Ecozen raises $30 million via debt and equity

Ecozen, a company that develops climate-smart technology solutions, has raised $30 million in a mix of debt and equity.

• Also read:Ahead of elections, FPIs pull out ₹325 crore from Indian equities in April first week

A media statement said this infusion of capital includes continued support from Nuveen, other existing equity investors and new debt support from InCred Credit Fund and the US International Development Finance Corporation (DFC) through Ecozen’s exclusive advisor Setuka Partners LLP.

The statement said 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. 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, AI and IoT to enter new segments undergoing a transition to cleaner energy sources, it said.

The company is also set to expand its offerings and market presence into Africa and South-East Asia.

Expediting tech transition

It said that Ecozen has made solar-powered systems a viable solution for small and marginal farmers in India and its pioneering products – Ecotron and Ecofrost – have transformed the agricultural irrigation and cold chain industries, respectively, over the past decade.

Utilising advanced motor controls, IoT and energy storage technologies, these modular, clean energy innovations have not only boosted the incomes of over 1.80 lakh farmers but have also cut greenhouse gas emissions by two million tonnes and prevented more than 50,000 tons of food loss, it said.

Quoting Devendra Gupta, Chief Executive Officer and Co-Founder of Ecozen, the statement said: “Ecozen is on an accelerated growth path, driven by the increased market demand for our pioneering climate-smart solutions. We are committed to empowering customers and expediting the transition to climate-smart technologies on a global scale. I thank our investors, Nuveen and other existing equity investors, for their continued support which will help us cater to the present opportunity. We are also happy to have institutions like the DFC and InCred partner with us in our journey of catalysing climate-smart solutions for agriculture and other key sectors in the future.”

Rekha Unnithan, Managing Director and Head of Private Equity Impact Investing at Nuveen, said: “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.”

Saurabh Jhalaria, CIO – Alternative Credit Strategies at Incred Alternative Investments, said: “We 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.”

• Also read:In charts| How Indian equity and debt markets fared in FY24? 

James Polan, DFC’s Vice President of Health & Agribusiness, said: “DFC is pleased to be supporting an innovative and impactful project with Ecozen that aligns with our 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.”