Robust Funding Despite a 9% Dip in 2023

In January 2024, Indian solar energy tech companies attracted a substantial $1 billion in funding, defying a 9% dip recorded in 2023, as revealed in a recent report.

Funding Trends: Late-Stage Rounds Dominate

The market intelligence platform reported a total funding of $1.55 billion for the solar energy sector in 2023, reflecting a 9% decrease from the $1.7 billion raised in 2022. Notably, late-stage funding constituted a major portion, with Sukhbir Agro Energy securing $1 billion in a private equity round in January 2024.

Shifts in Funding Dynamics: Late-Stage vs. Early-Stage

The report outlines a shift in funding dynamics, with late-stage funding experiencing a 23% decline to $1.3 billion in 2023 compared to the $1.7 billion raised in 2022. In contrast, early-stage funding witnessed a remarkable sixfold increase, reaching $252 million in 2023 from $39 million in 2022. Seed-stage funding also surged by 58%, totaling $11.5 million in 2023.

Regional Trends: Delhi Takes the Lead

Delhi emerges as the frontrunner among cities in terms of total investment, securing $3.1 billion to date. Gurugram and Mumbai follow closely, with $2.7 billion and $2.3 billion, respectively. Despite the significant funding, the report notes the absence of unicorns in the Indian solar energy sector.

Mergers, Acquisitions, and IPOs

The Indian solar energy sector has witnessed notable activity in mergers, acquisitions, and IPOs. To date, there have been 43 acquisitions, with 16 occurring in recent years. In 2024, a single acquisition has been recorded so far. Additionally, 49 companies have gone public, with three IPOs in 2023 and two in 2022.

The report underscores the resilience and continued growth of the Indian solar energy sector despite certain funding fluctuations, indicating sustained investor interest in this evolving industry.

Source：http://gujaratsamachar.com