Ecozen Secures Rs 95 Crore in Debt Funding

Climate-focused deeptech startup Ecozen is set to raise Rs 95 crore (around $10.7 million) in debt financing from Momentum Capedge Limited. This marks the third injection of debt for the Pune-based enterprise within the past year. Prior to this, Ecozen successfully raised $12.5 million in debt from UTI International and Spark Capital, as reported exclusively by Startup Superb, along with $23 million from responsAbility Investments AG, Northern Arc Capital Limited, and other investors.

The board at Ecozen has ratified a special resolution allowing the issuance of 950 Series E non-convertible debentures (NCDs) at a face value of Rs 10 lakh each to raise Rs 95 crore, which includes a green shoe option of up to Rs 25 crore, as stated in its filing with the Registrar of Companies (RoC).

According to the filed documents, the debentures offer an interest rate of 11.5% per annum with a tenure of 27 months. The proceeds from this debt will be directed towards immediate capital necessities to bolster the company’s growth.

Founded by Devendra Gupta, Ecozen specializes in climate-smart deep-tech solutions that are based on essential technology stacks such as motor controls, IoT, and energy storage, all powered by solar energy. The main products from the company include Ecotron (solar pump controller), Ecofrost (solar cold storage), solar air conditioners, and solar panels.

As per various sources from startup data intelligence platforms, Ecozen has raised more than $76 million to date through a combination of debt and equity financing. Nuveen Global and Omnivore are recognised as the lead investors in the company.

For the fiscal year ending in March 2025, Ecozen’s operational scale is projected to grow over 2.3 times to Rs 889 crore, up from Rs 377 crore in FY24, while profits are expected to soar 4.7 times to Rs 95 crore. Ecozen finds itself in competition with companies like Powerflex, Inficold, and Khetworks.