Demand for electricity around the world is surging. By 2030, electricity’s share of global energy consumption is expected to rise from 20% to 30%, driven by explosive growth in artificial intelligence, data centers, electric vehicles, reindustrialization, and more. And while advancements in energy generation will likely be able to supply the raw power needed, current power grids are not equipped to handle this increasing demand.

To support increased demand and newer forms of energy usage, products and systems like transformers, switch gears, circuit breakers, advanced battery energy storage systems (BESS), and more are needed at scale. But the supply chain for power grid infrastructure has become a serious bottleneck.

In the U.S. alone, nearly half of the 60 million transformers (essential for safely and reliably delivering power at the right voltage levels) need to be replaced. An estimated additional 120 million transformers will be required to accommodate future renewable energy sources, which demand 2-3x more transformer capacity than conventional power. Current transformer manufacturing cannot keep pace: prices have risen 40-60% and delivery lead times have increased 320% since 2021.

At General Catalyst, we believe that energy is a foundational pillar of global resilience. That’s why we’re investing in Ayr Energy, which is reimagining how power equipment is designed and delivered to support the next wave of electrification. 

Fixing the Grid’s Breaking Point

Ayr is tackling the strained global supply chain for power grid infrastructure by building for today’s realities: providing custom-engineered solutions, improving lead times, and creating a resilient, diversified supply base. They’re doing this by pairing engineering depth with scalable execution, unlocking established manufacturing capacity and technical talent while maintaining rigorous quality and process control. By developing foundational infrastructure for products including transformers, switch gears, and circuit breakers, Ayr is helping create a more secure energy future.

Founders Anirudh Reddy, Rahul Arora, and Yashashvi Takallapalli bring a highly complementary mix of technical depth and commercial acumen. Collectively, they’ve worked across domains spanning global precision manufacturing, battery energy storage systems, to grid-edge software and strategic operations at companies like Eaton, Ather Energy, Zetwerk, Stem, McKinsey, InMobi, and Schlumberger. With a nuanced understanding of both product engineering and global go-to-market strategies, they’ve designed and delivered complex physical products in multiple geographies.

With a strong balance of technical expertise, on-the-ground execution capability, and market insight, we believe this team is well-positioned to build a resilient and scalable next-generation power equipment company.