Noida-based weather forecasting services provider Skymet Weather Services Pvt. Ltd has raised its Series C round of funding from a foreign institutional investor, a top company executive told VCCircle.
The company raised the funding from InsuResilience Investment Fund, which is set up by German government-owned development bank KfW and managed by Swiss-based impact investment manager BlueOrchard Finance, said Jatin Singh, managing director of Skymet.
The Luxembourg-based investment firm has picked up 26.8% stake in Skymet as part of the transaction, which also saw the firm’s existing investors impact venture fund Omnivore Partners, British media conglomerate Daily Mail and General Trust plc (DMGT) partially exiting.
“This investment allows Skymet to expand its capabilities in mitigating weather risks across India. Their (InsuResilience’s) knowledge of climate change and insurance makes them an ideal partner for us,” Singh said, without disclosing the quantum of funding.
A person privy to the development said InsuResilience Investment Fund put in $8-10 million (Rs 51-64 crore) in Skymet.
The company will use the funds to expand its automatic weather stations (AWS) network and secure new business in weather data, crop measurement, climate analytics and disaster management, said Singh, an alumnus of Boston University. The firm claims to be having the country’s largest network of automatic weather stations at 6,000.
The investment banking arm of EY (formerly Ernst & Young) acted as financial adviser to Skymet for the transaction.
Skymet, which was launched in 2003, provides climate, weather, and crop analytics to insurance companies, banks, agribusinesses and public sector institutions in India. It also boasts of India’s only lightening detection network, which allows Skymet to track thunderstorms in real time. Through its activities, Skymet is reaching out to more than two million farmers.
“Skymet has built technologies and instruments to mitigate weather risks, thereby supporting farmers to cope with the consequences of climate change,” said Ernesto Costa, co-head of private equity at BlueOrchard.
Skymet had raised its Series B round of funding three years ago from DMGT and Omnivore Partners.
Omnivore Partners invests in Indian startups that develop breakthrough technologies in food and agriculture segments, among others. The impact fund, which counts SIDBI, NABARD, SBI and LIC among its key investors, has backed 12 companies so far.
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