Lever for Growth: CleanMax raises funds from Brookfield Renewable

Indian renewable energy company Cle­an­Max Enviro Energy Solutions Private Li­mited has raised $360 million from Canadian investor Brookfield Rene­wable. With this, Brookfield Renewable has acqu­­i­r­ed a controlling stake in the co­mpany. This will allow CleanMax to ma­intain market leadership in the commercial and industrial (C&I) segment, and pursue its plans of be­coming a 5 GW platform over the next th­ree to four years.

Founded in 2011, CleanMax has been a front runner in providing green energy to multinational and large corporates, aiding their sustainability efforts and decarbonisation goals. It has helped over 350 corporate consumers adopt renewable energy. It manages a portfolio of over 1.6 GW of ope­rating wind and solar projects and supplies over 3,076 GWh of green energy an­nu­ally, helping offset about 2.5 million tonnes of CO2 every year.

Brookfield has made an equity investment through a secondary purchase of sh­ares fr­om existing shareholders, and pri­mary ca­­­pital infusion. It will work with existing shareholders and management to drive the platform’s growth in India’s C&I segme­nt. The investment was made through the Brookfield Global Transition Fu­nd, Bro­okfield’s impact fund to accelerate net zero transition. The transaction will help deepen Brookfield’s presence in India, where it has deployed billions of dollars. CleanMax can leverage Brook­fie­ld’s global relationships, ac­cess to capital and operational expertise. Brookfield will now have over 9 GW of diversified as­s­ets across wind, solar and hybrid in se­ven Indian states. This will be Brook­field’s second major renewable deal in India this year, after its $1 billion investment in Ava­ada Ventures.

CleanMax is expected to continue growing its footprint in the renewable energy segment for C&I consumers, and the latest equity fundraising will serve as a lever. The company is also looking to explore growth avenues in the corporate renewable energy space, and assess and pursue other value creation drivers. Going forward, as Indian corporates increasingly decarbonise and align their operations to support the government’s net zero goals, the company will expand further.