April 29, 2024

By Lynda Kiernan-Stone, Global AgInvesting Media

Ecozen, a Pune, India-based leader in climate-smart technology solutions, announced it has closed on $30 million comprising a mix of debt and equity thanks to continued support from Nuveen and other existing investors. As part of the fundraise, new debt support was also included from InCred Credit Fund and the U.S. International Development Finance Corporation (DFC) through Ecozen’s exclusive advisor Setuka Partners. 

“Supporting companies like Ecozen aligns perfectly with Nuveen’s commitment to invest in businesses that have a profound impact on climate change mitigation and resilience,” said Rekha Unnithan, managing director and head of private equity impact investing, Nuveen. “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.”

Founded by Devendra Gupta, Prateek Singhal, and Vivek Pandey, Ecozen began with a focus on irrigation and water conservancy with the development of a solar-powered irrigation pump. However, the scope of the company soon expanded to address challenges faced along the entire perishable food supply chain, leading the company to make solar-powered systems that are a viable solution for small and marginal farmers in India. 

Today, the company has transformed the agricultural irrigation and cold chain industries, respectively, through its pioneering products: 

The Ecotron – an irrigation tool that uses IoT, analytics, proprietary algorithms, and diagnostics to help farmers make informed irrigation decisions. 

The Ecofrost –  an off-grid, solar-powered, portable corn storage room with thermal energy storage to provide backup for on-farm, post-harvest cooling and storing of perishable produce. 

Utilizing advanced IoT, advanced motor controls, and energy storage technologies, these modular, clean energy innovations have boosted the incomes of more than 180,000 farmers, and have cut greenhouse gas emissions by 2 million tons while preventing more than 50,000 metric tons of food loss. 

“We like Ecozen’s proven product and execution track record, and the way it has transformed the lives of farmers in India. With the government of India’s push on sustainable, climate-friendly initiatives, we feel the company is poised for profitable growth,” said Saurabh Jhalaria, CIO – alternative credit strategies, Incred Alternative Investments. 

“The opportunity in India and other developing markets is huge and we are excited to partner with Ecozen in its growth journey. The investment ties up well with our fund’s thesis on innovative cleantech solutions that can reach the masses.”

Having grown fivefold and increasing profits threefold over the past two years, Ecozen stated it intends to use this fresh capital to further its commitment to climate-smart technologies as it anticipates doubling its revenue in the current fiscal year thanks to outsized demand for its products. 

It also intends to leverage its tech stack of advanced motors and controls, thermal energy storage, AI, and IoT to enter new segments that are transitioning to cleaner energy sources. 

“Ecozen is on an accelerated growth path, driven by the increased market demand for our pioneering climate-smart solutions,” said Devendra Gupta, CEO and co-founder, Ecozen. “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 scaleI thank our investors, Nuveen and other existing equity investors, for their continued support which will help us cater to the present opportunity,” continued Gupta.  “We are also happy to have institutions like the DFC and InCred partner with us in our journey of catalyzing climate-smart solutions for agriculture and other key sectors in the future.”

“DFC is pleased to be supporting an innovative and impactful project with Ecozen that aligns with our priorities of investing in climate adaptation solutions and improving agricultural productivity,” added James Polan, vice president of health & agribusiness, DFC. “This is a highly significant transaction that will improve production, reduce food loss, and decrease emissions in India.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and Agtech Intel News. She can be reached at lkiernan-stone@globalaginvesting.com.

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