Solar energy funding dips 9% in 2023; 2024 'kicks off' with US$1 billion investment

By Lakshmitha Raj*
Solar energy tech companies have already secured slightly over US$1 billion in funding in 2024 (till Feb 7, 2024) after total funding into Solar Energy companies in India fell 9% to US$1.55B in 2023 from US$1.7B in 2022. A total of 39 $100M+ rounds have been closed till date, with Delhi leading the city-wise funding, followed by Gurugram and Mumbai.
Tracxn, a leading market intelligence platform has released its Geo Solar Energy Report. The report, based on their extensive database, provides a round-up of funding and other major developments in India’s solar energy space in 2023.
This sector secured funding worth US$1.55 billion in 2023, 9% lower than the US$1.7 billion raised in 2022. However, within the first month of 2024, this space has witnessed US$1 billion in funding, with Sukhbir Agro Energy raising US$1 billion in its private equity round in January 2024.
The majority of the funding in this space comes from late-stage rounds. However, a decline in late-stage investments led to a subsequent drop in overall funding in 2023. Companies in this space attracted late-stage funding worth US$1.3 billion in 2023, a 23% decrease from the US$1.7 billion raised in 2022.
A sharp surge was observed in early-stage funding, which rose six-fold to US$252 million in 2023 from US$39 million in 2022. Seed-stage funding in this space has raised a total of US$11.5 million in 2023, a growth of 58% compared to the US$7.26 million raised in 2022.
The solar energy sector in India has witnessed a total of 39 US$100 million+ rounds to date, out of which 12 have taken place in the last two years. No unicorns have emerged from this sector so far.
Among the cities, Delhi takes the lead in terms of total funding to date, followed by Gurgaon and Mumbai. Solar energy companies based in Delhi have raised US$3.1 billion to date, followed by those based in Gurugram (US$2.7 billion) and Mumbai (US$2.3 billion).
There has been notable activity in terms of exits within this sector. The Indian solar energy sector has seen 43 acquisitions to date, of which 16 acquisitions were witnessed in the last few years, and 2024 has seen only one acquisition so far. Further, 49 companies have gone public to date, out of which three IPOs took place in 2023 and two in 2022.

Among the cities, Delhi takes the lead in terms of total funding, followed by Gurgaon and Mumbai

IFC, Villgro, and DFC are the most active investors in the Indian Solar Energy space to date. CIIE, Social Alpha, and Villgro are the top seed-stage investors in this space, while Acumen, CIIE, and FMO are the top early-stage investors. Axis Bank, British International, and KKR are the top late-stage investors in this space.

Meanwhile, the government of India has started to focus on locally developing solar products by providing incentives worth more than US$3 billion in the last three years. States such as Gujarat, Rajasthan, Karnataka, and Tamil Nadu are already generating more than 9 MW of solar energy.
The Indian government has set a target of net zero emissions by 2070. It also plans to diversify 50% of its electricity requirement to renewable energy by 2030. The government is giving a push to the deployment of renewable sources of energy, especially solar, through policies and incentives.
The government also encourages 100% Foreign Direct Investment (FDI) through the automatic route to promote solar energy within the country. These initiatives are expected to bolster solar energy companies and accelerate sectoral growth.
---
*Manager PR and Corporate Communications, Tracxn Technologies Ltd., Bangalore

Comments

Loktantra Bachao Abhiyan raises concerns over Jharkhand Adivasis' plight in Assam, BJP policies

By Our Representative The Loktantra Bachao Abhiyan (Save Democracy Campaign) has issued a pressing call to protect Adivasi rights in Jharkhand, highlighting serious concerns over the treatment of Jharkhandi Adivasis in Assam. During a press conference in Ranchi on November 9, representatives from Assam, Chhattisgarh, and Madhya Pradesh criticized the current approach of BJP-led governments in these states, arguing it has exacerbated Adivasi struggles for rights, land, and cultural preservation.

Promoting love or instilling hate and fear: Why is RSS seeking a meeting with Rahul Gandhi?

By Ram Puniyani* India's anti-colonial struggle was marked by a diverse range of social movements, one of the most significant being Hindu-Muslim unity and the emergence of a unified Indian identity among people of all religions. The nationalist, anti-colonial movement championed this unity, best embodied by Mahatma Gandhi, who ultimately gave his life for this cause. Gandhi once wrote, “The union that we want is not a patched-up thing but a union of hearts... Swaraj (self-rule) for India must be an impossible dream without an indissoluble union between the Hindus and Muslims of India. It must not be a mere truce... It must be a partnership between equals, each respecting the religion of the other.”

Right-arm fast bowler who helped West Indies shape arguably greatest Test team in cricket history

By Harsh Thakor* Malcolm Marshall redefined what it meant to be a right-arm fast bowler, challenging the traditional laws of biomechanics with his unique skill. As we remember his 25th death anniversary on November 4th, we reflect on the legacy he left behind after his untimely death from colon cancer. For a significant part of his career, Marshall was considered one of the fastest and most formidable bowlers in the world, helping to shape the West Indies into arguably the greatest Test team in cricket history.

Andhra team joins Gandhians to protest against 'bulldozer action' in Varanasi

By Rosamma Thomas* November 1 marked the 52nd day of the 100-day relay fast at the satyagraha site of Rajghat in Varanasi, seeking the restoration of the 12 acres of land to the Sarva Seva Sangh, the Gandhian organization that was evicted from the banks of the river. Twelve buildings were demolished as the site was abruptly taken over by the government after “bulldozer” action in August 2023, even as the matter was pending in court.

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

A Hindu alternative to Valentine's Day? 'Shiv-Parvati was first love marriage in Universe'

By Rajiv Shah The other day, I was searching on Google a quote on Maha Shivratri which I wanted to send to someone, a confirmed Shiv Bhakt, quite close to me -- with an underlying message to act positively instead of being negative. On top of the search, I chanced upon an article in, imagine!, a Nashik Corporation site which offered me something very unusual.

Will Left victory in Sri Lanka deliver economic sovereignty plan, go beyond 'tired' IMF agenda?

By Atul Chandra, Vijay Prashad* On September 22, 2024, the Sri Lankan election authority announced that Anura Kumara Dissanayake of the Janatha Vimukthi Peramuna (JVP)-led National People’s Power (NPP) alliance won the presidential election. Dissanayake, who has been the leader of the left-wing JVP since 2014, defeated 37 other candidates, including the incumbent president Ranil Wickremesinghe of the United National Party (UNP) and his closest challenger Sajith Premadasa of the Samagi Jana Balawegaya.

Will Bangladesh go Egypt way, where military ruler is in power for a decade?

By Vijay Prashad* The day after former Bangladeshi Prime Minister Sheikh Hasina left Dhaka, I was on the phone with a friend who had spent some time on the streets that day. He told me about the atmosphere in Dhaka, how people with little previous political experience had joined in the large protests alongside the students—who seemed to be leading the agitation. I asked him about the political infrastructure of the students and about their political orientation. He said that the protests seemed well-organized and that the students had escalated their demands from an end to certain quotas for government jobs to an end to the government of Sheikh Hasina. Even hours before she left the country, it did not seem that this would be the outcome.

A Marxist intellectual who dwelt into complex areas of the Indian socio-political landscape

By Harsh Thakor* Professor Manoranjan Mohanty has been a dedicated advocate for human rights over five decades. His work as a scholar and activist has supported revolutionary democratic movements, navigating complex areas of the Indian socio-political landscape. His balanced, non-partisan approach to human rights and social justice has made his books essential resources for advocates of democracy.

Tributes paid to pioneer of Naxalism in Punjab, who 'dodged' police for 60 yrs

By Harsh Thakor* Jagjit Singh Sohal, known as Comrade Sharma, a pioneer of Naxalism in Punjab, passed away on October 20 at the age of 96. Committed to the Naxalite cause and a prominent Maoist leader, Sohal, who succeeded Charu Majumdar, played hide and seek with the police for almost six decades. He was cremated in Patiala.

Search This Blog