Another Startup Fall: Why Leading EV Battery Startup Log9 Materials Crashed?

They were once celebrated as the torchbearers of India’s battery revolution — a team of young innovators promising to outshine Chinese battery giants with indigenous tech, eco-friendly chemistries, and a bold vision to fuel India’s electric vehicle (EV) dream.

But ten years after its ambitious inception, Log9 Materials — once heralded as India’s leading deeptech startup — is now in dire straits. With legal tussles piling up, debt mounting to over ₹200 crore, mass layoffs underway, and once-bustling offices now shuttered, Log9’s story is a sobering reminder of how quickly things can unravel in the startup ecosystem.

As the BluSmart-Gensol saga grabs headlines, another equally cautionary tale is unfolding quietly in the background. Let’s unravel how the darling of India’s deeptech sector fell from grace.

The Rise of Log9 Materials: A Vision Fueled by Innovation

The year was 2015. Dr. Akshay Singhal, with a PhD and a passion for clean tech, founded Log9 Materials in Bengaluru. Joined soon by Kartik Hajela and Pankaj Sharma, the trio envisioned a future where India could break its dependency on lithium-ion (Li-ion) imports. Their weapon? Aluminium-air and graphene-based fuel cells — futuristic tech that promised to outperform conventional batteries on cost, safety, and sustainability.

By 2019, the startup had caught the attention of marquee investors. Peak XV (then Sequoia Surge) and Exfinity Venture Partners bet early on Log9, pumping in $3.5 million. Industry heavyweight Amara Raja Batteries also backed the startup, seeing potential in its breakthrough battery tech.

The buzz was real. Log9 was seen as India’s answer to Tesla’s battery dreams — homegrown, deeptech-driven, and mission-focused.

But behind the headlines, cracks had already begun to form.

The Fall Begins: Pivoting Tech and Confused Strategy

In the fast-evolving battery space, adaptation is essential. But Log9’s series of pivots — from aluminium-air fuel cells to LTO (lithium-titanate oxide) batteries — seemed more like frantic detours than strategic shifts.

What began as a focused innovation journey turned into a tale of chasing trends.

The startup eventually chose to bet big on LTO chemistry — a niche but costly alternative to LFP (lithium iron phosphate) batteries. While LTO was safer and faster to charge, it lacked energy density, drained faster in Indian heat, and most importantly, cost more.

This decision would come back to haunt Log9.

Log9's Business Stack: A Complex Web of Batteries, Cells, and Leases

Log9’s ambitions were never small.

The company’s model was to own the full battery stack — from cell manufacturing to battery production to eventually powering its own EV leasing operations.

But the complexity of this vertical integration was perhaps underestimated.

Here's how their business stack looked:

• Cell Manufacturing → Battery Manufacturing → EV Leasing

Log9 began importing cells from China before establishing its own ₹150 crore cell facility in Bengaluru’s Jakkur area in 2022. But delays in importing machinery and expert visa issues meant the facility only began limited operations in April 2023 — far too late to make a real impact.

Meanwhile, Log9 shifted focus to the less capital-intensive EV leasing model. Partnering with Omega Seiki Mobility and Quantum, the company leased vehicles powered by Log9’s batteries to fleet operators, financed through platforms like Revfin, Alt Mobility, and Gentari.

The model worked — for a while.

Revenue Rises, But So Do Losses

The leasing pivot paid off in the short term. Revenue jumped:

• FY22: ₹25.5 Cr

• FY23: ₹74.4 Cr

• FY24: ₹110.3 Cr

But profits? Nowhere in sight.

• FY24 Losses: ₹118.6 Cr

• FY23 Losses: ₹88.4 Cr

• Debt Burden: ₹200 Cr+

The leasing model offered impressive top-line growth — but it masked the faltering core battery business, which remained unviable without strong in-house cell manufacturing.

Technology Pitfalls: When the Core Crumbled

At its heart, Log9 was supposed to be a battery tech innovator.

But investigations reveal a shaky tech stack — especially within the cells that powered their batteries. Customers began complaining about poor EV range and overheating, especially during Indian summers.

The culprit? Log9’s LTO battery chemistry.

While OEMs were enthusiastic about the high-tech promise, end-users didn’t see the value. LTO’s benefits were overshadowed by higher upfront costs and poor field performance — a mismatch between market promise and on-ground delivery.

Worse, Log9 struggled to match China’s scale in manufacturing, making its tech economically uncompetitive.

Visual Timeline: The Rise and Fall of Log9 Materials

The Breaking Point: A Classic Deeptech Dilemma

Deeptech is hard. It’s capital-intensive, slow to market, and requires a long runway. That’s why many VCs shy away from it.

Log9 tried to hack this reality with VC money, chasing scale before solving product-market fit — a dangerous gamble.

Amara Raja’s investment? More of an R&D hedge than a long-term bet, experts say.

Meanwhile, geopolitical uncertainties with China, lack of local battery infra, and slow-moving EV demand made it even harder for the startup to survive.

Today: What Remains of Log9 Materials?

As of now, Log9 is a shell of its former self.

• Bengaluru and Delhi offices remain, but are largely inactive.

• Centres in Mumbai, Hyderabad, Chennai, and Jaipur have shut down.

• Legal cases with customers and financiers are mounting.

• Co-founder exits have left a leadership vacuum.

Insiders say fewer than a dozen employees remain. Layoffs, uncertainty, and shattered morale are all that’s left of what was once India’s deeptech hope.

Lessons for India’s Startup Ecosystem

1. Tech Before Scale: Innovation cannot bypass product-market fit.

2. Don’t Mask Losses With Revenue: Top-line growth means little if your core tech is flawed.

3. Understand the Market: OEM enthusiasm ≠ end-user adoption.

4. VCs & Deeptech: The marriage is tricky. Most VCs prefer fast exits, deeptech needs patient capital.

Not Just a Fall, But a Wake-Up Call

The story of Log9 is not just about one startup collapsing — it’s about the larger tension in India’s startup ecosystem between innovation and execution, ambition and feasibility.

As India races toward a net-zero future and champions the Make in India vision, the collapse of Log9 should serve as a wake-up call. If we don’t build resilient, viable deeptech frameworks and understand our market realities better, more such stories will follow.