Redaptive, an Efficiency-as-a-Service tool for commercial and industrial customers, secured $150 million in private placement funding after raising $6.5 million earlier this year.
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CarVal Investors led the round that included existing investors CBRE, Engie New Ventures, Evergy Ventures and Linse Capital. Including this new funding, the San Francisco-based company has raised approximately $180 million since its inception in 2013, Redaptive CEO Arvin Vohra told Crunchbase News.
The company enables energy efficiency retrofit programs, such as materials, installation and maintenance, without upfront capital, through the use of directly measured building data. This allows companies to reduce their costs while continuing to scale their operations, Vohra said.
Redaptive intends to use the new cash infusion to expand its offerings, hire more talent and invest in new projects.
“We have experienced traditional growth, but now we want to expand our team on the sales and marketing, and research and development areas,” Vohra said. “We can expand the runway with this $150 million and enable $750 [million] to $900 million, even up to $1 billion in developments.”
The company’s growth in terms of bookings rose to nine figures in 2019, and he expects that to double for 2020. Redaptive is currently on track to reach that amount.
Sheeraz Haji, senior adviser at Engie New Ventures and Redaptive board member, said the firm has been tracking Vohra and his success with another company. When Engie and Redaptive began working together, Haji decided to get more involved.
“It was really clear that Redaptive was the pioneer because of the strength of the team,” he said in an interview. “The market is well served by Redaptive, especially by those Fortune 1000 companies that were not going after energy efficiency as fast as they could.”
Meanwhile, working with companies, such as Iron Mountain, Redaptive enabled more than $380 million in sustainability projects and a total energy reduction of 1.1 billion kilowatt-hours.
“Achieving our sustainability commitments and optimizing our capital allocation are key components to our business strategy and are important to our employees and customers around the world,” said Dan Anninos, Iron Mountain’s vice president of global facility management, in a written statement. “Redaptive has played a fundamental role in helping us achieve broad emission and energy reductions, through our energy efficiency programs, while all along preserving internal capital for our core business in North America and across Europe.”
Illustration: Dom Guzman