Ecozen To Raise $12.6 Mn Debt To Scale Solar-Powered Offerings

SUMMARY

Ecozen’s board approved the issuance of 616 and 500 NCDs to UTI International and Spark Capital, respectively, at a face value of INR 10 Lakh each

In its filings with the RoC, the startup said that the fresh proceeds will be utilised for immediate capital requirements for aiding the growth of the business

Founded in 2010, Ecozen sells solar-powered water pumps, cold storage solutions, air conditioners and solar rooftop panels

Pune-based deeptech startup Ecozen is raising INR 111.6 Cr (nearly $12.6 Mn) in debt funding from UTI International and Spark Capital.

As per filings with the Registrar of Companies (RoC), Ecozen’s board on October 31 approved the issuance of 616 non-convertible debentures (NCDs) to UTI International Wealth Creator 4 at a face value of INR 10 Lakh each. The board also gave its nod to allot 500 NCDs to Spark Alternative Investment Firm.

In its filings, the startup said that the fresh proceeds will be utilised for immediate capital requirements for aiding the growth of the business.

Founded in 2010 by Devendra Gupta, Prateek Singhal and Vivek Pandey, Ecozen offers solar-powered systems to small and marginal farmers. Its product stack includes solar-powered water pumps, cold storage solutions, air conditioners and solar rooftop panels.

As of January 2025, the company claims to have manufactured more than 3 Lakh Ecotron solar pump controllers, with 1 Lakh units produced between March and December 2024 alone.

The latest development comes ten months after the startup bagged more than $23 Mn in a debt round led by responsAbility Investments AG. Including the current round, the startup has raised more than $76 Mn to date in a mix of debt and equity. It is also backed by the likes of Northern Arc Capital, Maanaveeya Development & Finance Private Limited, and others.

As per Tofler, the deeptech startup’s revenue soared 57.4% to INR 428.7 Cr in the fiscal year 2023-24 (FY24) compared to INR 272.3 Cr in the year ago period. Meanwhile, profits zoomed 250% to INR 20 Cr in the fiscal under review compared to INR 5.77 Cr in FY23. The company is yet to file its financial statements for FY25.

The financing round comes at a time when deeptech startups continue to be the flavour of the season. From state-backed funds to VCs, investors are accumulating dry capital to back these R&D-led startups.

Earlier this month, the Karnataka government announced an INR 600 Cr initiative to back startups in emerging areas such as artificial intelligence (AI), machine learning, quantum computing, robotics, among others.

In September, Rohit Bafna-led early-stage accelerator 888VC also launched its maiden INR 175 Cr fund to back early-stage deeptech startups. In the same month, eight prominent India and US-based VC firms banded together to launch ‘India Deep Tech Alliance’ to pump more than $1 Bn in homegrown deeptech startups over the next decade.

On the back of this, deeptech startup Intangles bagged $30 Mn in its Series B round led by Avataar Venture Partners last month. In August, another deeptech startup Armatrix Automations was raising INR 18.43 Cr in its seed round led by pi Ventures.