HVAC market projected to reach $29.4bn by 2030
Ahmedabad’s Gati Drives, a deep-tech startup developing next-generation electric motors that deliver Brushless DC (BLDC) level efficiency at a fraction of the cost without rare-earth materials, has raised a pre-seed round from Campus Fund to accelerate the company’s product development, scale manufacturing capabilities, and establish partnerships with leading HVAC and appliance OEMs across India.
Gati Drives addresses the critical challenge of India’s dependence on imported, expensive BLDC motors while over 90% of appliances still rely on inefficient 100-year-old induction motor technology.
“Gati Drives represents a breakthrough in a traditionally stagnant industry that has seen little innovation in decades,” Richa Bajpai, Founder & CEO of Campus Fund, said on 23 Jan. “We’re backing a founding team with rare technical expertise in motor R&D, addressing a massive market opportunity at the intersection of energy efficiency, supply chain independence, and cost innovation. Their SSPM technology offers the efficiency of BLDC motors at near-induction-motor pricing, a combination that no one else has achieved.”
Gati’s proprietary Slip Synchronous Permanent Magnet (SSPM) motors achieve approximately 90% efficiency, matching premium BLDC motors, while being 40-50% cheaper and 100% locally sourced. The technology uses ferrite magnets manufactured in India and indigenous RISC-V microcontrollers, eliminating dependence on Chinese rare-earth materials and imported components. Unlike traditional BLDC motors that require full replacement when damaged, SSPM motors are designed for component-level repairs, making them ideal for cost-sensitive Indian markets.
India’s sub-1kW motor market presents a significant opportunity, valued at US$4.7 billion and growing at approximately 8.5% CAGR. The HVAC market alone is projected to reach US$29.4 billion by 2030, driven by extreme weather conditions, rising middle-class prosperity, and government mandates for energy-efficient appliances. With China restricting exports of rare-earth materials essential for high-performance motors—affecting 90% of global supply, Indian manufacturers urgently need domestic alternatives.
“Electric motors have powered the world for over a century, yet manufacturers still face an impossible choice: expensive imported BLDC motors or inefficient induction motors that waste 30-50% of electricity as heat,” said Suyash Mishra, Co-founder and CEO of Gati Drives.
“Our SSPM technology breaks this tradeoff. Campus Fund’s backing validates our vision of making India a global hub for advanced motor technology while delivering real energy savings to millions of households.”
The founding duo, Mishra and Gajendra Jain, brings deep expertise as former founding engineers at Naxatra Labs and Motorama, where they led the design of rare-earth-free BLDC motors for e-mobility applications.
Gati Drives has already generated strong interest from industry leaders, with pilot programs underway with prominent companies in India. The investment will primarily support manufacturing scale-up, team expansion, and completing certifications required for commercial deployment. The company aims to achieve pilot production of 1,000-2,000 units per month by early 2026, with plans to expand into fans, pumps, and eventually EV motors.
Gati Drives joins Campus Fund’s growing portfolio of student-led ventures transforming India’s industrial landscape, driven by exceptional founders building deep-tech solutions that address fundamental market gaps with innovative, locally-sourced technology. Fiinews.com
