The investment is expected to support CleanMax Solar as it expands its renewable energy portfolio – facilitating renewable energy buying for corporates through the construction of a network of private solar farms across India.Vishal Krishna
Renewable energy provider CleanMax Solar on Tuesday said it has raised Rs 275 crore in equity funding from UK Climate Investments (UKCI). This is the third marquee institutional investor to support the company’s growth ambitions, having secured equity financing of up to Rs 700 crore from affiliate of Warburg Pincus, and the International Finance Corporation in 2017.
CleanMax makes rooftop solar and open access solar for the commercial and industrial (C&I) segment. According to a report by Bridge to India (BTI), the company has a cumulative Indian market share of 17 percent in rooftop, and nine percent in open access solar, respectively, as of March 2018.
Commenting on the fund raise, Kuldeep Jain, Founder and Managing Director of CleanMax Solar, said,
“Corporates are quickly adopting renewables sourcing at scale to achieve the twin benefits of profit improvement and carbon footprint reduction. We are excited with our aim to enhance our portfolio from 500 MW to 2000 MW in the next three years.”
The latest funding is expected to support CleanMax Solar as it expands its renewable energy portfolio by facilitating renewable energy buying for corporates by constructing a network of private solar farms across India.
CleanMax Solar already counts some of the leading corporates as its clients, including Adobe India, United Breweries, Volvo India, Tata Motors, TVS Group, ACC, SKF, Mahindra Group, and others.
Speaking about the investment, Sir Dominic Asquith, British High Commissioner to India, said,
“This investment showcases how the UK and India are working together to promote mutual prosperity, clean growth, and investment.”
UKCI is a joint venture between the Green Investment Group and the UK Government’s Department for Business, Energy, and Industrial Strategy. The fund is managed by the world’s largest infrastructure manager, Macquarie Infrastructure and Real Assets, and aims to help developing economies tackle climate change and promote cleaner and greener growth.
UBS Securities India Private Limited was the sole financial advisor to CleanMax on this transaction.
Richard Abel, Managing Director of UK Climate Investments, said:
“CleanMax Solar is helping businesses in one of the world’s fastest growing economies rethink how they produce and consume electricity. Our partnership will accelerate India’s transition to a low-carbon future.”
The company's operating capacity has grown from 24 MWp in 2015-16 to more than 500 MWp in 2018-19, and the company expects to expand its customer base from 120 corporates to 300 corporates by 2022.