Two Point O Raises $10M to Finance Small Clean Energy Projects
Presented with assistance from sponsors
Much of India’s clean energy capital flows into utility-scale projects, while smaller installations in factories and commercial buildings struggle to find financing. Two Point O Capital, a startup that targets that gap, has raised $10 million (nearly ₹95 crore) in a Series A round led by Transition Venture Capital.
Customers and growth claims
The company says it has onboarded around 25 to 30 large customers, among them Premier Energies, Godrej, JK Tyre, Morepen Pharma, Wipro and Phoenix Mills. Its approach is to win big-ticket clients and sell them further solutions, which, according to CEO Karan Bhutani, keeps customer acquisition costs low.
Assets under management have grown 1.5 times sequentially in each of the last three quarters, the startup says. Bhutani estimates the current customer base could generate ₹400 to 500 crore in transactions over the next two to three years.
Inc42 cites an IMARC Group estimate that India's clean tech market could grow to a $95 billion opportunity by 2034. Two Point O targets only a small slice of that market, at the point where lending technology and business-to-business clean energy services overlap.
What the money is for
Existing investor Omnivore took part, along with angel investors Chiranjeev Singh Saluja and Sudhir M Reddy. The round comes two years after the company raised more than $6 million in 2024 through a mix of equity and debt.
A large part of the new money will finance clean energy assets for commercial and industrial customers. The capital will also go toward strengthening the technology stack and hiring. Next, the startup wants to enter the small and mid-sized enterprise segment and expand across India. It aims to reach assets under management of $75 million to $100 million over the next couple of years, and to move into data centres, automotive, pharmaceuticals, manufacturing and healthcare.
How the company works
Bhutani told Inc42 that capital had been pumped into utility-scale and grid-scale projects, but not enough had reached distributed energy projects for industries and buildings. The startup was founded in 2024 by Bhutani, Archit Mehrotra, Manya Ranjan and Shashidhar Reddy. It offers financing, turnkey solutions and equipment leasing for rooftop solar, battery energy storage, energy efficiency upgrades to heating, cooling and air compressors, and wastewater treatment. The company says it focuses on smaller projects than traditional banks and non-bank lenders.
Loans go through a wholly owned non-bank finance subsidiary, while a separate operating entity covers leasing and service-based deals.
The company does not install or maintain equipment itself. It relies on equipment makers and engineering, procurement and construction partners, and oversees them through technology and contracts. Bhutani calls this a "light-touch" model that lets the company scale.
Bhutani also says the startup has built its own underwriting engine that evaluates each project's technical side, expected performance and credit standing. A client can get a techno-commercial proposal within 24 to 48 hours. Every deployed asset is IoT-enabled, he said, and the real-time data supports maintenance, performance tuning and verification.
Our View
Everything on growth, customer numbers and underwriting speed here comes from the company or its CEO, and the source does not say whether any of it has been independently checked. The model also depends on partners who do the physical work. Repayment and asset performance data would show whether the approach holds as it moves into smaller clients, and the source includes none.
Source: Inc42 Media