MYSUN, a Delhi-based technology platform for rooftop solar energy solutions, has raised ₹320 million (~$4.2 million) from its existing investors in a structured equity deal. This is a part of its pre-series A round.
As the company plans to venture into new markets and business models to step up its technology, it is also looking to raise another ₹2.5 billion (~$35 million) over the next few quarters.
Gagan Vermani, founder and CEO of MYSUN, said, “We are committed to the vision to make solar energy access easy and reliable for the consumers. Our focus continues to use technology as the backbone of our business and to unlock the huge underserved consumer segments like small and medium enterprises (SMEs) and homes. We are happy to continue to have the confidence of our investors and the patronage of our ever-rising pool of customers.”
According to the company statement, MYSUN is planning to use the capital to further improve its technology infrastructure, scale up the service offerings, and expand to new locations, both in India and across the world, including parts of the Middle East, Asia Pacific, and Africa.
“As the energy landscape, as well as the overall economic landscape, is changing rapidly due to the recent global events, we foresee higher and higher demand for independent solar energy systems across the B2B and B2C consumer segments around the globe over the next many years. With its innovative technology, business model, and a highly experienced team, MYSUN is well placed to leverage this demand into a sustainable growth business,” Vermani added.
According to the company, with this new investment, MYSUN will also foray deeper into its in-house SMEs financing solutions. The company aims to cater to the unique solar financing needs of SMEs as well as that of individuals, making solar ownership a hassle-free experience.
Asked how did the company manage to get this funding, Gagan Vermani, CEO of MYSUN, told Mercom: “We’ve been plain lucky. We have been working to raise funds for the past four-five months. However, our funding requirement is higher than the ₹320 million (~$4.2 million).”
The company’s pre-A series has a target of raising $10 million (₹751million), and the amount of $4.2 million (₹320 million) raised recently is a part of the target, he added.
Further, Vermani said, “After the pre-A series gets over, we’ll be starting the A series. The idea is first to raise small equity and deploy the funds in technology and innovations, which will help to attract larger capital in the future.”
Considering the present-day situation, he said that one needs to get into the technology and innovation side of the business as traditional business models are not going to work.
As per the newly released – India Solar Market Leaderboard 2020 – at the end of 2019, cumulative rooftop solar installations in India reached 4,365 MW, making up 10.9% of the country’s rooftop solar target of 40 GW by 2022. The top ten rooftop solar installers represented 43% of the market share in 2019.
According to Mercom’s Q1 2020 Solar Funding and M&A Report – Global VC (venture capital) funding for the solar sector in Q1 2020 reached $145 million in nine deals compared to $176 million raised in 13 deals in Q1 2019. The majority of VC funding raised in Q1 2020 went to solar downstream companies with $122 million in seven deals.
Last year, ZunRoof, an Indian solar rooftop startup, also raised another fresh round of series A funding of $1.2 million from Godrej properties. As previously reported by Mercom, ZunRoof had raised ₹16.6 million (~$0.25 million) in the second round of angel funding.
This article has been updated with a quote
Anjana is a news editor at Mercom India. Before joining Mercom, she held roles of senior editor, district correspondent, and sub-editor for The Times of India, Biospectrum and The Sunday Guardian. Before that, she worked at the Deccan Herald and the Asianlite as chief sub-editor and news editor. She has also contributed to The Quint, Hindustan Times, The New Indian Express, Reader’s Digest (UK edition), IndiaSe (Singapore-based magazine) and Asiaville. Anjana holds a Master’s degree in Geography from North Bengal University, and a diploma in mass communication and journalism from Guru Ghasidas University, Bhopal.