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

The Mumbai-based commercial solar player—which aims to more than double its customer base from 120 corporates to 300 by 2022—will use the amount to support its expansion of renewable energy portfolio from 500 MW to 2 GW in the next three years.

April 23, 2019 Uma Gupta

Corporates are quickly adopting renewables sourcing at scale to achieve the twin benefits of profit improvement and carbon footprint reduction.

Image: Apple Inc.

Mumbai-based commercial solar developer CleanMax Solar has raised Rs 275 crore in equity funding from UK Climate Investments (UKCI). This is the third marquee institutional investor to support CleanMax Solar’s growth ambitions, after equity financing of up to Rs 700 crore from affiliate of Warburg Pincus and the International Finance Corporation in 2017. UBS Securities India was the sole financial advisor to CleanMax on the transaction.

CleanMax Solar expects to expand its customer base from 120 corporates to 300 by 2022. The company will use the UKCI’s funding to support expansion of its renewable energy portfolio, facilitating renewable energy buying for corporates through the construction of a network of private solar farms across India.

Elaborating on CleanMax Solar’s expansion plans, Kuldeep Jain, founder and managing director said: “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 2000 MW in the next 3 years.”

On partnership with CleanMax Solar, Richard Abel, MD of UK Climate Investments, said, “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.”

Highlighting the importance of UK-India partnership in tackling climate change, British High Commissioner to India, Sir Dominic Asquith said: “This investment showcases how the UK and India are working together to promote mutual prosperity, clean growth and investment. This unique partnership marries City of London green finance expertise with the innovation of Indian business to deliver clean energy solutions. The UK and India are at the cutting edge of finance and technology, jointly tackling global challenges like climate change and creating market opportunities for the rest of the world.”

CleanMax operates in both rooftop solar and open access solar for the commercial and industrial (C&I) segment, with a cumulative India market share of 17% in rooftop and 9% in open access solar, respectively, as of March 2018. Its clients include the likes of Adobe India, United Breweries, Volvo India, Tata Motors, TVS Group, ACC, SKF, and Mahindra Group.

CleanMax Solar’s operating capacity has grown from 24 MWp in 2015-16 to more than 500 MWp in 2018-19.

UKCI is a joint venture between the Green Investment Group and the UK Government’s Department for Business, Energy and Industrial Strategy. The fund is managed by the world’s largest infrastructure manager, Macquarie Infrastructure and Real Assets, and aims to help the world’s developing economies tackle climate change and promote cleaner, greener growth.

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