ARYA Secures INR 100 Cr Mezzanine Financing to Advance Sustainable Biogas Projects | Entrepreneur

By Entrepreneur Staff Oct 28, 2024

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ARYA, the project development arm of GPS Renewables, has successfully raised INR 100 crore in mezzanine financing from InCred Opportunities Fund and Spark Capital.

This funding is part of a larger INR 200 crore round currently being pursued by ARYA, aimed at enhancing its initiatives in the biogas sector.

The newly acquired funds will primarily be directed towards developing compressed biogas (CBG) projects under joint ventures with industry giants Indian Oil Corporation (IOCL) and Bharat Petroleum Corporation Limited (BPCL).

Mainak Chakraborty, CEO of GPS Renewables and Chairman of ARYA, stated, "The current round will accelerate our efforts towards fast-tracking our joint venture projects with Indian Oil Corporation and Bharat Petroleum. These projects have the potential to play a key role in India's transition to sustainable green energy."

"Over the last few years, we have been at the forefront of enhancing biofuel production capacity and streamlining adoption processes. Over the next year, our focus will be on expanding our capacity and strengthening partnerships with key players. We will continue to raise funds for the growth of our projects under the ARYA vertical to support India's clean energy goals," Chakraborty added.

Founded in 2022, ARYA is a wholly-owned subsidiary of GPS Renewables, designed to commission build-own-operate (BOO) projects and augment its climate impact ambitions. The vertical focuses on sustainable biofuels and industrial decarbonization projects, playing a crucial role in helping India achieve its Net Zero target. By incubating, developing, and operating climate-positive projects, ARYA works alongside GPS Renewables as the execution partner.

GPS Renewables has a proven track record in raising capital, having previously secured USD 50 million (INR 411.50 crore) through debt financing from prominent financial institutions such as Punjab National Bank, HDFC, Yes Bank, HSBC, Kotak Mahindra Bank, and ICICI Bank. Additionally, the company raised USD 20 million in equity funding from Neev Fund II by SBICap Ventures, Hivos-Triodos Fund, and Caspian Impact Investments.

As a full-stack biofuels firm headquartered in Bengaluru, GPS Renewables provides comprehensive solutions for the development, production, and distribution of biofuels. The company claims to have established over 100 biogas plants, including Asia's largest renewable natural gas (RNG) plant based on municipal solid waste in Indore, inaugurated by Indian Prime Minister Narendra Modi.

In a recent strategic move, GPS Renewables also acquired Germany-based Proweps Envirotech GmbH, a leading design and engineering company specialising in utilising municipal and industrial organic waste and agricultural residue for biogas production.