Indian energy efficiency startup Smart Joules raises $8M in debt from Denmark's IFU

Smart Joules, an Indian energy efficiency startup, has raised $8 million in debt funding from the Investment Fund for Developing Countries (IFU), a Development Financial Institution owned by the Government of Denmark.

The move is part of a broader green strategic partnership between India and Denmark aimed at fostering energy efficiency and reducing carbon emissions.

The startup plans to use the raised capital to expand its cooling-as-a-service (CaaS) partnerships across healthcare and hospitality sectors and venturing into cooling-intensive industries such as data centres, pharmaceutical manufacturing, and commercial offices.

What does Smart Joules do?

Founded in 2014 by Arjun Gupta, Smart Joules has been at the forefront of energy efficiency with its industry-first CaaS solution. The startup's proprietary DeJoule technology, an advanced IoT solution for building and utility management, is designed to optimize operations for maximum energy savings.

Smart Joules' comprehensive JouleCOOL solution encompasses design, implementation, operations, maintenance, and energy optimization services, aiming for a minimum of 20% reduction in energy costs for its clients.

Reducing 29 million tonnes of carbon emissions by 2030

"We are thrilled to be the first recipients of this investment and this couldn’t have come at a better moment in our journey. As a leap towards achieving our vision to reduce 29 million tonnes of carbon emissions by 2030, this investment will help us execute our robust pipeline of portfolio-wide CaaS partnerships," said Arjun Gupta, Founder and CEO, Smart Joules.

He said the startup will go towards saving energy, carbon emissions and costs, allowing customers to meet their decarbonisation and profitability objectives simultaneously and starting immediately.

Smart Joules aims to execute a robust pipeline of CaaS partnerships, with each dollar invested contributing to energy, carbon emissions, and cost savings for customers. Smart Joules' efforts are expected to result in an incremental reduction of approximately 7.5 lakh tonnes of CO2 emissions.

Impact and expansion

Since its inception, Smart Joules claims to have saved 23 crore kWh of energy, which translates to Rs 181 crore in energy costs and 1.6 lakh tonnes in carbon emissions. The startup clientele includes prominent names in the Indian healthcare sector, such as Apollo Hospitals, KIMS, and Aster.

The raised capital will also enable Smart Joules to extend its services to the hospitality sector, starting with Le Meridien and further into commercial office buildings, data centres, and industrial facilities.

Operating on a pay-as-you-save model

Smart Joules operates on a "pay-as-you-save" model, eliminating the need for upfront payments from customers. This innovative approach ensures that clients pay with the savings generated from Smart Joules' solutions, offering a "zero risk" investment in energy efficiency.

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