In a strategic move aimed at expanding its foothold in the renewable energy sector, Godrej has increased its stake in rooftop solar startup Zunroof. The company has invested Rs 20 crore (approximately $2.3 million) through its family office, ANBG Enterprise LLP, with additional support from investor Ravindernath Chadha.
Zunroof Secures Rs 20 Crore Funding Round
Zunroof, a six-year-old startup known for its expertise in the design, installation, and financing of rooftop solar solutions, has successfully raised Rs 20 crore in its latest funding round. The company’s board approved the issuance of 75,960 equity shares at a price of Rs 2,638 each. This new investment further strengthens the relationship between Zunroof and Godrej, which has been a significant backer of the firm.
Since its inception, Zunroof has garnered attention for its use of artificial intelligence to enhance the efficiency of solar rooftop systems. In recent years, the company has expanded its offerings to include smart home products, tapping into the growing IoT-enabled product segment. The latest investment will help Zunroof continue to innovate in both solar energy and smart home technology.
Growing Investment Portfolio and Zunroof’s Progress
With this latest round of funding, Zunroof’s total raised capital now stands at approximately $9 million. Prior to this investment, Godrej held a 51% stake in the company, and its increased financial commitment further underscores its confidence in Zunroof’s future prospects.
Recent financial disclosures show that Zunroof is on a path to improvement. For the fiscal year ending March 2024, the Gurugram-based company managed to narrow its losses by 51.7%, a significant achievement in a sector that has seen limited funding in recent years. However, Zunroof’s operating scale declined by 11.46%, with revenues of Rs 29.84 crore for FY24.
Despite these challenges, Zunroof is positioned as a competitive player in the rooftop solar market, facing competition from companies like SolarSquare, Cleantech, and Mysun. The solar energy space has witnessed renewed investor interest, with significant funding rounds for companies like SolarSquare and Glow, showing a promising outlook for the sector.
The Solar Sector’s Renewed Interest
The past few years have seen a lull in investment for solar startups, but the sector is bouncing back. Zunroof, which now competes with other prominent players, is benefiting from the renewed confidence in clean energy ventures. Notable recent investments in the industry include $40 million for SolarSquare and $30 million for Glow, demonstrating that the appetite for clean energy solutions is growing stronger.
This trend highlights the increasing recognition of renewable energy as a vital component of global sustainability efforts. Zunroof’s ability to leverage advanced technology in both solar and smart home products positions it well to capture a growing share of the market.
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