Deutsche Investitions- und Entwicklungsgesellschaft (DEG), a development finance institution and a KfW Group subsidiary, has pledged $10 million in funding to Indian solar energy company Avaada Energy Private Limited (AEPL).

According to the DEG press note, Avaada aims to reach 4.3 GW of capacity by 2022 with a diversified portfolio. DEG’s funding will be applied for the construction, operation, and maintenance of the targeted projects.

According to Mercom’s India Solar Project Tracker, Avaada Energy’s solar portfolio includes 635 MW of commissioned projects and 1.96 GW under various stages of development.

In September 2020, the Asian Development Bank (ADB) announced that it had signed an agreement to invest $15 million in Avaada to help expand its solar generation capacity in the country. This investment would come from ADB’s Ordinary Capital Resources and Leading Asia’s Private Infrastructure Fund (LEAP), with both funds investing $7.5 million each. The bank added that this was its second investment in Avaada Energy after the first round of $50 million invested in April 2019.

Before this, Avaada Energy had announced that it secured financing of around  ₹10 billion ($143.8 million) in the form of equity infusion from the ADB,  German development bank – DEG, Dutch development finance company- FMO, and promoters’ equity.

In November 2019, PROPARCO, a French development financial institution, also announced a $15 million equity investment in Avaada Energy. PROPARCO provides funding and support to both businesses and financial institutions across Africa, Asia, Latin America, and the Middle-East.

Previously, it was also reported that ADB planned to invest $50 million in Avaada Energy. The project developer was to use the capital to expand its solar energy generation capacity in India.

Mercom Capital Group’s latest 9M and Q3 2020 Solar Funding and M&A Report showed that total corporate funding – including venture capital funding, public market, and debt financing jumped 43% during the third quarter of 2020 to $3.2 billion (₹234.2 billion) from $2.3 billion (₹169.3 billion) in the previous quarter.