Albatross Energetics has raised $1.05 million (around ₹10 crore) in a Pre-Series A funding round led by Transition VC. The fresh capital will help the company build pilot-scale manufacturing facilities, expand its presence across industrial sectors, and continue developing its cooling technology.

Founded in 2021 by IIT graduates Sudarsan M S and Srihari B, the Mumbai-based startup designs liquid-desiccant air conditioning systems that reduce the energy needed for industrial cooling and humidity control. The company will use the funding to manufacture key components such as heat-and-mass exchangers and liquid desiccants, while adding to its engineering and quality teams.

Its cooling systems are used in industries where humidity levels must be tightly controlled, including pharmaceuticals, semiconductors, electronics, battery manufacturing, food processing, chemicals, textiles, and cleanroom operations. According to the company, the technology can cut the energy used for dehumidification by up to 50%, reducing electricity costs and emissions.

Sudarsan M S, co-founder and chief executive officer of Albatross Energetics, said a large share of electricity used for cooling in hot and humid regions goes towards removing moisture from the air. He said the company has spent several years developing an alternative that addresses this challenge and is currently focused on industrial customers in India, while exploring future applications in commercial buildings and homes.

Raiyaan Shingati, co-founder and managing partner of Transition VC, said industries continue to rely on cooling systems that consume large amounts of power. He said Albatross's approach combines cooling and dehumidification in a single process, helping reduce energy consumption without relying on conventional methods.

Along with scaling manufacturing, the startup plans to install more systems across industrial facilities and continue research on new cooling technologies. It also intends to expand into commercial buildings and international markets over time.

Transition VC is an early-stage venture capital firm that invests in startups working on India's energy transition, with a focus on areas such as electrification, energy storage, industrial decarbonisation, alternative fuels and advanced manufacturing.