Funding · Agriculture & Food Systems

Entellus Industries raises ₹50 crore in second funding round

By Startup Enthusiast · 26 January 2026

What they do

Entellus Industries makes rare earth metals and alloys used in permanent magnets

It raised ₹50 crore ($5.5 million) in its second funding round led by ZeroW

The company aims to expand into sintered alloys and commercialize existing products

Entellus Industries raised ₹50 crore (about $5.5 million) in its second funding round.
The round was led by ZeroW, a boutique investment firm focused on deep-tech and emerging sectors.
ZeroW is backed by the Mekapati Family Office, promoters of the KMC Group.
The company's previous round was $12 million from Social Capital in 2022.
Total funding now stands at over $17.5 million.
The transaction was advised by ValPro.
The funds will be used for capex to expand into sintered alloys and commercialize existing products.

The rare earth supply chain is heavily concentrated in China; China's export curbs caused a permanent magnet shortage in 2025.
In November 2025, the Indian government launched a 'Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets' with a ₹7,280 crore allocation.
Permanent magnets are used in electric vehicles, wind turbines, defense systems, and advanced electronics.
Competitors like Ola Electric and Chara Technologies are developing rare-earth-free motors.

Entellus Industries is a Chennai-based deep-tech manufacturing firm founded in 2022.
It produces rare earth metals and alloys — NdPr (Neodymium-Praseodymium) metal, bonded powders, and strip-cast alloys.
These are critical inputs for permanent magnets.
The company focuses on mid-stream processing of rare earths: chemical and metallurgical transformation of oxides into metals and alloys.
It operates manufacturing plants in Tamil Nadu for NdPr metal and bonded powder alloys.
It is the first private Indian firm to verifiably achieve technical capabilities in rare earth metal and alloy manufacturing.
Target production capacity is 2,000 tonnes of magnets per year.
The company has 24 employees.

ZeroW (lead) — Boutique investment firm focused on deep-tech and emerging sectors, founded by Mekapati Family Office (promoters of KMC Group).
Social Capital (existing) — Silicon Valley-based venture capital firm.

Product: Rare earth metals and alloys, including NdPr metal, bonded powders, strip-cast alloys, and sintered alloys.
Customers: Manufacturers of permanent magnets, electric vehicles, wind turbines, defense equipment, and advanced electronics.
How it makes money: Direct B2B supply and sales of rare earth metals and processed alloy materials.
What sets it apart: Domestic manufacturing capacity breaking dependence on global rare earth monopolies.
Operations: Establishing manufacturing plants in Tamil Nadu targeting 2,000 tonnes of annual magnet capacity.