Entellus Industries, India’s first rare earth metals and alloy manufacturing company, has raised Rs 500 million in its second round of funding, 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, one of India’s largest infrastructure conglomerates. ValPro acted as the transaction adviser for the deal.

The company had earlier secured $12 million from Social Capital, a Silicon Valley–based venture capital firm, to establish its operations and set up NdPr metal and bonded powder alloy manufacturing plants in Tamil Nadu. The latest capital infusion marks a significant step in Entellus’s growth journey as it moves to broaden its product portfolio and scale commercial operations.

According to the company, the fresh funds will be deployed towards capital expenditure to expand into sintered alloys and to take its existing rare earth products to market. With the proposed expansion, Entellus expects to build production capacity of approximately 2,000 tonnes of magnets per year, strengthening India’s domestic capabilities in a strategically critical segment.

Commenting on the fundraise, Simha Kumar, CEO, Entellus, said, “Proving technical capabilities in rare earth metal and alloy manufacturing is non-trivial and we are the first ones to achieve it verifiably in India. We wish to use this advantage in making India a truly global hub for rare earth magnet manufacturing.”

The investment comes at a time when global supply chains for rare earth elements and magnet materials are undergoing structural realignment, prompting countries to prioritise domestic manufacturing of critical inputs. In India, initiatives such as Make in India have accelerated focus on building local capacity in strategic materials.

Entellus’s model of developing private-sector, commercially viable rare earth metal and alloy manufacturing infrastructure highlights the growing role of Indian companies in reducing import dependence and supporting global supply chains for advanced manufacturing and clean energy technologies.