Freyr Energy Secures Strategic Investment to Propel Solar Solutions Growth

Freyr Energy Secures Strategic Investment to Propel Solar Solutions Growth

The funding marks a strategic move towards a sustainable energy revolution.

Freyr Energy, a prominent technology-driven rooftop solar firm based in India, has raised an equity investment totaling INR58 crore (approx. US$7 million). Since its inception in 2014, the company has been a pivotal force in driving sustainable practices, fostering the widespread adoption of solar energy among retail customers. This includes homeowners and micro, small and medium-sized enterprises (MSMEs) across India, who are now increasingly turning to solar solutions as a means to significantly reduce electricity costs.

Investment for a sustainable future

The funding round was spearheaded by EDFI ElectriFI, a European Union-backed impact investment facility managed by EDFI Management Company, which contributed US$3 million. Joining the investment were other notable backers, including Schneider Electric Energy Asia Fund (SEEAA), Lotus Capital LLC, Maybright Ventures and VT Capital.

CEO of EDFI Management Company, Rodrigo Madrazo, conveyed his excitement about this impactful investment, recognizing the untapped potential in India’s fragmented solar market for retail consumers. Freyr Energy’s blend of technological innovation and consumer financing is expected to facilitate a smooth transition to solar power, reducing electricity costs for end-users.

Gilles Vermot Desroches, President of SEEAA, praised Freyr Energy for their potential role in India’s energy transition, focusing not only on clean energy production but also on smart energy consumption. The company’s vision, alongside the strength of its leadership, were key factors influencing SEEAA’s continued investment support.

Co-Founders of Freyr Energy, Radhika Choudary and Saurabh Marda, expressed their enthusiasm about the fundraising and the inclusion of like-minded investors. They stated that this strategic investment reaffirms Freyr Energy’s dedication to empowering Indian retail customers. The funds raised will be utilized to invest in team expansion, product development and marketing, facilitating the continued rapid scaling of the company.

A market ripe for transformation

Harnessing solar energy has proven to be economically advantageous, as demonstrated by a recent revelation that India saved a substantial US$4.2 billion from solar power in the first half of 2022 alone. This impressive cost reduction complements Freyr Energy’s vision to offer sustainable and cost-effective energy solutions.

Abhishek Agarwal, Founder & Managing Partner of Lotus Capital LLC, highlighted the enormous market opportunity presented by solar power, which remains largely underutilized in India’s retail sector despite being significantly more cost-effective than grid power. Freyr Energy’s positioning allows it to emerge as a market leader while generating considerable economic and environmental benefits.

Past funding success

Back in April 2021, the company had already shown promise when it secured an equity investment of INR18 crore (approx. US$2.5 million) from prominent investors, including Total Carbon Neutrality Ventures, Schneider Electric Energy Access Asia and C4D Partners. This earlier round of funding set the stage for the current investment and underscored the continuous investor confidence in Freyr Energy’s growth trajectory and impact potential.

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Header image courtesy of Pexels

Press release link: https://www.pv-magazine-india.com/press-releases/freyr-energy-raises-inr-58-crore-equity-funding/ 

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