Hyderabad-based clean energy company Fourth Partner Energy has raised $125 million (Rs 930 crore) in equity funding from Norwegian investment fund Norfund and existing shareholder The Rise Fund, which is TPG’s global impact investing platform, the company said in a statement.
Norfund deployed $100 million, marking its first transaction with Fourth Partner Energy while The Rise Fund infused $25 million following its $70 million investment in July 2018.
Proceeds from the fundraise will be used for expansion. Fourth Partner Energy is working on strengthening its onsite and offsite solar presence in the subcontinent as well as key markets across South and Southeast Asia.
The company is targeting 3 GW of installed solar capacity by 2025 and expansion of capabilities across energy storage and EV (electric vehicle) charging infrastructure.
“Norfund is an established, long-term, institutional investor with a strong global clean energy portfolio, committed to driving impact,” said Vivek Subramanian, co-founder and executive director, Fourth Partner Energy.
“Across Asia, Africa and Central America, Norfund has invested in and with companies like Globeleq, Scatec, Berkeley Energy Commercial and Industrial Solutions, d.Light and Yoma Micropower – which prioritize profitability while simultaneously addressing climate change, poverty alleviation and employment generation,” said Anders Blom, vice president, Norfund.
“As the global community continues to tackle climate change, Fourth Partner Energy is leading India’s transition to renewable energy. The Rise Fund’s mission is to back businesses that help solve global issues like climate change while delivering attractive returns on investment,” said Ankur Thadani, business unit partner, The Rise Fund.
Investec Capital Services India, Shardul Amarchand Mangaldas & Co and Dua & Associates were advisors to Fourth Partner Energy and TPG for this transaction while Avendus Capital and Cyril Amarchand Mangaldas advised Norfund for the same.
In April 2021, Fourth Partner Energy secured a $33 million line of mezzanine funding from the CDC Group. Prior to that, it received a $15 million round of funding from Swiss climate action fund ResponsAbility and a $16 million investment from a consortium of European lenders led by Symbiotics.
Fourth Partner Energy manages a portfolio of 550 MW across its distributed and open access solar portfolios.
The company has commenced operations across Sri Lanka, Bangladesh and Vietnam. In Indonesia, 4PEL has tied up with integrated energy major Indika Energy to offer solar solutions to corporates there.