Indian off-grid solar energy enterprise Mera Gao Power has raised $2.5 million in equity funding from the Insitor Impact Fund, the ENGIE Rassembleurs d’Energies Initiative and the Electrification Financing Initiative.
The investment was made with the support of Singapore-based Impact Investment Exchange (IIX), an impact enterprise that bridges the gap between finance and development, carving out third space for global social and environmental solutions by unlocking investment capital
The Uttar Pradesh-based company plans to use this latest funding to expand to over 5,000 additional rural off-grid villages across the state, providing over 50,000 households with access to reliable energy for the first time, according to an official statement.
“IIX strives to support innovative high-impact enterprises that deliver meaningful social and environmental impact at scale, while offering financial returns to investors. IIX is delighted to support the growth of Mera Gao Power and a cutting-edge approach to delivering clean, affordable and reliable off-grid energy to thousands of households across India”, said IIX’s Managing Director, Robert Kraybill.
Founded in 2010, Mera Gaon Power, is focussed on providing low-cost energy services to remote villages in India that have under 50 households. It offers a solar-powered micro-grid which costs less than $1,000 to install and provides access to energy for the most remote villages at under $2 per month.
“The off-grid market in India is enormous but complex. MGP’s approach to serving off-grid households is unique in its targeting of very poor off-grid hamlets with a basic, affordable electricity service,” said Nikhil Jaisinghani, co-founder of Mera Gao Power.
“At the same time, MGP’s business model has attractive returns. This investment in MGP has both high social and financial returns with unique long term relevance,” he added.