Darshit began our class with the question: What is cryogenics? When you use refrigeration for creating spaces below -150 °C, it involves cryogenics. MRI machines with cool superconducting magnets, preserving biological specimens like stem cells, liquified natural gas (LNG), and rocket fuels such as liquid hydrogen and oxygen, need cryogenics.
Here are my four key takeaways from Darshit’s talk:
1. Need to perfect the technology before taking it to the market: Darshit began his research with the question - Can we use HVAC materials and reach cryogenic temperatures? Like most of his classmates, he thought he would take up a job after finishing his Master's. Prof Atrey used to bring visitors from industry and academia to the lab, and the students would demonstrate how a normal HVAC compressor can be used to achieve -200 °C. The visitors used to be surprised. This convinced Darshit that this technology is likely to have commercial potential. However, it had missing pieces. Darshit spent the next 4-5 years maturing the technology.
2. Customer discovery is very important: In 2018-19, Darshit realized that he needed a business plan. He joined the I-NCUBATE program jointly organised by DSSE (DCE at that time), IIT Bombay, and GDC, IIT Madras, which nudged him towards customer discovery. He dropped out in the middle, perhaps due to demands from his research; however, he realized the importance of answering the question – Who is my customer? One possibility was blood banks. They said they were ready for pilots. However, no one submitted a letter of intent. Healthcare is a heavily regulated industry, and hence, not a good place to start your journey. Then came the pilot project from the chemistry lab. It was completed successfully. However, there was also a realization that the market for such refrigerators is very small. This is when, in Darshit’s words, the shit hit the fan. It led to introspection – What is our USP? 3 things came up – 1) temperature flexibility -40 °C all the way to -200 °C, 2) energy efficiency 20-30% cooling efficiency, 3) sustainable refrigerators when one combines ozone depletion potential and global warming potential. Could LNG be a market? Yes, very small in India right now, but growing. Could data center cooling be a market? Yes, mostly outside India right now. Could Liquified Bio Gas (LBG) be a market? Yes, potentially. During customer interaction, a new problem was discovered, biogas separation – separating CO2 and Methane. Could FC solve the problem for the customer? Could FC build a cryotherapy chamber for a resort? As the FC team began interacting with customers, new avenues opened. Now, FC has reached a point where there are orders, and the FC team needs to deliver. And eventually see which option scales.
3. Cost and speed of experimentation matter: A company like Zepto gets started with two people, two laptops, and starts generating revenue from day one. A company like FC works differently. Simulations do get started on a laptop. However, the proof of pudding lies in showing a physical demo. For Darshit, the prototype was built when he got a couple of grants, one from the institute itself and another from Nidhi Prayas from the Department of Science and Technology (DST). Many experiments didn’t work. For example, the compressor module worked well, but the freezer cabinet failed for a couple of iterations. For an energy solution, it is important to have your own test lab. If there are claims to be made about energy efficiency, it helps to be confident through internal testing before going for an external energy audit. Initially, FC had to outsource the freezer chamber. It cost more, it had quality issues, and each improvement iteration took longer. For example, the local vendor didn’t understand what vacuum insulation means. Eventually, FC built its own workshop and testbed with cutting tools and a welding machine. Darshit knew a bit about fabrication, which helped.
4. Patent where it is really important: Patenting is expensive. Filing a patent for India region costs about ₹1.5 Lakh, and filing a patent for protection in the US costs ₹20 Lakh. If you want to cover all regions, such as the UK, the EU, Australia, etc., it will cost ₹70-80 Lakh. Moreover, big organizations easily find ways to circumvent a patent filed by a startup. For example, if FC files a patent to protect a refrigerant mix that improves energy efficiency by 30-40%, a big player can easily change the mix a little bit and get the advantage. Hence, Darshit feels that startups should patent where it is really important. Does it mean you should not patent at all? No, a big player is also worried about its brand being damaged if found infringing on other players’ patents. Legal battles are very expensive. It is best not to get into it in the first place.
With an energy crisis looming large across India, we need companies like Flash Cryogenics, which can play a role in liquifying biogas and natural gas. Deep tech is a game of patience, and FC is still exploring its product-market fit. We wish Darshit and the FC team all the very best in their journey ahead.
