GPS Renewables raises $50M in debt led by consortium of major banks and NBFCs

GPS Renewables, a prominent Indian firm in the clean energy sector, has raised $50 million in debt funding from a consortium of major banks and NBFCs. 

The funding round includes contributions from Punjab National Bank, HDFC, Yes Bank, HSBC Bank, Kotak Mahindra Bank, ICICI Bank, Citibank, Vivriti Capital, Northern Arc, Spark Capital, Tata Capital, and the Small Industries Development Bank of India (SIDBI).

The company plans to use these funds to expand its biofuel production capabilities across India.

Foundational growth and current standing

Founded by IIM-B alumni Mainak Chakraborty and Sreekrishna Sankar, GPS Renewables has made significant strides in the biofuels industry.

With prior equity funding of $20 million from investors like Neev Fund II by SBICap Ventures, the Netherlands-based Hivos-Triodos Fund, and Hyderabad-based Caspian Impact Investments, the company has built over 100 biogas plants, including Asia's largest RNG facility in Indore.

The company reported a turnover of $60 million for the fiscal year 2023-24, marking a 225% growth from the previous year.

Expansion and international collaborations

In addition to enhancing its domestic operations, GPS Renewables has expanded internationally by acquiring the Germany-based Proweps Envirotech GmbH.

The company also announced a joint venture with Indian Oil Corporation to develop compressed biogas projects under its GPSR Arya platform. These moves are part of a broader strategy to promote sustainable green energy practices both within and outside India.

Impact on the Indian biofuel sector

The funding is expected to significantly aid the company in executing its extensive Memorandums of Understanding, valued at $540 million, for various biofuel projects. The development aligns with the Indian government's amendment of the 2018 National Biofuel Policy, aiming to increase biofuel production and introduce Ethanol-blended petrol with up to 20% ethanol nationwide.

Tilak Minocha, Chief Finance Controller at GPS Renewables, said, "At GPS, our aim is to lead the way in India’s clean energy shift. To achieve this goal, we must enhance biofuel production capacity and streamline adoption processes. The current round of funding will allow us to accelerate our expansion efforts and promote India’s transition to sustainable green energy."