Hyderabad-based solar power focused startup raises $2M funding led by Infuse Ventures
Distributed Solar Power focused startup Fourth Partner Energy has announced today that it has raised almost USD 2 million in Series-A funding. Sustainability and clean technology fund, Infuse Ventures has led this round of investment along with existing investors -The Chennai Angels (TCA). The company also received a significant commitment under the Seed Capital Assistance Facility (SCAF) implemented through the United Nations Environment Program and the Asian Development Bank.
What is Fourth Partner Energy?
Founded in 2010 by Vivek Subramanian, Saif Dhorajiwala and Vikas Saluguti, Fourth Partner Energy (4PEL) focuses on financing and building rooftop solar projects for commercial, industrial and residential clients. It has built end-to-end capability including financial structuring, design, turnkey execution, servicing of captive solar assets and is positioned to take a leadership role in this disruptive market segment. the company has a pan-India presence with offices in Hyderabad, Pune, Gurgaon, Chennai, Rajkot and Jaipur. With almost 400 solar installations across India at public and private sector companies, 4PEL offers its industrial and commercial customers the flexibility of choosing a financing model best suited to their needs and allows them to leverage solar energy to reduce their power costs.
Where will the funding go?
The additional round of funding will be used to extend more financing options to the clients of the company. Vivek says,
“We see a lot of capital waiting to enter the Indian market to support the aggressive growth plans of the solar industry. As a fully integrated Renewable Energy Services Companywith a proven track record led by a strong experienced team, 4PEL is uniquely positioned to partner with international and domestic financiers. The financial viability of rooftop solar projects has been proven."
The company is looking to contribute to execute Government’s vision of 40GWp (~USD 40 billion investment) of rooftop solar by 2022.
Infuse Ventures is backed by Government of India’s Ministry of New and Renewable Energy (MNRE) and Technology Development Board, IFC, BP, Godrej Industries, ICICI Bank, SIDBI, Bank of India and Union Bank. Amber Maheshwari, Vice-President, Infuse Ventures believes that the solar sector in India is at an inflection point today with the coming together of various factors like increasing parity with grid power, regulatory support through norms like net metering and increase in government’s targets. The biggest problem holding the sector back is availability of finance which the Company will focus on.
Narayanan from the Chennai Angels says,
"Today, solar energy cost has achieved parity with several electricity boards and it is a matter of time before we go substantially lower. Rooftop solar will explode over the next few years.”