Tsuyo Manufacturing Raises INR 40 Crore in Pre-Series A Funding

Tsuyo Manufacturing Pvt. Ltd., an electric powertrain design and manufacturing company, has secured INR 40 crore in a Pre-Series A funding round led by Avaana Capital, a venture capital firm specializing in deep-tech innovation.

The capital will be deployed to establish a second research and development centre and commission a new greenfield manufacturing facility. The company supplies integrated powertrain solutions to original equipment manufacturers including Mahindra, Volvo Eicher, and Sonalika, serving applications across three-wheelers, four-wheelers, light commercial vehicles, heavy commercial vehicles, and off-road segments.

Tsuyo holds 29 patentable innovations, including rare-earth-free motors and hybrid magnet-based motors. The company is currently the only Indian supplier with a validated powertrain platform for heavy commercial vehicles such as buses and trucks, along with retrofit solutions for internal combustion engine fleets.

"Tsuyo is building the backbone of India's energy transition," said Vikas Verma, Venture Partner at Avaana Capital. "Their vertically integrated powertrain, critical for electrification across automotive and industrial applications, exemplifies the kind of indigenous, scalable innovation that will define India's role in building globally resilient supply chains."

The planned manufacturing facility will be Tsuyo's third production unit, focused on high-wattage electric motors with capacity up to 250 kW and transmission assemblies. The facility will include a dedicated vehicle testing track and end-of-line validation systems compliant with PM e-Drive and FAME standards.

The new R&D centre will concentrate on power electronics, embedded systems, and prototype development to strengthen the company's technology pipeline.

"Our mission has always been to design and manufacture powertrain systems from India that compete at a global level," said Vijay Kumar, Founder and CEO of Tsuyo. "With Avaana's support, we're scaling high-wattage motor production and advancing deep-tech R&D."

Founded in 2020, Tsuyo offers in-house design, development, and manufacturing capabilities. Its product portfolio includes SPMSM, IPMSM, ACIM, SRM, and SynRM motor technologies, supported by components such as vehicle control units, transmission control units, DC-DC converters, gearboxes, and IoT systems. The company has filed four patents with 25 more in the pipeline and maintains research collaborations with IIT Delhi and VNIT Nagpur.

Over the past four years, Tsuyo has delivered more than 150,000 powertrain units across various electric vehicle applications, working with over 25 OEMs including Hero, Mahindra, Volvo-Eicher, Sonalika, Greaves, and Livguard. The company currently exports to Sri Lanka, Bangladesh, and the Philippines, with plans to expand into Southeast Asia, Japan, Korea, and Europe.

The company's growth strategy includes scaling high-wattage motor production with an initial annual capacity of 20,000 units, expanding export markets, securing global certifications, launching retrofit solutions for commercial vehicles ranging from 1.5 to 90 tonnes, and targeting seven to eight times growth within three years.

Tsuyo has been selected by the Ministry of Electronics and Information Technology for an ICE to EV retrofit project for commercial vehicles.

Avaana Capital, founded in 2018, is a thematic fund investing in frontier technology companies across energy, supply chains, food and agriculture systems, and advanced materials. The firm's portfolio includes companies such as Turno, Kazam, Dreamfly, Amperehour, and Aerem.