Global private equity fund Warburg Pincus has invested Rs 700 crore in CleanMax Solar, a rooftop solar developer for the corporate sector. The fund will have a significant minority stake in the company, a senior company official said.
“CleanMax will use funds to continue rapid growth in the rooftop and open access solar power markets in India, while pursuing growth in select international markets (Middle East and South-East Asia), and growing the nascent, yet promising energy storage solutions business,” said Kuldeep Jain, founder, CleanMax Solar, in an exclusive interview with ET.
Jain, the former head of energy at McKinsey India, founded CleanMax Solar in 2011. The company serves corporate clients such as the Tata group, Mahindra group, TVS group, Carlsberg India, Konecranes India, Carl Zeiss India, Manipal Education and Medical Group, SKF India, Mindtree and Alkem Laboratories. The company that was funded by a group of high networth individuals in 2015 has cornered around 24% market share in the country’s rooftop solar market.
The HNI investors invested about Rs 17 crore for a 6% stake in 2015, valuing it at about Rs 283 crore. The company has installed more than 200 projects for over 50 corporates in sectors such as automobiles, education, pharmaceuticals, food & beverages, and information technology, with a combined on-site capacity of more than 100 mw. According to Jain, the company aims to generate around 200-250 mw of power in the current financial year as against 90 mw it generated last year.
It develops projects on a turnkey basis, providing power on a per-kWh basis, under long-term Power Purchase Agreements, at rates cheaper than prevailing grid. “Warburg Pincus’ investment will enable us to pursue additional growth opportunities beyond India.”