GPSR Arya, the asset platform of GPS Renewables, has raised ₹500 million in mezzanine funding from Axis Asset Management Company through its Alternates platform.
As a part of the funding, the company plans to accelerate the development of compressed biogas (CBG) projects across India through its partnerships with public sector oil marketing companies including Indian Oil Corporation Limited and Bharat Petroleum Corporation Limited.
Speaking on the fundraise, Mainak Chakraborty, CEO and Co-Founder, GPS Renewables, said, “Recent developments in the global energy market have highlighted the need and importance of building domestic fuel alternatives. CBG offers a unique advantage for India, given the abundance of locally available feedstock that can support the development of large-scale biofuel infrastructure. This deal reflects growing institutional recognition of biomethane and CBG both as a clean energy opportunity and as a strategic energy security asset.”
Commenting on the fundraise, Parag Parikh, CEO, GPS Renewables Arya, said, “Through the Arya platform, our priority is to accelerate the development of biogas projects across the country by expanding capacity across multiple feedstocks and geographies. This funding will play a key role in building a nationwide network of CBG plants that can contribute towards reducing fossil fuel dependence and lowering greenhouse gas emissions.”
“The transaction, one of the first in the private credit space in the CBG sector, demonstrates Axis AMC’s commitment to deliver tailored solutions for emerging cleantech sectors. We see this investment as a step towards supporting the development of large-scale CBG projects that can accelerate India’s efforts towards clean energy transition,” Nachiket Naik, Head of Structured Credit at Axis AMC added.
GPS Renewables said it has built capabilities across technology, engineering, EPC and project development, and is currently developing biogas projects with a capital outlay approaching $1 billion.
The company’s current pipeline includes more than 30 operational or near complete projects, with visibility on over 200 CBG projects under development in partnership with oil marketing companies. Its portfolio includes projects such as an MSW based CBG plant in Indore and a facility in Barabanki, along with an upcoming large scale project in Kakinada.
The transaction was advised by Elements Financial Solutions Private Limited, which supported debt structuring, lender engagement and documentation.