In a strategic move to strengthen its foothold in the renewable energy sector, Godrej has raised its stake in Gurugram-based rooftop solar startup Zunroof with a fresh investment of ₹20 crore or approximately $2.3 million. This funding has come from ANBG Enterprise LLP, Godrej Family Office, and a small amount from investor Ravindernath Chadha. This reflects Godrej’s commitment to sustainable energy solutions and enhancement of its portfolio in the green technology space.
PC: Gemius
The equity of Zunroof was sanctioned with an allotment of 75,960 equity shares for ₹2,638 an issue as reported from regulatory filings based on sources with the Registrar of Companies. In aggregate, the firm has seen this investment push the raised capital past the $9 million threshold since Zunroof was formed. With a pre-existing interest of 51%, this injection should serve to bolster that number for Godrej at a level well past an equity majority and therefore advance its hold over Zunroof’s assets in this respect.
Zunroof is in the business of designing, installing, and financing rooftop solar systems. The company has invested in artificial intelligence to maximize the efficiency of its solar solutions, which has really placed it at the helm of the fast-changing renewable energy sector. Since 2020, Zunroof has grown to include IoT-enabled smart home products, making it a comprehensive player in the clean energy and smart home sectors.
Recent disclosures of Zunroof’s financial performance for fiscal year 2024 or FY24 indicate that losses have been narrowed down commendably to 51.7%. This means the company has been streamlining operations to improve financial health. However, it is worth mentioning that the operating scale of Zunroof declined by 11.46%, with revenues reported at ₹29.84 crore for the fiscal year ending March 2024. That is a contraction that may indicate that while the company is working towards profitability, it finds it difficult to scale up effectively.
Zunroof competes with rivals such as SolarSquare, Cleantech, Mysun, Oorjan, and Freyr Energy. The solar startup industry has recently started to attract more investor interest despite the struggles that have occurred in funding such startups in the last few years. Major investments in the competition include $40 million in SolarSquare and $30 million in Glow, indicating increased interest in renewable energy.
The increased investment from Godrej not only reinforces its belief in Zunroof’s potential but also signals a broader commitment to the solar energy sector in India. With increasing awareness about sustainable energy and the increasing adoption of solar solutions among consumers, Zunroof is well-positioned to capitalize on these trends. The financial support provided by a respected brand such as Godrej is most likely to help Zunroof scale its growth strategies so it will be able to build stronger service offerings and push to a wider market range.
Godrej’s recent investment in Zunroof forms a major leap towards renewable energy solutions in India. As the demand for solar energy continues to grow, Zunroof’s innovative approach and Godrej’s backing could pave the way for significant advancements in the sector. This partnership not only aims to bolster Zunroof’s operations but also underlines the importance of sustainable practices in the modern economy. As the company navigates its growth trajectory, the ongoing support from Godrej is expected to play a crucial role in its success.
