Two Point O Raises $10M Series A Led by Transition VC for Clean Energy

Two Point O Capital, a Gurugram-based clean energy financing startup, has raised $10 million (about ₹95 crore) in a Series A round led by Transition Venture Capital, Inc42 reported. The company did not disclose a valuation.

Existing backer Omnivore also joined the round, alongside angel investors Chiranjeev Singh Saluja and Sudhir M Reddy. The new capital follows more than $6 million that Two Point O raised in 2024 through a mix of equity and debt, according to Inc42 and BW Disrupt. The Gurugram headquarters is per Elets BFSI.

Financing Commercial Rooftops, Batteries and Water Systems

Founded in 2024 by CEO Karan Bhutani, Archit Mehrotra, Manya Ranjan and Shashidhar Reddy, Two Point O provides financing, turnkey solutions and equipment leasing to commercial and industrial (C&I) customers. It works across four asset classes: rooftop solar, battery energy storage systems, energy efficiency equipment such as heating, cooling and air compressors, and wastewater treatment.

The company runs two entities. A wholly owned NBFC subsidiary handles loan disbursals, while a separate operating entity covers leasing and service-based contracts. A proprietary underwriting engine produces techno-commercial proposals within 24 to 48 hours, and every deployed asset is IoT-enabled for monitoring. Two Point O does not install equipment itself; OEM and EPC partners do that work under its technology and contractual oversight.

Bhutani has framed the opportunity around where clean energy money has gone so far. "There was a lot of capital that was getting pumped into utility-scale, grid-scale projects," he told Inc42, pointing to smaller C&I installations as underserved.

Traction: Blue-Chip Customers and Quarterly AUM Growth

Two Point O counts 25 to 30 large customers, including Premier Energies, Godrej, JK Tyre, Morepen Pharma, Wipro and Phoenix Mills. Its assets under management have grown 1.5 times sequentially in each of the last three quarters. The company estimates its existing customer base could generate ₹400 crore to ₹500 crore in transactions over the next two to three years.

Use of Funds and Expansion Plans

The Series A will go toward financing clean energy asset deployment for C&I customers, strengthening the technology stack and hiring. The company aims to reach $75 million to $100 million in AUM over the next couple of years, move into the SME segment, expand across more regions of India, and target sectors including data centres, automotive, pharmaceuticals, manufacturing and healthcare.

Why It Matters

The round backs a specific gap in India’s energy transition: mid-sized commercial and industrial projects that are too small for the capital flowing into utility-scale assets and that, by the company’s account, have been comparatively underserved. By pairing an NBFC for loans with a leasing entity, Two Point O can offer both debt and asset-as-a-service structures to the same customer.

The asset-light execution model is the other key choice. Leaving installation to OEM and EPC partners while keeping underwriting and IoT monitoring in-house lets the company scale its loan book without building field crews, but it also makes partner oversight central to credit quality.

The target of $75 million to $100 million in AUM implies a step change from a business founded only two years ago. A Series A led by a new institutional investor, with existing backer Omnivore returning, suggests investors see the 1.5x quarterly AUM growth and enterprise customer list as evidence the model can stretch into SMEs and new sectors.

Source

Inc42 — Two Point O Bags $10 Mn To Bridge The Financing Gap In Clean Energy