Ecozen Secures Rs 111.6 Crore in Debt Funding for Climate-Focused Solutions

Ecozen, a startup dedicated to climate-focused deeptech, has successfully obtained Rs 111.6 crore (approximately $12.5 million) through debt funding from UTI International Wealth Creator and Spark Alternative Investment fund. According to a filing from the Registrar of Companies (RoC), Ecozen’s board has sanctioned the issuance of 500 non-convertible debentures (NCDs) to Spark Alternative Investment Firm and 616 NCDs to UTI International Wealth Creator, each at a face value of Rs 10 lakh, to facilitate the raised amount. The funds will be allocated towards immediate capital needs to bolster the company’s growth.

Innovative Solutions by Ecozen

Founded by Devendra Gupta, Ecozen specialises in climate-smart deep tech solutions and advanced technology stacks, such as motor controls, IoT, and energy storage harnessing solar power. The company offers two primary products: Ecotron and Ecofrost.

Impressive Growth Metrics

Ecozen reports an impressive compound annual growth rate (CAGR) exceeding 83% in revenue growth over the last three years. The firm has produced over 300,000 Ecotron solar pump controllers to date, with an extraordinary 100,000 units manufactured between March and December 2024 alone.

Funding Journey

To date, Ecozen has successfully raised $76.4 million in funding, with Nuveen being its lead investor. Earlier this year, in January, the company secured $23 million in debt from responsAbility Investments AG, Northern Arc Capital Limited, Maanaveeya Development & Finance Private Limited, among others.

Financial Performance Overview

While Ecozen is yet to announce its financial results for FY25, its revenue from operations in FY24 reached Rs 458 crore, up from Rs 293 crore in FY23. The company also saw its profit rise to Rs 20 crore in FY24.

Competitive Landscape

Ecozen faces competition from other players such as Powerflex, Inficold, and Khetworks. Its extensive product range includes Ecotron, Ecofrost, Eco-Freeze, Ecozen atta chakki, Ecotron Omni, and e-bike controllers, addressing a variety of industries and customer needs.