As India turns to renewable energy to help support its population of over 1.3 billion, several startups in the sector have seen mega-deals worth $100M+.
As India grows, the pressure to supply energy to its population of 1.3 billion is increasing — and renewables are quickly becoming one viable option for meeting the country’s energy needs.
According to a recent report from accountancy firm EY, India is the second most attractive country for renewable energy investments, with China in first place and the United States in third. This is in part due to Prime Minister Narendra Modi’s pledge to triple India’s solar power capacity to 175 GW by 2022.
Foreign investors are also showing interest in the space, with New York-based private equity firm Warburg Pincus making its first deal to a renewable energy company — a $100M investment into solar solutions provider Clean Max Enviro Energy Solutions — earlier this quarter.
Using the CB Insights database, we rounded up the top 10 largest equity deals to the Indian renewables space from 2012 – 2017 YTD (8/17/2017). All the deals listed below have been mega-deals, worth $100M+, and together have seen participation from investors ranging from corporates like GE Capital and Goldman Sachs to environment-focused venture funds like Global Environment Fund Management.
The largest equity round to a renewables startup since 2012 went to ReNew Power Ventures, which raised a $265M private equity round in Q4’15. The round was backed by Abu Dhabi Investment Authority, Asian Development Bank, Global Environment Fund Management, and Goldman Sachs.
ReNew Power Ventures has closed four of the ten largest rounds to renewable energy startups in India, raising a total of $942M in disclosed equity funding since its first round in Q3’11. The company officially entered the unicorn club in Q1’17, when its $200M round from Tokyo-based venture firm JERA landed the company a $2B valuation. It is the only energy company to make the top 10 list.
The second-largest deal went to Ostro Energy, with a $230M round from Actis Capital in Q1’15. Ostro’s first project, Tejuva, supplies wind energy in the Jaisalmer district of Rajasthan.
Other top deals have gone to solar power startups like Amplus Energy Solutions, along with clean energy providers like Green Infra.
| Rank | Company | Round Type | Amount ($M) | Date | Round Investors |
|---|---|---|---|---|---|
| 1 | ReNew Power Ventures | Private Equity – IV | $265 | 10/27/2015 | Abu Dhabi Investment Authority, Asian Development Bank, Global Environment Fund Management, Goldman Sachs |
| 2 | Ostro Energy | Private Equity | $230 | 2/12/2015 | Actis Capital |
| 3 | ReNew Power Ventures | Corporate Minority | $200 | 2/14/2017 | JERA |
| 4 | SITAC RE | Corporate Minority | $169 | 1/28/2016 | EDF Energies Nouvelles |
| 5 | Welspun Renewables Energy | Unattributed – II | $165 | 10/13/2015 | GE Capital |
| 6 | Amplus Energy Solutions | Private Equity | $150 | 8/24/2015 | I Squared Capital |
| 7 | ReNew Power Ventures | Private Equity – III | $140 | 7/3/2014 | Asian Development Bank, Global Environment Fund Management, Goldman Sachs |
| 8 | ReNew Power Ventures | Private Equity – II | $135 | 6/5/2013 | Goldman Sachs |
| 9 | Hero Future Energies | Unattributed | $125 | 8/24/2016 | International Finance Corporation |
| 9 | Green Infra | Private Equity | $125 | 11/19/2013 | CDC Group, IDFC Private Equity |