Entellus Industries, a Chennai-based deep-tech manufacturing firm, has raised ₹50 crore (approximately $5.5 million) in its second funding round. The investment was led by ZeroW, a boutique venture firm backed by the Mekapati Family Office (promoters of the KMC Group infrastructure conglomerate).

The fresh capital comes on the heels of a $12 million initial round from Silicon Valley titan Social Capital, bringing Entellus’s total funding to over $17.5 million. The company will use the proceeds to scale its manufacturing operations in Tamil Nadu, specifically expanding into sintered alloys and commercializing its suite of rare earth products.

Securing India’s Green Energy Supply Chain

Founded in 2022 by Simha Kumar and Nagarajan Mahadeven, Entellus is positioning itself as a strategic player in the global “critical materials” race. The company specializes in producing Neodymium-Praseodymium (NdPr) metal, bonded powders, and strip-cast alloys—the essential “ingredients” for permanent magnets.

Why This Matters:

Permanent magnets are the silent engines of the modern world. They are critical for:

• Electric Vehicles: Powering high-efficiency traction motors.

• Wind Energy: Enabling direct-drive wind turbines.

• Defense: Used in guidance systems, radar, and aerospace components.

• Electronics: Found in everything from smartphones to hard drives.

Currently, the rare earth supply chain is heavily concentrated in China. Entellus is the first private Indian firm to verifiably achieve technical capabilities in rare earth metal and alloy manufacturing, providing a domestic alternative that aligns with the “Make in India” and “Self-Reliant India” (Atmanirbhar Bharat) initiatives.

Scaling to 2,000 Tonnes Annually

With the new capex infusion, Entellus is moving from pilot-scale validation to industrial-grade production. The expansion is designed to support a production capacity of approximately 2,000 tonnes of magnets annually.

Unlike traditional mining companies, Entellus focuses on the mid-stream processing of rare earths—the complex chemical and metallurgical transformation of oxides into high-performance metals and alloys.

“Proving technical capabilities in rare earth metal and alloy manufacturing is non-trivial, and we are the first ones to achieve it verifiably in India,” said Simha Kumar, CEO of Entellus Industries. “We wish to use this advantage in making India a truly global hub for rare earth magnet manufacturing.”

[Image: A high-tech metallurgical facility in Tamil Nadu showing the processing of NdPr metal into bonded powders]

Investor Insight: Backing Deep-Tech Infrastructure

The lead investor, ZeroW, specializes in emerging deep-tech sectors where capital-intensive manufacturing meets cutting-edge science. By leveraging the industrial expertise of the KMC Group, ZeroW aims to provide Entellus with more than just capital—offering institutional support for large-scale infrastructure deployment.

By: Vanshika Tayal