GPS Renewables raises USD 50 Million in debt financing
Bengaluru : GPS Renewables, India’s premier Full Stack Technology & Engineering company dedicated to clean fuels, has raised USD 50 Million (Rs 411.50 Crores) in debt financing from leading private, public sector banks, and prominent NBFCs. Participating institutions in the current financing round include Punjab National Bank, HDFC, Yes Bank, HSBC Bank, Kotak Mahindra Bank, ICICI Bank, Citibank, Vivriti Capital, Northern Arc, Spark Capital, Tata Capital and SIDBI.
Founded by Mainak Chakraborty and Sreekrishna Sankar, alumni of IIM-B, GPS Renewables has previously raised USD 20 Million in equity funding from Neev Fund II by SBICap Ventures, Netherlands based Hivos-Triodos Fund and Hyderabad-based Caspian Impact Investments.
GPS Renewables provides end-to-end solutions for the development, production and distribution of biofuels. The company has been at the forefront of biofuel technology and project development to accelerate the substitution of fossil fuels with biofuels, spanning CBG (Compressed Biogas) / RNG (Renewable Natural Gas), 2G ethanol and green hydrogen. GPS Renewables has set up over 100 biogas plants, including Asia’s largest RNG plant based on MSW (Municipal Solid Waste) in Indore which was inaugurated by the Honourable Prime Minister of India, Shri Narendra Modi. Through their extensive focus on building quality climate infrastructure, GPS Renewables has established itself as one of India’s leading biofuels firms with strong focus on R&D. The company currently has an order book of USD 240 Million (Rs 2,000 Cr) and MoUs worth USD 540 Million (Rs 4,500 Cr) for the execution of multiple CBG plants across the country.
With the current order book, GPS Renewables has crossed a turnover of USD 60 Million (Rs 500 Cr) in FY 2023-24, whilst registering a 225% growth over FY 2022-23. During the same period, the company increased its full-time employee strength from 72 to 500+. The company continues to stay net profitable despite a steep growth of > 2500% in turnover since FY21. The company also completed its first credit rating in FY 2023-24 with a long term rating of BBB with positive outlook and short-term A3 rating. With the current round of financing, the company enters FY25 on a positive note with sufficient headroom for further expansion.
Commenting on the fundraise, Tilak Minocha, Chief Finance Controller, GPS Renewables, said, “At GPS, our aim is to lead the way in India’s clean energy shift. To achieve this goal, we must enhance biofuel production capacity and streamline adoption processes. Through our extensive projects nationwide, GPS Renewables has effectively addressed these challenges. To further accelerate our efforts, we not only need financial backing but also strategic industry collaborations. The current round of funding will allow us to accelerate our expansion efforts and promote India’s transition to sustainable green energy”.
In recent developments, GPS Renewables acquired Germany-based Proweps Envirotech GmbH, a leading design and engineering company specializing in technologies for utilizing municipal and industrial organic waste and agri-residue for biogas production. Looking ahead, through its climate infrastructure platform – GPSR Arya, the company plans to develop its own Compressed Biogas (CBG) projects via a Joint Venture with Indian Oil Corporation (IOCL).