Hyderabad's clean energy startup HYLENR raises $3 million; Investor says, 'Their technology is disruptive'

HYLENR, a Hyderabad-based clean energy startup developing heat energy systems using patented Low Energy Nuclear Reactions (LENR), has raised $3 million in a pre-Series A funding round led by Valour Capital and Chhattisgarh Investments Limited.

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Individual investors Karthik Sundar Iyer and Anant Sarda also participated in the round. The startup said the capital will be used to accelerate the transition from pilot projects to market launch.

Founded in 2024, HYLENR's proprietary LENR-based hybrid heat systems aim to revolutionise thermal energy generation across industries such as manufacturing, oil and gas, district heating, and clean water desalination. The startup holds two patents covering the product architecture and the process innovation behind its LENR systems.

“HYLENR’s LENR technology is disruptive; it represents a leap forward in redefining how the world approaches industrial heat and energy generation. What excites us most is the scalability and safety profile of their systems, coupled with the perfect mix of technological and entrepreneurial expertise within the team, which positions HYLENR to play a key role in the global energy transition,” said Karan Goshar, Partner at Valour Capital. 

“We believe LENR has the potential to be the safest and most energy-efficient thermal and electrical generation technology of the future,” said Siddhartha Durairajan, Chairman and Managing Director of HYLENR.

“Our recent lab results show unprecedented energy gain ratios, and this round gives us the momentum to focus on our product roadmap. We have begun early proof-of-concept tests, with several government bodies and large corporations showing interest in our LENR systems. The next phase will focus on scaling manufacturing and expanding globally,” Durairajan added.

“This round is a vote of confidence in both our technology and our mission,” said Ram Ramaseshan, Co-Founder, Executive Director and CEO of HYLENR. 

“We have moved beyond proof-of-concept into a phase where LENR can begin to address real-world energy challenges. This funding allows us to accelerate product development and market reach, addressing industry needs for clean, high-yield thermal and electrical energy solutions in the US, Europe, India and Japan markets.”

HYLENR said that the pilot projects are underway with government institutions and industrial companies to replace fossil-based systems with LENR-powered alternatives. The startup's planned products range from 7.2 kilowatts for domestic use to 1 megawatt for industrial applications.

Notably, it is targeting a $25 million fundraising round with strategic investors and clean energy–focused funds from the United States and Europe.