Two Point O Bags $10 Mn To Bridge The Financing Gap In Clean Energy

India’s clean energy transition is attracting significant capital, but much of it is flowing into utility-scale projects. Smaller installations across factories, commercial buildings and industrial facilities continue to face a financing gap, even when the technology is commercially viable and can help businesses lower operating costs.

Two Point O Capital wants to channel capital into this underserved segment by bringing financing, technology and project execution under one platform.

To fuel its ambition, the startup has now raised $10 Mn (nearly ₹95 Cr) in its Series A round led by Transition Venture Capital (TVC). The round also saw participation from existing backer Omnivore and angel investors Chiranjeev Singh Saluja and Sudhir M Reddy.

The startup plans to utilise a major chunk of the fresh proceeds towards financing the deployment of clean energy assets for its commercial and industrial (C&I) customers. The capital will also be utilised to strengthen the startup’s tech stack and ramp up hiring.

The latest round comes two years after Two Point O raised over $6 Mn, via a mix of equity and debt, in 2024 .

“There was a lot of capital that was getting pumped into utility-scale, grid-scale projects. But there wasn’t enough capital inflows into the distributed or decentralised energy projects, to put it simply, for industries and buildings,” cofounder and CEO Karan Bhutani told Inc42.

Founded in 2024 by Bhutani, Archit Mehrotra, Manya Ranjan and Shashidhar Reddy, Two Point O provides financing, turnkey solutions and equipment leasing across areas such as rooftop solar, battery energy storage systems (BESS) and wastewater treatment. Unlike traditional banks and NBFCs, the startup claims to be focused on smaller-scale projects.

Building A Full-Stack Clean Energy Platform

Two Point O positions itself as a full-stack clean energy enablement platform for commercial and industrial (C&I) customers. Its offerings span four asset classes:

• Rooftop Solar: Distributed solar installations for commercial and industrial facilities
• BESS: Solutions to optimise energy consumption and manage peak demand
• Energy Efficiency: Upgrades across heating, cooling and air compressors
• Wastewater treatment: Projects to improve water treatment and resource utilisation

The startup offers multiple financing structures. It operates a wholly-owned NBFC subsidiary, which handles loan disbursals, while a separate operating entity caters to lease and service-based requirements.

Bhutani also claims that the startup has built a proprietary underwriting engine that uses technology to assess a project’s technical specifications, performance and credit profiles. This allows Two Point O to dish out a techno-commercial proposal for a client within 24 to 48 hours, he added.

Two Point O also monitors assets after deployment. Bhutani said that all deployed assets are IoT-enabled, with real-time data used for preventive maintenance, performance optimisation and verification.

Notably, the startup does not directly undertake installation and maintenance. Instead, it relies on original equipment manufacturers as well as engineering, procurement and construction (EPC) partners for execution, and oversees them through technology and contracts. Bhutani said that this “light-touch” model gives the startup the ability to scale its operations.

Inside Two Point O’s Cross-Selling Model

India’s clean tech market, as per IMARC Group, could become a $95 Bn opportunity by 2034. Two Point O is eyeing a much smaller piece of this market as it operates at the intersection of lending tech and B2B clean energy enablement segments. 

To carve a niche in the space, Two Point O has so far focused on roping in big-ticket clients and cross-selling additional solutions to these customers. This approach, as per Bhutani, allows the startup to keep customer acquisition costs low and get more out of its users. 

So far, the startup claims to have already onboarded around 25-30 large customers, including Premier Energies, Godrej, JK Tyre, Morepen Pharma, Wipro and Phoenix Mills. Bhutani estimates that its existing customer base could generate ₹400-500 Cr in transactions over the next two to three years. The startup also noted that its assets under management (AUM) grew 1.5X sequentially in each of the last three quarters.

Not stopping there, the startup has much more in store going forward:

• Enter the SME segment and expand across India
• Build an AUM of $75 Mn to $100 Mn over the next couple of years
• Expand into new sectors like data centres, automotives, pharmaceuticals, manufacturing and healthcare

Inc42 Take: Can Two Point O Scale Its Multi-Asset Model?

Two Point O is addressing a financing gap in distributed clean energy by combining capital, technology and project execution. What works for the startup is its multi-asset model, which could help deepen relationships with existing customers and generate repeat business.

However, scaling across asset classes will require strong underwriting, consistent asset performance and effective oversight of operating partners. The planned SME expansion also brings additional challenges around technology risks, regulations and credit assessment.

The startup’s ability to turn its customer base and growing AUM into sustained revenue and profitability remains to be seen, particularly as it expands its portfolio and deployment commitments.

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