Corporate Funding In India Beats Global Blues, Remains High

Overall corporate funding in global sector may have come down significantly in the first quarter of the current fiscal, but when it comes to India, the numbers still look promising. Total corporate funding in the global solar sector reached $4.8 billion across 39 deals in Q1 2025—a 41 per cent decline year-over-year (YoY) compared to $8.2 billion raised through 42 deals in Q1 2024. But funding was up 20 per cent quarter-over-quarter (QoQ) from the $four billion raised in 40 deals in Q4 2024. That’s what the latest report from Mercom Capital Group, a leading clean energy consulting firm, suggests.

The drop in funding this quarter reflects growing investor caution in response to policy reversals, tariff shocks, and regulatory uncertainties that have forced companies and investors to reassess their strategies. But the fundamentals remain strong, and the long-term case for solar is intact. What we need now is clarity and policy certainty to restore confidence in the markets. Despite headwinds in the broader funding environment, we did see an uptick in project M&A in Q1. By all accounts, this is quite encouraging.

Global VC funding for the solar sector in Q1 2025 came to $1.4 billion in 14 deals, a 237 per cent increase YoY compared to $406 million raised in 13 deals in Q1 2024. Funding increased 40 per cent QoQ compared to the $one billion raised in 21 deals in Q4 2024. The QoQ increase was primarily driven by a single $one billion raise. Overall, the funding scenario in solar sector also looks promising, when it comes to India.

These deals included VC Funding, Public market funding, Debt Funding, M&A, Project M&A. In this period, AMPIN Energy Transition secured a $50 million equity investment from Siemens Financial Services, Amrut Energy secured Rs. one billion in funding from private equity investors, Solarium Green Energy raised Rs 105.04 crore through its IPO.

When it comes to ‘Debt Funding’, BluPine Energy has secured Rs. 17.87 billion, JSW Energy has raised Rs. 12 billion, SWELECT Group secured Rs. 2.9 billion, Ecozen raised over $23 million, Ecofy secured $12.5 million, Credit Fair raised $5 million from ‘Green Basket Bond’ issued by Symbiotics Investments.There have been M&A deals of decent size as well. ONGC NTPC Green (ONGPL), for instance, has signed a share purchase agreement to acquire a 100 per cent equity stake in utility-scale renewable energy platform Ayana Renewable Power for Rs 195 billion (nearly $2.3 billion).

Waaree has entered into a share purchase agreement with Enel Green Power Development to acquire 100 per cent of the share capital of Enel Green Power India for Rs. 7.92 billion. Besides, Brookfield Asset Management announced the sale of 1.6 GW portfolio of solar and wind assets in India to Gentari Renewables India for an undisclosed amount, while Actis acquired a 100 per cent stake in Stride Climate Investments from a fund managed by Macquarie Asset Management.