CleanMax Solar raises ₹275 crore from Macquarie-managed UK Climate Investments

Mumbai: CleanMax Solar, which provides renewable energy for corporates, on Tuesday said that it has raised ₹275 crore in equity funding from UK Climate Investments LLP (UKCI).

UKCI is a joint venture between the Green Investment Group and the UK Government’s Department for Business, Energy and Industrial Strategy and is managed by Macquarie Infrastructure and Real Assets. UKCI is a £200 million pilot investment programme mandated to invest in India and sub-Saharan Africa.

This is the third institutional investor to invest in the company, which has previously raised equity financing of ₹700 crore from Warburg Pincus and International Finance Corp. in 2017.

CleanMax claims to be a market leader in both rooftop solar and open access solar for the commercial and industrial segment, with a cumulative India market share of 17% in rooftop and 9% in open access solar, respectively, as of March 2018, the company said citing a report from renewable energy research firm Bridge To India.

UKCI’s investment will support CleanMax as it expands its renewable energy portfolio – facilitating renewable energy buying for corporates through the construction of a network of private solar farms across India.

“Corporates are quickly adopting renewables sourcing at scale to achieve the twin benefits of profit improvement and carbon footprint reduction. This investment, along with the knowhow of Macquarie will enable CleanMax to continue being the market leader in B2B solar sector. We are excited with our aim to enhance our portfolio from 500 MW to 2,000 MW in the next 3 years," said Kuldeep Jain, founder and managing director of CleanMax Solar.

CleanMax counts many leading corporates among its clients, including Adobe India, United Breweries, Volvo India, Tata Motors, TVS Group, ACC, SKF, Mahindra Group and others.

CleanMax Solar’s operating capacity has grown from 24 MW in 2015-16 to more than 500 MW in 2018-19, and the company expects to expand its customer base from 120 corporates to 300 corporates by 2022. The company has already expanded its portfolio in the Middle East and is exploring further expansion in other South-East Asian countries.

“CleanMax Solar is helping businesses in one of the world’s fastest growing economies rethink how they produce and consume electricity. Our partnership represents an exciting opportunity to help take their platform to the next level – underpinning investment in new renewable generation capacity whilst accelerating India’s transition to a low-carbon future," said Richard Abel, managing director of UK Climate Investments.

UBS Securities India Pvt. Ltd was the sole financial advisor to CleanMax on this transaction.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.