InCred Credit Fund and DFC contributed to the finance while existing investor Nuveen led the equity with participation from others. According to the startup’s announcement, the funds will be used for product development and innovation. Ecozen claims to have grown fivefold in the last two years, with profits increasing threefold. It plans to double its sales in the current fiscal year.
Deeptech firm Ecozen has raised $30 million (about INR 249 crore) in equity and loan funding.
The equity was led by existing investor Nuveen, with participation from others, and the financing was provided by InCred Credit Fund and the US International Development Finance Corporation.
The business intends to use the new funding for product development and innovation.
In January of last year, the Pune-based business raised $25 million, backed by Nuveen. It has raised around $70 million in debt and equity to date.
Ecozen wants to broaden its present capabilities and grow into Africa and Southeast Asia, according to a news release.
Ecozen provides climate-smart deep tech solutions and core technology stacks such as motor controls, IoT, and energy storage that use solar power. The company produces two main products: Ecotron and Ecofrost.
Ecozen was founded by Devendra Gupta, Prateek Singhal, and Vivek Pandey. It provides solar-powered solutions to small and marginal farmers. The business says that two of its technologies, Ecotron and Ecofrost, have revolutionized the agricultural irrigation and cold chain industries, respectively.
“The funds raised will allow us to expand our activities and increase our market penetration in both domestic and international countries. “We are committed to empowering customers and accelerating the global transition to climate-smart technologies,” Gupta stated.
Ecozen manufactures its modular products using superior motor control, IoT, and energy storage technology. According to the business, these goods have increased the incomes of over 180,000 farmers while also reducing greenhouse gas emissions by 2 million metric tons and preventing more than 50,000 metric tons of food loss.
Ecozen claims to have grown 5 times in the last two years, with profits increasing 3 times as well. It expects to double sales in the current fiscal year, boosted by strong demand for existing goods, and intends to use its technology stack of superior motors and controls, thermal energy storage, AI, and IoT to reach new markets as they convert to cleaner energy sources.
Furthermore, the company intends to increase its capabilities and market presence in Africa and Southeast Asia.
The business raised about $31.4 million in funding in two rounds in 2022. It had stated that it would expand its business and strengthen its ‘export-related activities’.
The firm is backed by Omnivore, HDFC Bank, Axis Bank, and Northern Arc Group, among others.
