New Delhi, Aug. 10 -- An overseas development finance institution is set to invest up to $20 million (Rs 190.5 crore) in fresh capital in Pune-headquartered agritech and agri infrastructure-focussed startup Ecozen Solutions Pvt Ltd, VCCircle has learnt.
Ecozen, which has raised both debt and equity capital to fund its growth, is set to raise fresh debt from FMO, the Dutch entrepreneurial development bank. FMO has proposed providing the capital in two tranches.
The proposed financing comprises an initial committed tranche of $10 million in 2026 and an uncommitted tranche of $10 million in 2027, subject to agreed conditions. The rupee-denominated facilities will have a three-year tenure and will primarily be used to meet the working capital requirements of Ecozen's agriculture-focussed businesses.
FMO said it is providing subordinated financing to bridge a funding gap while also supporting the company through governance-strengthening initiatives and potential gender-focussed technical assistance. It has classified the investment as fully aligned with its climate and inequality-reduction objectives, citing Ecozen's work with smallholder farmers and renewable energy solutions.
Founded in 2010 by IIT Kharagpur alumni Devendra Gupta, Prateek Singhal and Vivek Pandey, Ecozen develops solar-powered solutions for the agriculture sector. Its flagship products include Ecotron, a smart IoT-enabled solar pump controller for irrigation, and Ecofrost, a solar-powered cold storage system designed to reduce post-harvest losses.
The company has also diversified into solar air conditioners, rooftop solar systems and rural motors.
The proposed financing comes as Ecozen was preparing to raise a Series D funding round late last year. As reported earlier by VCCircle, it was looking to raise $50-100 million through a mix of primary and secondary transactions, and had appointed Cipher-Plexus and Ekta Partners to advise on the fundraising.
Last year, Ecozen also raised Rs 110 crore in debt through non-convertible debentures from Spark Capital and responsAbility Investments AG to fund its working capital requirements. Both investors had previously extended debt to the company.
Last month, it was also reported to have raised Rs 125 crore in debt funding from Rajiv Poddar, Indel Money and InCred Finance, among others.
Other debt backers include Northern Arc Capital, InCred Credit Fund, US International Development Finance Corporation (DFC) and Oikocredit's India arm Maanaveeya Development & Finance.
On the equity side, Ecozen has raised around Rs 230 crore from investors including Nuveen Global Fund, Dare Ventures, Exim Bank, Caspian and the Hivos-Triodos Fund. In 2023, it raised about $25 million in its Series C round.
For the financial year ended March 2025, Ecozen reported a turnover of Rs 1,159 crore and profit after tax of Rs 95 crore.
The company serves small and marginal farmers through its portfolio of renewable energy products and has expanded its technology stack to include AI, IoT, advanced motor controls and thermal energy storage solutions.
Published by HT Digital Content Services with permission from VC Circle.