Two Point O Raises $10 Mn to Finance Clean Energy Projects Across India

India’s clean energy transition is attracting growing investment, but smaller projects across factories, commercial buildings and industrial facilities continue to face a funding shortage. While rooftop solar, battery storage and energy-efficiency solutions can help businesses reduce costs, accessing the capital needed to deploy them remains a challenge.

Mumbai-based Two Point O Capital is looking to address this gap by combining financing, technology and project execution through a single platform.

The startup has raised $10 Mn (around ₹95 Cr) in a Series A funding round led by Transition Venture Capital (TVC). Existing investor Omnivore and angel investors Chiranjeev Singh Saluja and Sudhir M Reddy also participated in the round.

Two Point O plans to use a significant portion of the fresh capital to finance clean energy asset deployments for commercial and industrial (C&I) customers. It will also invest in strengthening its technology platform and expanding its team.

The fundraise comes two years after the company secured more than $6 Mn through a combination of equity and debt in 2024.

### Addressing the Financing Gap in Distributed Energy

Founded in 2024 by Karan Bhutani, Archit Mehrotra, Manya Ranjan and Shashidhar Reddy, Two Point O focuses on financing smaller clean energy projects that often struggle to attract institutional capital.

A large share of investment in India's clean energy sector has traditionally gone towards utility-scale and grid-connected projects. Smaller installations for businesses and industrial facilities have received comparatively less attention.

Two Point O aims to serve this underserved market through financing options, turnkey solutions and equipment leasing.

Its offerings cover four key areas:

- **Rooftop solar:** Financing and deployment support for solar installations at commercial and industrial properties.
- **Battery energy storage systems (BESS):** Solutions that help businesses manage electricity consumption and reduce peak-demand costs.
- **Energy efficiency:** Upgrades to systems such as heating, cooling and air compressors to improve energy performance.
- **Wastewater treatment:** Projects designed to improve water treatment and resource utilisation.

The company offers different financing arrangements depending on customer requirements. Its wholly owned non-banking financial company (NBFC) subsidiary handles loan disbursements, while a separate operating entity manages leasing and service-based arrangements.

### Technology at the Centre of Its Financing Model

Two Point O says it has developed a proprietary underwriting engine to evaluate projects based on their technical specifications, expected performance and the customer's credit profile.

According to cofounder and CEO Karan Bhutani, the system enables the company to prepare techno-commercial proposals for customers within 24 to 48 hours.

Its technology also plays a role after a project has been deployed. The startup says its installed assets are IoT-enabled, allowing it to monitor performance in real time.

This data is used for preventive maintenance, performance optimisation and verification.

Rather than managing installation and maintenance directly, Two Point O works with original equipment manufacturers and engineering, procurement and construction (EPC) partners. The company oversees project execution through technology, contracts and performance monitoring.

This relatively asset-light operating model is intended to help it expand without building a large on-ground execution team of its own.

### A Cross-Selling Strategy to Grow Existing Accounts

Two Point O is positioning itself at the intersection of clean energy and lending technology. Instead of targeting a large number of customers from the outset, it has focused on securing major commercial and industrial clients and offering them additional solutions over time.

The strategy is designed to reduce customer acquisition costs while increasing the value generated from each relationship.

The startup claims to have onboarded around 25-30 large customers so far. These include Premier Energies, Godrej, JK Tyre, Morepen Pharma, Wipro and Phoenix Mills.

Bhutani estimates that the company's existing customer base could generate transactions worth ₹400-500 Cr over the next two to three years.

The startup has also reported that its assets under management (AUM) grew 1.5 times sequentially in each of the last three quarters.

### Expansion Plans Across Industries and Business Segments

With the new funding, Two Point O plans to expand beyond its existing customer base and enter the small and medium enterprise (SME) segment.

Its broader priorities include:

- Expanding its presence across India.
- Growing AUM to between $75 Mn and $100 Mn over the next couple of years.
- Entering additional sectors, including data centres, automotive, pharmaceuticals, manufacturing and healthcare.
- Increasing the deployment of clean energy assets and strengthening its technology capabilities.

The expansion comes as India's clean technology market continues to develop. According to IMARC Group, the country's clean tech market could reach $95 Bn by 2034.

Two Point O is targeting a specific part of this opportunity: businesses that need financing and operational support to adopt distributed clean energy solutions.

### Can Two Point O Scale Its Multi-Asset Model?

Two Point O is attempting to solve a practical problem in India's energy transition. Smaller businesses and industrial facilities may have access to viable clean energy technologies, but financing and execution challenges can prevent projects from moving forward.

By bringing financing, technology and project oversight together, the startup hopes to make these deployments easier for businesses.

Its multi-asset approach could also help it deepen relationships with existing customers. A company that initially adopts rooftop solar, for instance, could later explore battery storage or energy-efficiency upgrades through the same platform.

However, expanding across multiple asset categories and geographies will not be straightforward. The company will need to maintain strong credit assessment practices, ensure that deployed assets perform as expected and closely monitor its execution partners.

Entering the SME segment could bring further challenges, particularly around credit risk, technology requirements and regulatory compliance.

Ultimately, Two Point O's ability to convert its growing customer base and AUM into sustainable revenue and profitability will determine how effectively it can scale.

The $10 Mn fundraise gives the startup additional resources to pursue that ambition. The bigger test will be whether it can make financing and deploying smaller clean energy projects commercially viable at scale.