Tsuyo Manufacturing Raises ₹40 Crore from Avaana Capital

Tsuyo Manufacturing Pvt. Ltd., an emerging leader in electric powertrain design and manufacturing, has raised INR 40 cr in a pre-series A round led by Avaana Capital, a venture capital fund focused on backing deep-tech innovation.

The investment will fuel Tsuyo’s next phase of growth, enhancing its fully integrated end-to-end capabilities by establishing a second R&D center and commissioning a new greenfield manufacturing facility. Tsuyo is a leading tier-1 supplier of integrated powertrain solutions to OEMs, including Mahindra, Volvo Eicher, and Sonalika, with products addressing 3/4W, LCV, HCV, and off-road applications and 29 patentable innovations, including rare-earth-free motors and hybrid magnet-based motors. Tsuyo is the only Indian supplier with a validated powertrain platform for heavy commercial vehicles, including buses and trucks, and retrofit solutions for existing ICE fleets. With an increasing government push and growing industry focus on electrifying India’s heavy commercial segment, Tsuyo is well-positioned to benefit significantly from this transition.

“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 and reducing reliance on rare earth mineral-based technologies. We’re proud to partner with a team that brings together deep design and engineering innovation with the operational excellence needed to scale commercially.”

The upcoming manufacturing facility will be Tsuyo’s third manufacturing unit, focused on producing high-wattage electric motors (up to 250 kW) and transmission assemblies. It will also feature a dedicated vehicle testing track and advanced end-of-line validation systems aligned with PM e-Drive and FAME standards.

The new R&D center will focus on power electronics, embedded systems, and prototype development, reinforcing Tsuyo’s deep-tech innovation pipeline.

“Our mission has always been to design and manufacture powertrain systems from India that compete at a global level,” said Vijay Kumar, Founder & CEO, Tsuyo. “With Avaana’s support, we’re scaling high-wattage motor production and advancing deep-tech R&D. From magnet-less designs to novel winding approaches and localized tooling, our focus is on creating more efficient, reliable, and sustainable powertrain solutions.”

Founded in 2020, Tsuyo is among India’s first Tier-I mid-drive electric motor manufacturers with fully integrated in-house design, development, and manufacturing capabilities. Its proprietary product suite spans SPMSM, IPMSM, ACIM, SRM, and SynRM (magnet-less) motor technologies, supported by components such as VCU, TCU, DC-DC converters, gearboxes, and IoT systems. The company has filed four patents and has 25 more in the pipeline, with ongoing research collaborations with IIT Delhi and VNIT Nagpur. Tsuyo is also contributing to academic partnerships aimed at building EV engineering talent. Tsuyo has also been selected by MeitY for the ICE to EV retrofit project for commercial vehicles.

Over the last four years, Tsuyo has delivered more than 150,000 powertrain units across various EV applications, working with 25+ OEMs, including Hero, Mahindra, Volvo-Eicher, Sonalika, and Greaves, among others. Its strong domestic base is complemented by growing exports to Sri Lanka, Bangladesh, and the Philippines, with expansion plans for Southeast Asia, Japan, Korea, and Europe.

Tsuyo’s new initiatives will focus on:

Scaling high-wattage motor production (15 kW–250 kW) with an initial annual capacity of 20,000 units
Setting up the R&D centre dedicated to hardware-based embedded software and power electronics
Expanding export markets, securing global certifications, and strengthening OEM partnerships
Launching retrofit solutions for commercial vehicles (1.5T–90T)
Targeting 7-8x growth within the next three years

“With our third plant coming online and a strong technology roadmap ahead, we’re positioning Tsuyo as a global player in powertrain innovation, built from India,” added Kumar. “Our focus remains on scale, sustainability, and engineering excellence.”