Pune-Based Agri-focused Deeptech Startup Ecozen Raises $30 Mn

Ecozen, a pioneering agriculture-focused deep-tech startup based in Pune, has secured $30 million in a new funding round that blends debt and equity. This significant financial boost is spearheaded by Nuveen Global Fund with participation from other returning equity investors. Newcomers InCred Credit Fund and the International Development Finance Corporation (IDFC) provided the debt support, marking a pivotal step in Ecozen’s journey of innovation and expansion.

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Historical Funding and Achievements

Ecozen, which previously raised $25 million in January of the preceding year led by Nuveen, has amassed around $70 million across debt and equity to date. This reflects strong confidence from investors in Ecozen’s robust growth trajectory and its groundbreaking solutions tailored to the agricultural sector.

Strategic Expansion Plans

With the fresh infusion of capital, Ecozen is set to broaden its suite of offerings and extend its geographical footprint to Africa and Southeast Asia. “Our goal is to leverage our innovative technology to make a significant impact in new markets while continuing to serve and expand our base here in India,” said a company spokesperson in a recent press release.

Innovative Products Driving Growth

Ecozen’s core mission revolves around developing climate-smart technologies. Their products, including Ecotron and Ecofrost, employ advanced motor controls, IoT, and energy storage systems, all powered by solar energy. These innovations have not only set Ecozen apart from the competition but have also fueled its rapid growth and expansion into new market segments.

Financial Performance and Outlook

Ecozen has shown remarkable financial performance, boasting a fivefold increase in size over the past two years with profits tripling in the same period. The company anticipates revenue to double in the current fiscal year. Such growth is underpinned by a significant increase in revenue, which surged by 139% to Rs 293.24 crore in FY23, up from Rs 122.57 crore in FY22, according to data from TheKredible.

Moreover, solar products and related services have constituted 90% of its collections for the fiscal year ending in March 2023. From posting a loss of Rs 37 lakh in FY22, the firm turned a profit of Rs 5.76 crore in FY23, showcasing not only recovery but also a promising upward trajectory in profitability.

Environmental Impact

Looking forward, Ecozen aims to replicate the success of its agricultural innovations in other sectors, intending to decarbonize industries such as milling, mobility, retail, and more. “Just as our pumping and cooling solutions have revolutionized agriculture, we plan to bring similar transformative benefits to other industries, contributing significantly to global sustainability efforts,” remarked the spokesperson.

Market Position and Competition

Despite the competitive landscape with players like Powerflex, Inficold, and Khetworks, Ecozen’s unique value proposition—centred on sustainable and efficient technology—positions it well in the market. As it enters new segments and markets, its innovative solutions are set to carve a niche in the expanding global market for eco-friendly technologies.

Ecozen’s journey reflects a broader trend of innovative startups emerging from India, harnessing technology to solve global challenges, and attracting significant investment as they scale up operations and impact. With its latest funding round, Ecozen is well-poised to continue its trajectory of growth and innovation, making substantial contributions to the sectors it serves while upholding its commitment to environmental sustainability.