Climate-smart deeptech startup Ecozen raises $30M from Nuveen Global Fund, existing investors

Pune-based climate-smart deeptech startup Ecozen has raised $30 million through a combination of debt and equity. The round saw participation from Nuveen Global Fund and other existing investors, as well as new debt from InCred Credit Fund and the U.S. International Development Finance Corporation (IDFC). 

Ecozen, known for its innovative climate-smart technologies in agriculture, is setting its sights on expanding its market reach globally, particularly in Africa and Southeast Asia.

Expansion and product development

With the newly acquired funds, Ecozen aims to scale up its production capabilities and extend its range of products. The company is well-regarded for its solar-powered systems tailored for agricultural irrigation and cold storage solutions.

CEO Devendra Gupta stated, "Ecozen is on an accelerated growth path driven by increased demand for our pioneering climate-smart solutions." He added that the funding would help deepen the company's market presence and expand operations internationally.

Technology and market impact

Founded by Vivek Pandey, Prateek Singhal, and Devendra Gupta, Ecozen leverages a sophisticated technology stack that includes motor controls, IoT, and energy storage systems that harness solar power. The startup's core products, Ecotron and Ecofrost, have been instrumental in its success. Over the past two years, Ecozen has seen a fivefold increase in growth and a tripling of profits. 

It's also projected to double its revenue in the current fiscal year. The growth trajectory is supported by significant impacts such as boosting the incomes of over 180,000 farmers in India, reducing greenhouse gas emissions by 2 million tonnes, and preventing 50,000 metric tons of food loss.

How well Ecozen is performing financially?

According to startup data intelligence platform TheKredible, Ecozen's revenue surged by 139% to Rs 293.24 crore in FY23 from Rs 122.57 crore in FY22. The startup also turned profitable, recording Rs 5.76 crore in profits in FY23, a significant improvement from a loss of Rs 37 lakh in FY22.

Looking forward, Ecozen plans to use its advanced technology stack to develop decarbonization solutions for other sectors, including milling, mobility, retail, and industry. These solutions aim to replicate the success seen in agriculture and target the decarbonization of various industrial sectors.

Ecozen competes with companies like Powerflex, Inficold, and Khetworks but continues to distinguish itself with its proven product execution and transformative impact on farming in India.