Hyderabad-based Solar Energy Startup Fourth Partner Energy has raised $125 million in equity funding from Norfund – the Norwegian Investment Fund and existing shareholder The Rise Fund – TPG’s global impact investing platform.
Following its $70 million infusion into Fourth Partner Energy in 2018, The Rise Fund has extended its backing by $25 million in the current funding round. The round also marks Norfund’s maiden investment into India’s leading solar energy company, as it has invested $100 million.
The company will utilize the funds to increase its presence in the Indian Sub-continent and further expand into the SEA(Southeast Asia) region, targetting a solar capacity of 3 GW by 2025. It is also eyeing expansion of capabilities across energy storage, EV charging infrastructure.
In April 2021, Fourth Partner Energy secured a $33 million funding from the CDC Group, prior to which in 2020, the company announced a $15 million round of funding from Swiss climate action fund responsibility and a $16 million investment from a consortium of European lenders, led by Symbiotics.
To date, Fourth Partner Energy manages a portfolio of 550 MW across its distributed and open access solar portfolios. The company has commenced operations across Sri Lanka, Bangladesh and Vietnam. In Indonesia, 4PEL has tied up with integrated energy major Indika Energy to offer solar solutions to corporates there.
Speaking on the fundraise, Vivek Subramanian, Co-founder of Fourth Partner Energy, said, “Norfund is an established, long term, institutional investor with a strong global clean energy portfolio, committed to driving impact. We are keen on leveraging this round of funding and their expertise to further cement our leadership position.”
Anders Blom, Vice President at Norfund, said, “Across Asia, Africa and Central America, Norfund has invested in and with companies like Globeleq, Scatec, Berkeley Energy Commercial and Industrial Solutions, d.Light and Yoma Micropower – which prioritise profitability while simultaneously addressing climate change, poverty alleviation and employment generation. Fourth Partner Energy is enabling decarbonisation of the C&I sector in one of the most pivotal global markets.”
“Since our initial investment, Fourth Partner has built a world-class team that consistently delivers strong fundamentals while focusing on high quality customers and carbon aversion. We are excited to be investing additional capital into this platform and continuing to build an industry leading distributed solar energy business in India,” said Ankur Thadani, Business Unit Partner at The Rise Fund.