Norfund-backed Candi Solar is raising $50 million (Rs. 472 crore) in fresh capital from Pentagreen Capital, the sustainable infrastructure debt platform set up by HSBC and Temasek, to fund about 400 MWp of solar and battery storage projects in India, the companies said on Thursday.
VCCircle reported in January that Candi was in talks to raise up to $50 million from a new development finance institution in a Series D equity round, with some existing investors likely to participate.
Pentagreen is deploying the money through its Green Investments Partnership, a strategy under Singapore's Financing Asia's Transition Partnership (FAST-P) initiative.
The facility will fund rooftop, ground-mounted and open-access solar installations paired with battery energy storage systems across key business hubs in India.
The projects are expected to generate 560 gigawatt hours of renewable energy a year for 227 commercial and industrial customers, 78% of them small and medium-sized enterprises (SMEs).
SMEs account for 31% of India's gross domestic product and 35% of its manufacturing output but remain underserved in renewable energy access, the release said, citing government data.
Zurich-based Candi said the funding will support its plan to take capacity beyond 1 GW over the next 24 months. Co-founder and director Fabio Eucalipto called the Pentagreen partnership "the first building block in our next phase of growth".
He said additional shareholder commitments and an equity round planned for early next year would add to the capital. The companies did not disclose the size of the equity round.
Under Candi's turnkey model, customers pay only for the clean energy generated. The company handles engineering, construction and long-term operations, so clients avoid upfront capital spending. The deal comes as India pushes towards a target of 500 GW of non fossil fuel capacity by 2030, up from about 300 GW in August 2026. It is also promoting battery storage to decarbonise its power sector.
Distributed solar-power solutions
Founded in 2018, Candi develops and finances distributed solar and storage projects for commercial and industrial customers in India and South Africa. It has contracted over 340 MW across more than 185 installations and raised over $200 million in cumulative capital. Its clients include Pricol, Toyota, International Flavors & Fragrances, Pick n Pay and Suryalakshmi Cotton Mills.
Its equity backers include Norfund, STOA Infra & Energy and Kyuden International, and its lenders include IFC and the Energy Entrepreneurs Growth Fund (EEGF).
In November 2025, Candi raised $58.5 million in debt in a round led by IFC. In July 2025 it raised $24 million from investors including Norfund, STOA and EEGF. In June 2024 it secured $38 million in equity from Norfund, STOA and Kyuden to fund 200 MW of projects in India and South Africa.