GPS Renewables Secures $50M in Debt Funding from Major Banks and NBFCs for Biofuel Expansion

GPS Renewables, a prominent player in India's clean energy sector, has successfully secured $50 million in debt funding from a consortium comprising leading banks and Non-Banking Financial Companies (NBFCs). The capital injection, led by institutions such as Punjab National Bank, HDFC, Yes Bank, and others, is aimed at fueling the expansion of the company's biofuel production capabilities across the nation.

Founded by Mainak Chakraborty and Sreekrishna Sankar, both alumni of IIM-B, GPS Renewables has been a trailblazer in the biofuels industry. With previous equity funding totaling $20 million from investors like Neev Fund II, Hivos-Triodos Fund, and Caspian Impact Investments, the company has established over 100 biogas plants, including Asia's largest Renewable Natural Gas (RNG) facility in Indore. This growth trajectory has culminated in a remarkable turnover of $60 million for the fiscal year 2023-24, representing a substantial 225% increase from the preceding year.

In addition to consolidating its domestic operations, GPS Renewables has embarked on an international expansion journey by acquiring Proweps Envirotech GmbH in Germany. Furthermore, the company has forged a strategic joint venture with Indian Oil Corporation to develop compressed biogas projects through its GPSR Arya platform. These initiatives underscore GPS Renewables' commitment to advancing sustainable green energy practices, both domestically and abroad.

The infusion of funds is poised to significantly bolster the company's efforts in fulfilling its extensive Memorandums of Understanding (MoUs), valued at $540 million, for various biofuel projects. This development aligns with the Indian government's proactive stance towards ramping up biofuel production, as reflected in the 2018 amendment to the National Biofuel Policy. The amendment seeks to promote the widespread adoption of Ethanol-blended petrol with concentrations of up to 20% ethanol nationwide, thereby fostering a greener energy landscape.

Commenting on the funding round, Tilak Minocha, Chief Finance Controller at GPS Renewables, emphasized the company's commitment to spearheading India's transition towards clean energy. Minocha highlighted the pivotal role of enhanced biofuel production capacity and streamlined adoption processes in driving this transition. He expressed confidence that the current influx of capital would accelerate GPS Renewables' expansion endeavors and contribute to India's journey towards sustainable green energy.

In conclusion, GPS Renewables' successful fundraising initiative underscores the growing momentum towards renewable energy adoption in India. With a solid financial footing and a strategic vision for expansion, the company is poised to play a pivotal role in catalyzing India's transition towards a more sustainable and environmentally conscious future.