[Funding alert] Solar solution startup Fourth Partner Energy raises $15M in third round from responsAbility
Bengaluru-based solar solution startupon Wednesday said it has raised $15 million in its third round of funding from Zurich-based development asset manager ResponsAbility Investments AG.
"This facility will be utilised for construction of new assets across the startup's distributed solar and open access portfolios," the startup said in a statement.
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This is the third round of funding anchored by responsAbility into Fourth Partner Energy through its dedicated climate finance funds. It had earlier deployed two rounds of financing into the startup in 2016 and 2017.
Pradhyum Reddy, who led the transaction from Fourth Partner Energy, said, "In our 10th year of operations, we are looking to add capacity of close to 350 MW across both distributed solar and open access portfolios. We are building solar parks in Maharashtra, Tamil Nadu, and Uttar Pradesh."
Market sentiment for solar solutions is robust, and Fourth Partner Energy believes in its value proposition of cost-savings on electricity, and low-carbon emissions have been amplified during this global pandemic.
"This third line of credit from responsAbility reflects its confidence in our industry expertise. It is also a positive indicator of the faith the investment and lender communities have on the country's solar growth potential. We will be using these funds towards constructing new assets for our marquee customers," he added.
Founded in 2010, Fourth Partner Energy has grown to become one of India's largest startups in the distributed solar sector. Today, the startup manages over 400 MW of assets for over 150 clients in India.
responsAbility's 'Access to Clean Power Fund' is a private debt fund that seeks to address the lack of access to clean power globally, with a strong focus on sub-Saharan Africa, South, and Southeast Asia.
The fund targets companies that provide solutions to households without access to electricity, and to businesses looking for cleaner, cheaper, and more reliable energy. Beyond the financing of the dynamic off-grid energy sector, it will also actively address the solar potential for the commercial and industrial sector.
Talking about this transaction, Sameer Tirkar, Principal Climate Finance for responsAbility, said, "We believe strong partnerships can lower the barriers to green financing. We are bullish on the potential of India's solar sector."
Fourth Partner Energy commenced international operations in FY20, with South and Southeast Asia being the focus markets. It has also forayed into solar-powered EV charging infrastructure through its 50:50 JV with leading commercial EV fleet operator Lithium Urban Technologies.