To encourage uptake of renewable energy, the Indian government passed a $9 billion subsidy program to support the adoption of small-scale solar systems. An additional $10 billion in financing is needed annually to help households and businesses make the switch.
India’s financial institutions, from young startups to major banks, are clamoring to address the need. Gurgaon-based Two Point O Capital, which provides green loans to small businesses and rural enterprises for solar rooftops, energy efficiency equipment and wastewater treatment. It has raised a $6.3 million seed equity round.
Two Point O, launched earlier this year, has a “special focus on the underserved sectors such as rural and agriculture,” noted Abhilash Sethi of agriculture-focused impact investor Omnivore, which led the round. “By unlocking capital for distributed energy assets in rural India, the startup empowers businesses nationwide to embrace sustainability.”
Multiply Ventures, RTP Global, GrowX and Spectrum Impact also participated in the round.
With the investment, Two Point O aims to build partnerships with other financial institutions to expand its reach.
