Key Takeaways:
- New Funding: Ecozen has raised $30 million through a combination of debt and equity to support its expansion and innovation in climate-smart technologies.
- Investor Support: The round includes contributions from existing investors like Nuveen and new debt agreements with InCred Credit Fund and the U.S. International Development Finance Corporation (DFC).
- Growth and Expansion: Funds will enhance Ecozen’s product offerings and market presence, particularly in Africa and Southeast Asia.
- Impact Achievements: Ecozen’s products have significantly reduced greenhouse gas emissions and food loss, benefiting over 180,000 farmers.
Introduction to the Funding Round
Ecozen, a pioneer in developing climate-smart technology solutions, announced today a substantial $30 million funding round comprised of both debt and equity. This financial boost was supported by ongoing investors including Nuveen and new contributions from InCred Credit Fund and the U.S. International Development Finance Corporation (DFC), facilitated by Setuka Partners LLP.
Utilization of the New Capital
The fresh capital will cater to the increasing demand for Ecozen’s innovative products such as the Ecotron and Ecofrost, which have revolutionized agricultural practices through enhanced irrigation and cold chain processes. This funding will also support the company’s ambition to double its revenue in the current fiscal year by entering new sectors like milling, mobility, retail, and industry. Its advanced technology stack includes motors and controls, thermal energy storage, AI, and IoT.
Company Growth and Market Expansion
Ecozen has demonstrated remarkable growth, increasing its profits threefold and expanding its operations fivefold over the past two years. The CEO and Co-Founder, Devendra Gupta, remarked, “The capital raised will enable us to scale our operations and deepen our market penetration in domestic and international territories. We are committed to empowering customers and expediting the transition to climate-smart technologies on a global scale.”
Statements from Investors and Partners
Rekha Unnithan of Nuveen highlighted Ecozen’s initiatives’ alignment with their investment philosophy, stating, “Ecozen’s continued growth and innovation exemplify the type of transformative impact we aim to achieve through our investments, paving the way for a sustainable and inclusive low-carbon economy.” Similarly, Saurabh Jhalaria from InCred noted, “With the government of India’s push on sustainable, climate-friendly initiatives, we feel the company is poised for profitable growth.”
DFC’s Support and Future Outlook
The DFC’s involvement signifies a strong endorsement of Ecozen’s strategies to improve agricultural productivity and climate adaptation solutions. “This is a highly significant transaction that will improve production, reduce food loss, and decrease emissions in India,” a DFC representative expressed.
Image provided by Ecozen
