Climate-tech startup Ecozen Solutions is planning to raise Rs 125 crore through a new debt funding round as it looks to support its business expansion and working capital needs. The Pune-based company has been growing rapidly with its solar-powered solutions for agriculture and clean energy products.
Founded in 2010 by IIT Kharagpur graduates Devendra Gupta, Prateek Singhal, and Vivek Pandey, Ecozen develops technology that uses Artificial Intelligence (AI), the Internet of Things (IoT), thermal energy storage, and smart motor controls. The company’s products are designed to help farmers reduce energy costs while promoting clean and sustainable farming.
The proposed fundraising comes after Ecozen raised several rounds of debt and equity funding over the last few years, showing strong investor confidence in the company’s future.
Ecozen Raises More Funds After Multiple Successful Rounds
Ecozen is planning to raise Rs 125 crore by issuing 1,250 Non-Convertible Debentures (NCDs). The proposed funding round includes investments from several financial institutions and investors. Rajiv Poddar is expected to invest Rs 31 crore, while Indel Money will invest Rs 21 crore. Kredere Wealth Partner plans to invest Rs 16 crore, Sovereign Pharma Rs 15 crore, and both InCred Finance and Manba Finance Rs 10 crore each.
This is the company’s third major debt fundraising in less than a year. In November 2025, Ecozen raised Rs 111.6 crore by issuing NCDs to UTI International Wealth Creator and Spark Alternative Investment Fund. In January 2026, it secured another Rs 95 crore from Momentum Capedge Limited through Series E NCDs carrying an annual interest rate of 11.5%. That deal also included an option to raise another Rs 25 crore if required.
Apart from debt funding, Ecozen has also attracted major equity investments. In January 2023, the company raised $25 million through a mix of debt and equity from investors including Nuveen, Dare Ventures, India EXIM Bank, Caspain and Hivos-Triodos Funds, along with loans from HDFC Bank, Axis Bank, Northern Arc and Oxyzo. In 2024, Ecozen secured another $30 million in debt and equity funding. During the same year, Dare Ventures invested Rs 24 crore to increase its stake in the company.
Strong Revenue Growth Driven by Solar Products
Ecozen has reported impressive financial growth over the last two financial years. The company recorded revenue of Rs 458 crore and a profit of Rs 20 crore in FY24. In FY25, revenue increased sharply to Rs 1,150 crore, while profit rose to nearly Rs 95 crore.
Most of the company’s revenue came from the sale of solar products, which contributed around 77% of total collections. The remaining income came from solar pump installations and related services.
Ecozen follows an asset-light business model by outsourcing manufacturing while focusing on product development and technology.
Its flagship product, Ecotron, is one of India’s best-selling solar pump controllers and holds around 30% market share. The company has manufactured more than 300,000 units so far, including nearly 100,000 units between March and December 2024.
Another important product is Ecofrost, a portable solar-powered cold storage system that uses IoT technology. It can keep fruits and vegetables fresh for up to 30 hours without using batteries. Ecozen has installed more than 1,200 Ecofrost units, helping farmers reduce crop losses and earn better prices for their produce.
The company also offers solar air conditioners, solar dryers, electric vehicle controllers and smart EV motors. According to Ecozen, its products have benefited more than 180,000 farmers, generated around one billion units of clean energy, reduced greenhouse gas emissions by nearly two million tonnes and prevented over 50,000 metric tonnes of food waste.
Government Business and Working Capital Remain Key Challenges
Even with its fast growth, Ecozen continues to face some business challenges.
A large part of the company’s revenue comes from government-supported solar pump projects. This means its business depends heavily on government tenders, with a major share of these projects coming from Maharashtra.
The company also has a long payment cycle because many payments are received from government agencies. This affects cash flow and increases working capital requirements. At the same time, rising raw material prices and higher borrowing costs continue to put pressure on the business.
Despite these challenges, Ecozen has maintained strong growth and profitability. By the end of FY25, the company had current assets worth Rs 831 crore, including Rs 228 crore in cash and bank balances.
Institutional investors now own most of the company, while the three founders continue to hold a significant stake. With India’s focus on renewable energy and sustainable farming increasing, Ecozen is expected to continue expanding its business and developing new clean energy solutions in the coming years.