Azure Power, a solar energy service provider, has raised series A funding from Helion Venture Partners and Foundation Capital. Azure is a solar IPP (Independent Power Producer) and provides services like power generation, transmission, and distribution and operations
management. The investment amount is undisclosed.
"Money will be used to build power plants and will go towards working capital of the company," said Inderpreet Wadhwa, CEO of Azure Power India.
Azure has several grid and off-grid projects under development across India. Azure has offices in Delhi and Delaware, US. It provides commercial and utility solutions to companies, helping them set up solar power plants and is presently developing solar power plants in Punjab, West Bengal and Haryana. Azure sets up power plants and then sells the electricity to the clients. The power plant is owned by Azure only. "We are currently focusing on utility part of the business," said Wadhwa.
Wadhwa added that fund raising in the present enviornment was not easy. But he belives that raising funds in this environment validates the business. "Your plans are fully validated and scrutunised by the investors," he added.
Azure Power was incorporated in USA in November 2007 and the Indian entity was registered in February. Wadhwa also raised angel investment for Azure from family and friends in May this year.
This is Helion Ventures first investment in the cleantech space. The funds have been raised to expand and scale operations of the company. Sanjeev Aggarwal, Managing Director at Helion Advisors Pvt. Ltd. and Ashmeet Sidana, General Partner at Foundation Capital will join the board of Azure Power.
"We offer a portfolio of solar energy solutions for commercial, government and utility customers. This area is a huge focus for the government of India in the 11th five year plan," said Inderpreet
Wadhwa, CEO of Azure Power India.
Helion Ventures has raised funds over $300 million and has invested in firms such as voice SMS company Kirusa, online ad network Komli and Bangalore's HummingBird Suites. Its most recent investments are messaging platform SMS GupShup and new media firm 9.9 Mediaworx.
Foundation Capital raised a $750 million fund in April this year, and has set aside $250 million of that fund for investments in clean technology space.