Redaptive, an energy efficiency solutions company, has received an investment of $200 million from Canada Pension Plan Investment Board, to help the company accelerate growth and expand customer reach.
Existing investors, Linse Capital and CBRE will also be a part of the investment with an expected second closure in early 2023.
Redaptive finances and installs energy generation and efficiency equipment to help companies reduce energy waste and lower carbon emissions. The company provides enterprise customers with data-driven energy generation and efficiency programs including HVAC (Heating, Ventilation, and Air-Conditioning), LED lighting, solar, electric vehicle, and other utility upgrades that can be deployed at large sites.
The company pays for the upfront costs and allows consumers to overcome the financial and logistical barriers in implementing energy efficiency measures and achieving their sustainability goals.
Sharing his views on the investment, Redaptive CEO Arvin Vohra, said, “In CPP Investments, we have found a partner who understands our mission and shares our passion for making carbon reduction an attainable goal for organizations around the world. This funding gives Redaptive the capability to accelerate our growth and help more customers reach and exceed their energy efficiency and sustainability goals.”
CPP Investments’ Sustainable Energies group has net assets of about C$30 billion (~$22.01 billion) as of September 30, 2022, including investments across the global energy system including renewables, utilities, and power generation.
“We are excited about funding Redaptive’s growing business which helps organizations to rapidly reduce energy consumption, save internal capital, and meet GHG emission reduction targets across their entire real estate portfolios,” said Bruce Hogg, Managing Director, Head of Sustainable Energies at CPP Investments.
Last month, Runwise, a provider of building heat management solutions, raised $19 million in a Series A funding round led by Fifth Wall, to help expand its operations and technology to buildings throughout the country, increasing building efficiency, lowering costs, and ultimately reducing fossil fuel emissions.
According to Mercom’s 9M And Q3 2022 Funding and M&A Report for Storage, Grid & Efficiency. VC funding for Energy Efficiency companies in 9M 2022 was up by $269 million compared to the $5 million raised in 9M 2021.
Earlier this year, GridPoint, a building energy management, and optimization technology provider, closed a $75 million strategic capital raise led by the Sustainable Investing Group within Goldman Sachs Asset Management (Goldman Sachs).