About the Report
This report outlines the funding and investment landscape for two sectors of the Indian economy –
Access to Energy (A2E) and Sustainable Mobility (SM). It is organized in two main sections representing the two sectors. Each section can be visualized as a funnel including three main subsections – Sectoral Overview, Current Funding and Investment Landscape, and Takeaways for Investors and Funders.
Key Highlights and Recommendations:
Access to Energy (A2E)
- There is a huge unmet demand for access to clean and efficient energy. This can be the best opportunity for investor to enter the sector.
- There are significant gaps between the availability and need for both debt and equity in the financing of DRE enterprises.
- The A2E sector has its own set of challenges and uncertainties hence it calls for ‘patient capital’ investment without unrealistic demands of high financial returns at market rate.
- There is a huge potential to exploit gaps in last mile connectivity, system integrators, and efficient appliances. All these areas are waiting for more enterprises to take up the challenges.
- Several state governments have come up, or are in the process of coming up with enterprises-friendly policies in mini-grids and DREs. That is likely to increase the number of enterprises in these regions.
- Investors with impact focus can make-up for the lacklustre financial returns by ensuring social returns as these have been generally high when measured in terms of impact of the lives of people and energy reach.
- Several start-ups are coming up with innovative business models in supply chain models and distribution mechanisms.
- Public-Private-Partnerships can leverage private sector’s higher ability to innovate and the public sector’s capacity to validate new markets.
- The existing transportation and mobility status in Indian cities are either highly stressed or in a state of complete breakdown.
- With increasing number of metros and subways being constructed all across the country in India, the need for last mile transport services will increase.
- Collaborative approach by OEMs, charging infra enablers, battery suppliers and smart grid service utilities are must to power EV’s business case in India.
- With lithium battery prices coming down, there is an ideal opportunity for entrepreneurs and investors to jump into the battery and storage space.
- Cab-aggregators have a great opportunity to work on sustainable mobility given the extensive market reach they have established.