Clean energy financing platform Two Point O Capital has secured $10m in a Series A funding round led by Transition Venture Capital, the company announced on Monday. The Indian startup plans to use the capital to fund equipment deployment for commercial and industrial clients, strengthen its underwriting software and hire staff.
Key points
- Transition Venture Capital led the $10m round, with participation from existing investor Omnivore and angel backers Chiranjeev Singh Saluja and Sudhir M Reddy.
- Two Point O provides debt and equipment leasing for rooftop solar, battery storage, energy efficiency systems and industrial wastewater treatment.
- The company operates a wholly owned non-banking financial company to disburse loans alongside a leasing entity for service contracts.
- Targeting commercial clients such as Godrej and Wipro, the startup aims to grow its assets under management to between $75m and $100m over two years.
Closing the distributed power funding gap
Large utility-scale solar farms and wind installations attract substantial domestic and international investment across India. Smaller clean power installations built directly on factories, warehouses and office complexes often struggle to secure bank debt. Two Point O co-founder and chief executive Karan Bhutani told Inc42 that capital had favoured grid-scale developments over industrial sites.
“There was a lot of capital that was getting pumped into utility-scale, grid-scale projects,” Bhutani said. Decentralised generation across commercial sites faced tighter credit terms, even when energy savings offered clear operational payback.
Bhutani established the company in 2024 alongside Archit Mehrotra, Manya Ranjan and Shashidhar Reddy to combine financial technology with distributed power installations. Two Point O previously raised more than $6m in equity and debt during its launch year. The latest $10m injection, equivalent to approximately 950m Indian rupees, expands its balance sheet as industrial power demand rises.
Software and automated underwriting
Traditional banks and non-banking financial companies (NBFCs) assess distributed energy through standard corporate credit metrics, which can slow project approval. Two Point O relies on an automated underwriting engine to analyse technical specifications, predicted generation yield and company balance sheets.
The company said this system produces binding techno-commercial financing proposals within 24 to 48 hours. By standardising risk assessment across smaller equipment footprints, the startup aims to reduce loan origination overheads that make decentralised clean power unappealing to conventional lenders.
Two Point O structures deals through two corporate arms. A wholly owned NBFC subsidiary handles direct loan originations, while an operating company manages leasing agreements and service contracts. The company works across four main asset categories: rooftop solar, battery energy storage systems, heating and cooling efficiency upgrades, and industrial wastewater treatment.
Hardware monitoring and light-touch execution
Two Point O does not build or service clean energy hardware itself. Instead, the firm partners with original equipment manufacturers and engineering, procurement and construction contractors to install hardware across client sites.
To maintain oversight of financed equipment, all installations are linked to internet-of-things sensors. Real-time operational data feeds back into Two Point O’s central software to monitor electrical output, verify efficiency gains and trigger preventive maintenance before hardware breaks down. Bhutani described this contractor-led model as an operational structure that allows the platform to expand without the balance sheet burden of heavy field operations.
Client base and industrial expansion
The company has established early business by selling multiple clean energy systems to large corporate accounts. Its client roster includes 25 to 30 corporate groups, such as Godrej, Wipro, JK Tyre, Morepen Pharma, Premier Energies and Phoenix Mills. Bhutani estimated these existing corporate clients could generate between 4bn and 5bn Indian rupees in transaction volume over the next two to three years.
Assets under management at the company expanded 1.5 times quarter-on-quarter over the past three quarters. Two Point O plans to use its new funding to expand from enterprise groups into small and medium enterprises across India. It also intends to introduce financing programmes for data centres, car factories, pharmaceutical manufacturing plants and hospitals, working towards an asset portfolio between $75m and $100m.
