Climate Financing Platform Two Point O Capital Raises $6.3 Mn To Aid Clean Energy Projects Facing Capital Dearth

Climate financing platform Two Point O Capital has secured $6.3 Mn (INR 52.7 Cr) in a seed funding round led by Omnivore. Multiply Ventures, RTP Global, GrowX, Spectrum Impact, and a group of prominent angel investors also participated in the round.

The funding will enable Two Point O to enhance its tech-enabled platform for sourcing, underwriting, financing, and monitoring distributed projects in clean energy sectors, including solar rooftops, energy efficiency equipment, and wastewater treatment.

Besides, the company aims to work with various operating and financial partners to build a high-quality portfolio and manage it through its lifecycle on this platform. 

Two Point O Capital is a climate financing platform for MSMEs and rural enterprises focussed on distributed clean energy projects in the commercial and industrial segments. The startup offers financing solutions, such as leasing, capex financing, and other options, to projects in energy transition sectors, primarily in solar rooftops, energy efficiency, and wastewater treatment.

Founded in 2024 by Archit Mehrotra, Karan Bhutani, and Manya Ranjan, with Shashidhar Reddy joining recently, the founding team boasts over 70 years of combined experience from leading firms such as KKR, McKinsey, Shell, BP, Honeywell, ReNew, Sterlite Power, and GIC. 

The company claims to address a significant gap in debt financing within the distributed clean energy sector by catalysing investments through innovative financial solutions.

“By unlocking capital for distributed energy assets in rural India, the startup empowers businesses nationwide to embrace sustainability. The founding team brings incredible experience from the relevant sectors, and we are excited to partner with them,” Abhilash Sethi, investment director of Omnivore, said. 

Raveen Sastry of Multiply, said, “We are excited to support this talented team as they work to solve one of India’s biggest challenges—bridging the $10 Bn annual gap in financing for clean energy projects.”

With this funding, the company also plans to hire additional staff to strengthen its team.

In a joint statement, the founders of Two Point O said that the investment will help them attract top talent across various functions to build a best-in-class team. 

According to Inc42 data until November 2023, funding for Indian climate tech startups has reached $4 Bn since 2014, slightly surpassing the $2.7 Bn raised by 2016. 

Per the report, the interest in the climate tech space has started getting more diverse with more experiments now increasing across these sub-sectors, including such as green hydrogen, agrifood and life sciences encompassing sustainable agriculture and food production, circular economy involving recycling, sustainable aviation fuel, low-carbon cement, water conservation, among others.