Freyr Energy Raises INR 58 Crores in Series B Funding

Freyr Energy, a tech-enabled rooftop solar solutions provider has raised INR 58 crore in a Series B funding round led by EDFI ElectriFI, an EU-funded impact investment facility managed by EDFI Management Company. EDFI ElectriFI has also invested INR 24 crore in the round.

“We are excited about this fundraise and bringing on-board likeminded investors. This strategic investment reinforces Freyr Energy's commitment to empower Indian retail customers and will allow us to make investments in building our team, product development and marketing to continue scaling at a rapid pace,” Radhika Choudary and Saurabh Marda, Co-Founders, Freyr Energy stated in a joint statement.

Investors, who participated in the round included Schneider Electric Energy Asia Fund (SEEAA), Lotus Capital LLC, Maybright Ventures and VT Capital.

“The solar market for the retail sector in India is highly fragmented and disorganized. In this context, we do see an opportunity to team-up with Freyr Energy in bringing solar solutions combined with technology and consumer financing to allow retail customers to transition seamlessly to solar power and reduce their electricity bills. At EDFI MC, we are proud to have closed this equity transaction together with likeminded investors from different parts of the globe,” Rodrigo Madrazo, CEO, EDFI Management Company said.

However, the official release did not disclose as to for what the funds will be utilised for. Earlier, Freyr Energy had raised INR 27 crore in a Series A round in 2018 which was led by C4D Partners, a Netherlands-based Impact Investment Fund.

Abundant Potential

India has abundant potential for solar energy due to its tropical region that is why the concept of solar based electric vehicles can be optimistically taken forward for wider implementation. There have been many innovative developments in the sector of solar transport as well.

Solar Buses: Students at Lovely Professional University have developed India’s first driverless, solar-powered bus. The vehicle was showcased at the 106th edition of the Indian Science Congress (INC). The bus uses renewable energy that is delivered with an electric motor and solar power. With this set up, the bus can manage to reach a top speed of 30kmph and can transit up to 70 km per single full energy.

Solar Train: Indian Railroads on July 14, 2017 started first solar based fuelled Diesel Electrical Numerous Unit (DEMU) train from the Safdarjung rail line station in Delhi. The train runs from SaraiRohilla in Delhi to Farukh Nagar in Haryana. A total of 16 sunlight based boards, each creating 300 Wp, are fitted in six mentors.

Solar E-Rickshaw: “ElecRic”, an electric rickshaw model launched in Bangalore in 2016, runs on solar power, has zero tailpipe emissions and is available at a price of INR two lakh. The model has a range of 110 km with one full charge that takes about five hours for charging. The maintenance cost of the solar electric rickshaw is estimated to be INR 1 to INR 5 per km.

Solar Car: In 2013, the “e20” model of electric car has been launched by Mahindra group in India in order to meet the company’s “5cs” framework: Clean, convenient, connective, clever, and cost effective. The car can be charged via a common 15 ampere outlet, or using solar panels. Many other electric car models from various manufacturers have entered the market to boost sustainability benefits.

Market Size Of Solar Energy

The Indian market is witnessing a growing demand for increasing investments in renewable energy. According to TechNavio, the solar power market size in India is estimated to grow at a CAGR of 34.24 per cent between 2022 and 2027. The market size is forecast to increase by USD 273.82 billion.