need batteries to balance the grid. Investors see steadier, longer-term returns here than in crowded EV manufacturing, ET reported. That logic is pulling capital toward storage and charging.

“…creating a growing need for energy-storage solutions,” said Shantanu Chaturvedi, Partner, Transition VC.

Chaturvedi called storage a complex and nuanced sector. Rising fuel costs and geopolitical tension are adding to the case, ET reported. For founders, this means cheques are available, but investors now reward proven technology and clear industrial demand over growth alone.

How will these startups use the funds?

Most of the fresh capital will fund manufacturing scale-up, technology and new deployments, ET reported. EMO Energy plans to expand its fast-charging network for delivery fleets and may add a debt round. Baaz Bikes, which counts Rakuten Capital, Kalaari Capital and BIG Capital as backers, will widen its swapping network for gig riders, ET reported.

Moonrider will grow its electric tractor business, while EarthEn Energy will scale its heat-storage tech. Magron Novus aims to raise a larger $3-4 Mn round later in 2026, ahead of a commercial launch in mid-2027, ET reported. These energy storage startups are each tying capital to a clear, near-term milestone.

How do these energy storage startups compare?

These energy storage startups use very different technologies, so they rarely compete head-on. The table below shows how three of them differ, based on company data.

Company Technology Main Use
EMO Energy Lithium fast-charging packs Delivery two and three-wheelers
Arkle Energy Vanadium redox flow (VRFB) Long-duration grid and industrial storage
EarthEn Energy Thermal (heat) storage Industrial heat and power

Arkle Energy, founded in 2023, has raised $460K (Rs 4.3 Cr) so far at a roughly Rs 18.9 Cr valuation, Tracxn data shows. What sets these firms apart is focus: each targets a distinct slice of India’s storage need, rather than chasing the same delivery-bike market.

What’s Next

Expect the first rounds to close over the next two quarters. EMO Energy and Moonrider, chasing the biggest cheques, are likely to announce first, possibly before December 2026, ET reported. Magron Novus targets a larger raise later in 2026 and a product launch in mid-2027. Will investors keep favouring storage and charging over pure EV bets through 2027?

Frequently Asked Questions

How much are energy storage startups raising in 2026?
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Indian energy storage startups are in talks to raise close to $65 Mn (Rs 614 Cr) together in 2026, ET reported. The group includes EMO Energy, Moonrider, Baaz Bikes, EarthEn Energy, Arkle Energy and Magron Novus. Each sits at a different stage, from seed to growth rounds.

What does EMO Energy do?
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EMO Energy builds fast-charging battery packs and chargers for electric two- and three-wheelers used in last-mile delivery. Founded in Bengaluru in 2022 by Sheetanshu Tyagi and Rahul Patel, it has raised about $7.5 Mn (Rs 71 Cr) from Gruhas, Transition VC and Subhkam Ventures, company data shows.

Why are VCs backing battery tech over EVs?
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Investors are shifting to battery tech and storage because India’s solar and wind push needs batteries to balance the grid. Storage and charging promise steadier, longer-term returns than crowded EV manufacturing, ET reported. Rising fuel costs and geopolitical tension are adding to the case for electrification.

Which energy storage startups are raising funds now?
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Six energy storage startups are currently raising funds, ET reported. EMO Energy seeks $16-21 Mn (Rs 150-200 Cr), Moonrider $20 Mn, and Baaz Bikes about $15 Mn. EarthEn Energy targets a $3 Mn seed round, Arkle Energy about $2 Mn, and Magron Novus a $1 Mn bridge round.

What is a vanadium redox flow battery?
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A vanadium redox flow battery (VRFB) stores energy in liquid electrolytes, letting power and capacity scale separately. This makes it well suited to long-duration grid and industrial storage. Bengaluru-based Arkle Energy builds VRFB systems and has raised $460K (Rs 4.3 Cr) so far, Tracxn data shows.

Last updated: June 26, 2026 at 11:15 IST

Disclaimer: This article is for informational purposes only and does not constitute investment advice. StartupFeed and its authors are not SEBI-registered investment advisors. The analysis above is based on publicly available information and should not be the sole basis for any investment decision. Please consult a SEBI-registered financial advisor before making investment decisions.

Written by Avinash. Published: June 26, 2026. Updated: June 26, 2026. Have a tip? Write to us at editorial@startupfeed.in.

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Avinash is a dedicated MBA professional with expertise in business operations, team management, and AI-driven content development. Backed by global certifications and published HR research, he leverages innovation and strategic management to drive organizational success.