Ecozen, an India-based climate-smart technology solutions firm, announced last Friday that it has raised $30 million in a mix of debt and equity.
This infusion of capital includes continued support from Nuveen and other existing equity investors, and new debt support from InCred Credit Fund and the U.S. International Development Finance Corporation (DFC) through Ecozen’s exclusive advisor Setuka Partners LLP, Ecozen said in a statement.
According to the statement, the latest round of funding will be used to cater to the growing demand for Ecozen’s innovative products and to further its commitment to climate-smart technology.
It is noted that the company has grown 5 times over the last two years, with profits growing 3 times as well.
Ecozen anticipates doubling its revenue in the current fiscal year, buoyed by strong demand for existing products and plans to leverage its tech stack of advanced motors and controls, thermal energy storage, artificial intelligence (AI) and internet of things (IoT) to enter new segments undergoing a transition to cleaner energy sources.
These solutions will decarbonize sectors like milling, mobility, retail and industry, just as the company’s pumping and cooling solutions did for agriculture.
The company is also set to meaningfully expand its offerings and market presence into Africa and Southeast Asia.
According to the statement, Ecozen has made solar-powered systems a viable solution for small and marginal farmers in India.
Over the past decade, its products – Ecotron and Ecofrost – have transformed the agricultural irrigation and cold chain industries respectively.
Utilizing advanced motor controls, IoT, and energy storage technologies, these modular, clean energy innovations have not only boosted the incomes of over 180,000 farmers but have also cut greenhouse gas emissions by 2 million tons and prevented more than 50,000 metric tons of food loss.
“Ecozen is on an accelerated growth path, driven by the increased market demand for our pioneering climate-smart solutions,” said Devendra Gupta, Chief Executive Officer and Co-Founder of Ecozen.
According to him, the capital raised will enable the firm to scale its operations and deepen its market penetration in domestic and international territories.
“We are committed to empowering customers and expediting the transition to climate-smart technologies on a global scale,” he added.
Meanwhile, Rekha Unnithan, Managing Director and Head of Private Equity Impact Investing at Nuveen, said that supporting companies like Ecozen aligns perfectly with Nuveen’s commitment to invest in businesses that have a profound impact on climate change mitigation and resilience.
“Ecozen’s continued growth and innovation exemplify the type of transformative impact we aim to achieve through our investments, paving the way for a sustainable and inclusive low-carbon economy,” she added.
Saurabh Jhalaria, Chief Investment Officer of Alternative Credit Strategies at Incred Alternative Investments, said they like Ecozen’s proven product and execution track record, and the way it has transformed the lives of farmers in India.
“With the government of India’s push on sustainable, climate friendly initiatives, we feel the company is poised for profitable growth,” he said.
He also said the opportunity in India and other developing markets is huge and they are excited to partner with Ecozen in its growth journey.
“The investment ties up well with our fund’s thesis on innovative cleantech solutions that can reach the masses,” he added.
James Polan, DFC’s Vice President of Health & Agribusiness, said that DFC is pleased to be supporting an innovative and impactful project with Ecozen that aligns with its priorities of investing in climate adaptation solutions and improving agricultural productivity.
“This is a highly significant transaction that will improve production, reduce food loss, and decrease emissions in India,” he added.