$150-million cleantech fund on the anvil

The growing investor interest in clean technology is set to deepen with the launch of a new fund. The Prithvi Sustainability Innovation and Technology Fund will invest in clean technology, renewable energy and sustainability sectors after it ties up commitments worth $150 million (Rs 697 crore) by January next year, according to Shankar Rele, partner and advisor with the fund and chief executive officer of investment advisory ICEStartups.com.

The fund would invest or co-invest in companies dealing in sustainable technology, either in fully matured or highly innovative but nascent categories, Rele said.

Clean technology refers to any product, service or process that delivers value using limited or no non-renewable resources and creates significantly less waste than the conventional offerings. “We are talking to a number of investors to secure commitments. We will do our first closing of $100 million by December-end and achieve full closure by January next year,” Rele said.

Besides traditional cleantech areas like solar power and wind, the fund will leverage opportunities in emerging areas like biofuels, air and water pollution management, soil conservation and organic farming, besides renewable energy, solid waste management, biomass combustion, co-generation systems, rainwater harvesting, waste water treatment and recycling technology.

The $150-million fund will have an investment range of $5 million to $15 million (Rs 23 crore to Rs 70 crore) each in order to help ventures across a range of clean and green technology segments. “We will consider investments in the sub-$5 million category in ventures which employ very innovative technologies,” Rele said.

Rajeev Kumar, one of the advisors to the proposed fund, said it was the first cleantech venture platform aimed at helping ventures in the sustainability sector. “We will be looking at an exit window of three-seven years. The fund will also be keen to invest in off-grid micro power projects, which supply captive power to industries and technology parks,” Kumar said.