The Rise of “Clean-Tech” Unicorns: Why 2025 is the Year of Green Capital

By The Neo Nation Bureau | Sustainability & VC Desk Date: November 28, 2025

Bengaluru: For the last decade, the term “Unicorn” in India conjured images of food delivery apps, fintech wallets, and e-commerce giants. But in 2025, the color of capital has changed.

Industry data from late 2025 confirms a massive surge in funding for sustainability-focused startups. While the traditional consumer internet sector grapples with valuation corrections, Clean-Tech has emerged as the new darling of the Indian venture ecosystem, specifically in two high-growth corridors: EV Battery Recycling and Green Hydrogen.

This isn’t just a trend; it’s a replacement. Investors are swapping “Customer Acquisition Cost” for “Carbon Credits.”

The New “Billion-Dollar” Blueprint

The defining moment of this shift was Ather Energy’s march toward its IPO with a valuation target of $2.4 Billion. This wasn’t just an exit; it was a signal. It proved that hardware-heavy, asset-intensive businesses could deliver the same venture-scale returns as software companies.

Following this lead, a new crop of “Soonicorns” (Soon-to-be Unicorns) is rapidly maturing.

• Lohum Cleantech: Recently raising $116 Million (Series B) and valuing itself at over ₹3,500 Crore, Lohum is building India’s first rare earth refining hub.
• Hygenco: The Gurugram-based green hydrogen player secured a massive $125 Million investment round this November, targeting a valuation of $250 Million—a jump that outpaces most SaaS startups this year.

Sector 1: The “Urban Miners” (Battery Recycling)

As millions of EVs hit Indian roads, the question of “What happens to the old batteries?” has created a goldmine.

Startups like Attero Recycling and Lohum are no longer just waste management firms; they are “Urban Miners.” By extracting critical minerals like Lithium, Cobalt, and Nickel from dead batteries, they are solving India’s raw material dependency on China.

• The Data Point: Attero is on track to cross ₹1,100 Crore in revenue in FY25, with plans for an IPO in the next 12-18 months. This focus on revenue-first growth is starkly different from the growth-first model of 2021.

Sector 2: The “Green Molecule” Boom (Hydrogen)

While conglomerates like Reliance and Adani are leading the infrastructure charge, startups are owning the technology layer.

Companies like New Trace and Hygenco are winning by offering “Gas-as-a-Service”—building decentralized hydrogen plants for steel and fertilizer units. This B2B stickiness is proving more attractive to investors than the fickle B2C consumer market.

Why Consumer Internet is Losing Steam

The divergence in 2025 funding is stark.

• Consumer Internet: Plagued by regulatory uncertainty (gaming bans, fintech compliances) and saturated user growth.
• Clean-Tech: Buoyed by the PLI (Production Linked Incentive) Schemes and the Critical Minerals Mission.

Investors are effectively hedging their bets. A senior partner at a climate-focused VC fund noted, “In 2025, we aren’t looking for the next app that delivers groceries in 10 minutes. We are looking for the company that powers the van delivering it.”

The Road Ahead

As we close the year, the “Clean-Tech Unicorn” is no longer an anomaly—it is the archetype. With Attero and Lohum eyeing public listings, 2026 promises to be the year where “Green” finally turns into “Gold” for Indian investors.