India : HUSK POWER SYSTEMS gets $5 million in Series A financing round.
Husk Power Systems Inc., a renewable energy startup engaged in rural electrification and power generation, has secured $5 million (Rs 27 crore) in a Series A financing round.
Acumen Fund and Bamboo Finance led this Series A financing round. The existing investors Bamboo Finance, Acumen Fund and LGT Venture Philanthropy also took part in this round. The other existing investors Draper Fisher Jurvetson and Cisco will continue to invest in the company by converting their existing investment to equity capital.
Jean-Philippe de Schrevel, CEO of Bamboo Finance, said, HPS continues to demonstrate the commercial viability of providing affordable electricity to low income communities. We believe their model can be replicated in many countries. We are excited about their progress and investing in their ongoing growth.
Husk Power Systems has association with Patna based Husk Power Systems Pvt. Ltd., which was established in 2007. The firm designs and runs miniature power plants which convert rice husks into electricity using a gasification process and offers power with an off-grid rural electricity network. It has deployed more than 80 plants in Bihar, offering electricity to more than 200,000 people across 300 villages. In 2008, HPS established a strategic partnership with Shell Foundation. It had also collaborated with Overseas Private Investment Corp., to get a low rate term-loan in June 2012.
Using this equity capital, Husk Power is planning to increase its operations in rural India and East Africa. It is also planning to raise up to $4 million of term loan to support its expansion.
Manoj Sinha, co-founder of Husk Power Systems, said, While Series A financing positions HPS to exponentially scale its modular energy solution, it is paramount to understand that such scaling would be practically impossible without the right mix of capital that consists of equity and debt capital and equally importantly grant capital necessary to address systemic issues like training rural employees, and discovering a low-cost smart metering and grid solution.
"Their (HPS) recent fundraise will enable significant scale in India and Africa that will further validate their approach and create impact," said Simon Desjardins, Head of Shell Foundation's Access to Energy Program.
Wolfgang Hafenamayer, Managing Partner of LGT Venture Philanthropy, said, Through constant innovation in technology and operations, HPS has managed to crack a micro-grid based model of rural electrification that can be scaled globally. This new funding will enable the company to take a significant step towards expansion commensurate with the scale of the problem.
2012 Al Bawaba (Albawaba.com)
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