Smart Joules Secures $8 Million Funding from IFU to Drive Energy Efficiency Initiatives

• ByStartupStory     |    March 1, 2024

Indian energy efficiency firm, Smart Joules, announced today the successful acquisition of $8 million in funding from the Investment Fund for Developing Countries (IFU), a Development Financial Institution under the Government of Denmark. The company revealed that these funds are earmarked for the implementation of its innovative Cooling-as-a-Service (CaaS) partnerships within the healthcare and hospitality sectors, with a primary focus on curbing energy consumption and carbon emissions.

The investment is pivotal in realizing Smart Joules’ ambitious goal of reducing 29 million tonnes of carbon emissions by 2030. The company plans to extend its reach to cooling-intensive sectors, including data centers, pharmaceutical manufacturing facilities, and commercial offices, leveraging the newfound financial support.

In a statement, Smart Joules expressed its intent to forge portfolio-wide partnerships across diverse industries, anticipating a cumulative reduction of approximately 7.5 lakh tonnes of CO2 emissions. The investment will also empower the company to assist clients in achieving a minimum 20% reduction in energy costs through strategic capital expenditure interventions.

Arjun Gupta, Founder and CEO of Smart Joules, expressed enthusiasm about being the first recipient of this transformative investment. Gupta highlighted the timely nature of the funding, emphasizing its crucial role in executing the company’s vision and robust pipeline of CaaS partnerships. He stated, “This investment will go towards saving energy, carbon emissions, and costs, allowing our customers to meet their decarbonization and profitability objectives simultaneously and starting immediately.”

Established in 2014, Smart Joules’ Cooling-as-a-Service solution stands out for its energy efficiency design. Nitish Chawla, Senior Investment Manager at IFU, acknowledged the company’s proven track record, stating, “Smart Joules has proven solutions that significantly reduce energy consumption and greenhouse gas emissions from cooling of commercial buildings that are rapidly growing in numbers.”

Under the India Green Finance Initiative, IFU has consistently directed its investments towards initiatives driving the green transition in India, aligning with the nation’s sustainability goals.

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