Ecozen, a climate tech startup, has recently announced the successful completion of a $23 million debt round, bringing them a step closer to their goal of sustainable innovation. This Pune-based firm is already putting its mark on the climate-tech industry with its solutions and growth potential.
Ecozen which specializes in climate-smart solutions was able to accumulate more than $ 23 million in debt funding courtesy of responsAbility Investments AG, Northern Arc Capital Limited, and Maanaveeya Development & Finance Private Limited, Ecozen aims to utilize the funds in expanding its operational capabilities while building its presence in the sustainable technology sector.
Due to the growing need for effective products that tackle environmental issues, the constructs have been able to build a strong reputation consisting of IoT-based devices, motor controls, and energy storage systems.
Ecozen offers the features of Ecofrost and Ecotron, which stand out from the rest of the products offered.
Ecotron: equipped with an efficient solar pump operator, the device has been able to help farmers reduce the need for electricity while optimizing irrigation techniques.
Ecofrost: this solar-powered cold storage device was designed to reduce post-harvest damage and loss while ensuring farmers can maximize their earnings.
These products leverage solar technology and IoT integration to provide sustainable and efficient solutions. Ecozen’s product line also includes Eco-Freeze, Ecozen atta chakki, Ecotron Omni, and e-bike controllers, catering to diverse industry needs.
Ecozen has demonstrated remarkable growth over the past three years, with a compound annual growth rate (CAGR) exceeding 83% in revenue. The startup has manufactured over 300,000 Ecotron solar pump controllers, with 100,000 units produced between March and December 2024 alone.
According to TheKredible, Ecozen’s revenue surged by an impressive 139%, reaching ₹293.24 crore in FY23 compared to ₹122.57 crore in FY22. Notably, the company turned profitable in FY23, recording ₹5.76 crore in profits compared to a ₹37 lakh loss in FY22. Given the company’s rapid scaling, the annual report for FY24 is eagerly awaited.
Ecozen’s competitive edge in climate tech
Ecozen competes with prominent players like Powerflex, Inficold, and Khetworks. However, its innovative approach, diverse product portfolio, and ability to address unique market challenges set it apart. The company’s products, designed to cater to agricultural and industrial sectors, underscore its versatility and commitment to sustainability.
Past investments and future goals
The latest investment comes after Ecozen successfully raised $30 million in April 2023 from Nuveen Global Fund and other investors using a combination of debt and stock. The business raised $25 million in equity in January 2023, with Nuveen leading the charge.
The funds raised are being utilised to scale operations and innovate further in sustainable technologies. Ecozen aims to strengthen its leadership in the climate-tech ecosystem by enhancing its product offerings and market reach.
Transforming agriculture and beyond
Ecozen’s impact is evident in agriculture, where its solutions have empowered farmers with energy-efficient and cost-effective technologies. Products like Ecotron have transformed irrigation practices, while Ecofrost has revolutionised the cold storage landscape. These innovations contribute not only to improved productivity but also to reduced carbon footprints.
Ecozen’s trajectory reflects its commitment to driving sustainable change through technology. With robust financial growth, innovative products, and a clear vision, the company is poised to disrupt the climate-tech sector further.
