Climate financing platform Two Point O Capital has raised $6.3 million in a seed funding round led by venture capital firm Omnivore, with participation from Multiply Ventures, RTP Global, GrowX, Spectrum Impact, and several high-profile angel investors.
The investment will support Two Point O Capital’s efforts to expand its technology-enabled platform that focuses on sourcing, underwriting, financing, and monitoring distributed clean energy projects. The platform serves sectors such as solar rooftop installations, energy efficiency equipment, and wastewater treatment systems.
By leveraging this new funding, the company aims to collaborate with both operational and financial partners to build and manage a portfolio of clean energy projects throughout their lifecycle.
Founded in 2024, Two Point O Capital targets small and medium enterprises (MSMEs) and rural businesses engaged in distributed clean energy projects, primarily within the commercial and industrial sectors. The company provides a range of financing options, including leasing, capex financing, and other innovative solutions to facilitate the energy transition in India. Key areas of focus include solar energy, energy efficiency, and wastewater treatment projects.
The founding team, comprising Archit Mehrotra, Karan Bhutani, and Manya Ranjan, with Shashidhar Reddy joining recently, brings together over 70 years of combined experience from top-tier companies such as KKR, McKinsey, Shell, BP, Honeywell, ReNew, Sterlite Power, and GIC.
Two Point O Capital’s business model is designed to address a significant shortfall in debt financing for distributed clean energy projects, a sector that often struggles to attract traditional investment. The platform seeks to unlock capital for clean energy assets in rural areas, thereby enabling businesses to adopt sustainable practices.
Abhilash Sethi, investment director at Omnivore, highlighted the importance of this venture, stating: “By unlocking capital for distributed energy assets in rural India, the startup empowers businesses nationwide to embrace sustainability. The founding team brings extensive experience from relevant sectors, and we are excited to partner with them.”
Similarly, Raveen Sastry of Multiply Ventures remarked: “We are excited to support this talented team as they work to solve one of India’s biggest challenges—bridging the $10 billion annual gap in financing for clean energy projects.”
The fresh capital will also enable Two Point O Capital to scale up its workforce, with plans to attract top talent across various functions as the company looks to further develop its platform and expand its reach.
Indian climate tech startups have seen substantial growth in recent years. According to Inc42 data, investment in the sector has reached $4 billion by November 2023, surpassing the $2.7 billion recorded by 2016. The interest in the climate tech space is diversifying, with new innovations in green hydrogen, sustainable agriculture, recycling, low-carbon cement, and water conservation, among other areas.
This surge in funding and innovation highlights the growing recognition of the critical role that climate technology plays in addressing environmental challenges, particularly in a country like India, which faces both high demand for energy and significant sustainability challenges.
As Two Point O Capital continues to grow, its focus on clean energy financing could play a pivotal role in accelerating the transition to sustainable energy solutions, especially for underserved rural and commercial sectors.