Climate finance startup Two Point O raises $10 million to finance clean energy for businesses in India

Two Point O has raised $10 million in funding led by Transition Venture Capital to scale up clean energy financing and battery storage for businesses in India.

Related: Enterprise AI startup Ema raises $77 million in Series B funding led by Creaegis

Two Point O Capital (TW.O), a climate finance startup, has secured $10 million (around ₹95 crore) in a funding round led by Transition Venture Capital. Omnivore, an existing investor, also took part, alongside angel investors Chiranjeev Singh Saluja and Sudhir M Reddy.

The Mumbai-based firm assists commercial and industrial (C&I) businesses in adopting clean energy and water management solutions. It brings together financing, technology and project execution to lower the upfront investment needed for sustainable infrastructure.

Using the new capital, Two Point O intends to move into battery energy storage systems (BESS). It will also grow its current solar energy, energy efficiency and wastewater treatment operations.

In addition, the startup seeks to serve more customers in sectors including data centres, automotive, pharmaceuticals, manufacturing and healthcare. These industries use large amounts of energy and water, which drives demand for affordable and dependable infrastructure.

This latest funding round represents a significant milestone in Two Point O’s goal of making clean energy adoption simpler for Indian businesses.

The $10 million funding round was led by Transition Venture Capital. Omnivore, an existing investor, carried on its backing, and angel investors Chiranjeev Singh Saluja and Sudhir M Reddy also took part.

Below is a closer look at the investors:

The involvement of current investors shows sustained interest in Two Point O’s business model. It further underscores increasing investor focus on companies that link climate finance with practical clean energy deployment.

Reports indicate that the startup had raised $6.3 million earlier, in 2024. Following this latest round, its overall funding now stands at roughly $16.3 million.

Two Point O intends to use the investment to grow its clean energy asset portfolio, enhance its technology platform, and reach additional commercial and industrial customers.

Its growth strategy centers on four key areas.

1. Move Into the Battery Energy Storage Market

A major priority for the company is to enter the market for battery energy storage systems.

Battery storage systems hold electricity so it can be used when demand rises or when renewable energy generation drops. Companies can rely on these systems to handle peak electricity demand, boost energy reliability and optimise energy costs.

Through this expansion, Two Point O will be able to give customers more than conventional solar energy solutions.

2. Grow Solar Energy Solutions

The startup will keep expanding its solar energy business. Solar installations can assist factories, offices, and commercial facilities in lowering their reliance on conventional electricity sources.

Yet, setting up solar infrastructure frequently demands considerable upfront capital. Two Point O seeks to tackle this challenge by providing financing options together with project deployment.

3. Enhance Energy Efficiency and Wastewater Treatment

Two Point O likewise intends to grow its businesses in energy efficiency and wastewater treatment.

By upgrading equipment and industrial systems, energy efficiency projects can assist companies in cutting their electricity use. In the same way, wastewater treatment solutions can enable businesses to manage water resources more responsibly.

Such services are especially pertinent to industries that consume large amounts of energy and water.

4. Reinforce Technology and Broaden Recruitment

The company also intends to upgrade its technological infrastructure and step up its hiring.

Its AI and machine learning platform assists with project evaluation, financial underwriting and asset monitoring. The platform aids in assessing project risks, monitoring equipment performance and spotting maintenance needs.

This new funding will help reinforce these capabilities as the company grows its operations.

A lot of businesses are keen to adopt renewable energy and efficient water management systems. Yet the upfront investment and the complexity of executing projects can hold back adoption.

Two Point O tackles these obstacles with a full-stack model for deploying clean energy.

Rather than providing financing alone, the company unites capital, technology, equipment manufacturers, and engineering, procurement and construction (EPC) partners.

Its model assists businesses across the entire project lifecycle, from evaluating requirements to financing, deployment and monitoring.

Grasping the Business Model of Two Point O

The company’s strategy centers on three key components:

• Adaptable financing: Companies can obtain financing and asset-based solutions rather than bearing the full upfront investment on their own.
• Project delivery: Two Point O collaborates with equipment manufacturers and EPC partners to coordinate the rollout of projects.
• Tech-driven monitoring: Its digital platform assists in tracking asset performance and spotting possible maintenance requirements.

This approach can make clean energy projects simpler to embrace, especially for businesses that wish to keep capital available for their core operations.

Consequently, companies can pursue sustainable infrastructure without having to handle every technical and financial detail on their own.

Archit Mehrotra, Karan Bhutani, Manya Ranjan and Shashidhar Reddy established Two Point O Capital in 2024.

Together, the founding team has over 75 years of professional experience, gained at organisations including KKR, McKinsey, Shell, BP, Honeywell, ReNew, Sterlite Power and GIC.

Karan Bhutani is the CEO and co-founder of the company.

The founders spotted an opportunity in distributed clean energy projects aimed at commercial and industrial businesses. Although large-scale renewable energy projects draw substantial investment, smaller installations at factories, offices and industrial facilities can struggle to secure financing.

Two Point O seeks to close this gap by pairing financial solutions with project execution and technology.

Two Point O collaborates with commercial and industrial clients spanning various sectors.

The client portfolio it reports features prominent businesses such as:

• Premier Energies
• Godrej
• JK Tyre
• Morepen Pharma
• Wipro
• Phoenix Mills

These companies operate in industries that have varying energy and infrastructure needs.

For instance, manufacturing plants require dependable electricity to run production equipment. At the same time, data centres need uninterrupted power to keep their operations running.

Likewise, pharmaceutical and healthcare companies depend on reliable energy and water infrastructure.

By catering to a range of industries, Two Point O can grow its customer base and deliver multiple solutions to its existing clients.

The startup has reported significant expansion in its assets under management (AUM). Per the company, its AUM has grown roughly 1.5 times each quarter across the last three quarters.

It has also brought on board about 25–30 large customers, according to reporting by Inc42.

AUM refers to the value of the assets that a company manages or oversees. For a clean energy financing platform, this metric can signal the scale of projects and assets supported through its business model.

The company is also aiming to expand into the small and medium enterprise (SME) segment.

This could unlock an additional customer base. Smaller businesses frequently encounter difficulties in obtaining capital for solar installations, energy efficiency upgrades and other sustainable infrastructure.

By providing financing and deployment support, Two Point O seeks to make these solutions more accessible.

India’s commercial and industrial sector requires dependable energy to sustain manufacturing, digital infrastructure and economic growth.

Businesses are also under pressure to control electricity costs, enhance resource efficiency and lessen their environmental impact.

Yet, adopting clean energy infrastructure may demand considerable capital. This is where climate finance companies can play a significant role.

Major Opportunities Within the Clean Energy Market

1. Lower operating costs: Solar power and energy-efficient systems can assist businesses in controlling long-term electricity expenses.
2. Greater energy resilience: Battery storage can help manage energy during times of high demand or when supply is disrupted.
3. Improved resource management: Treating wastewater can help industries use water more efficiently and cut down on waste.
4. Sustainability goals: Adopting clean energy can help companies that are pursuing environmental and sustainability targets.

These opportunities generate demand for financing platforms that grasp both the financial and technical needs of clean energy projects.

Two Point O is positioning itself to meet this demand through its multi-asset business model.

Armed with $10 million in new funding, Two Point O is gearing up for its next stage of growth.

The company intends to move into battery energy storage, grow its solar and energy efficiency operations, and reinforce its wastewater treatment offerings. It also aims to broaden its footprint across energy-intensive industries.

Moreover, the startup is looking into opportunities within the SME segment and intends to bolster its technological capabilities.

Its capacity to blend financing, project execution and asset monitoring could help tackle a key hurdle in India’s clean energy transition: making sustainable infrastructure reachable for more businesses.

All in all, Two Point O’s $10 million funding round represents a significant milestone for India’s climate finance ecosystem. With businesses seeking cleaner and more efficient energy solutions, the startup seeks to simplify adoption through flexible capital and technology-driven project management.