Indian solar energy tech firms see $1 bn funding in Jan, despite 9% dip in 2023: Report

New Delhi, Feb 23 (IANS) – Indian solar energy tech companies have received a total of $1 billion in funding within the first month of 2024, despite a 9% dip in 2023, according to a report by market intelligence platform Tracxn.

In 2023, the sector secured funding worth $1.55 billion, which was 9% lower than the $1.7 billion raised in 2022. Majority of the funding comes from late-stage rounds, with Sukhbir Agro Energy raising $1 billion in its private equity round in January 2024.

Late-stage funding in 2023 decreased by 23% from the previous year, while early-stage funding saw a dramatic sixfold increase to $252 million. Despite the funding, no unicorns have emerged from the sector so far.

Delhi leads the cities in terms of total investment received, followed by Gurugram and Mumbai. To date, Delhi-based solar energy startups have raised $3.1 billion, followed by Gurugram ($2.7 billion) and Mumbai ($2.3 billion).

The Indian solar energy sector has seen 43 acquisitions to date, with 16 of them taking place in the last few years. In 2024, only one acquisition has been recorded so far, with 49 companies going public, including three IPOs in 2023 and two in 2022.

The report reflects the changing landscape of the solar energy industry in India, with a mix of challenges and opportunities apparent. Despite the dip in funding in 2023, the sector continues to attract a significant amount of investment, positioning it as an important player in the renewable energy space.