The Green Growth Equity Fund (GGEF), India’s climate change fund, has received a $70 million investment from the CDC Group, a UK government-owned development finance firm. Eversource Capital, a joint venture between private equity firm Everstone Group and British Petroleum’s renewable energy platform Lightsource bp, manages the fund.
The portfolio comprises Radiance, a renewable energy solution for commercial and industrial customers; e-mobility platform Greencell Mobility; utility-scale renewable energy platform Ayana; Integrated waste management platform Everenviro; and wastewater management platform Kathari. Further, the funds will be used by the GGEF to support the development of ‘green infrastructure’ businesses in India. The company claims to be unlike many other funds in that it uses a ‘platform model.’ This implies the fund creates a firm from the ground up in a field of interest, then expands the platform by acquiring additional companies in the sector.
As per a company statement to GGEF the platform can generate operational economies and scalability by bringing together a number of smaller businesses with comparable business strategies under one roof. This business model is critical for increasing profitability and growing a large enough company to attract a buyer. The platform will also bring investees’ environmental, social, and (corporate) governance (ESG) norms to an unified level. In September 2021, the CDC announced its plans to invest up to $1 billion in climate funding to India over the next five years. This commitment will fund climate mitigation projects and businesses and enhance national efforts to align with the Paris Agreement.