Climate-focused deeptech startup Ecozen is poised to secure Rs 125 crore (approximately $13.2 million) in debt financing, led by Rajiv Poddar with contributions from Indel Money, InCred Finance, and other investors. This funding round highlights the growing investor interest in sustainable technologies and marks a significant boost for Ecozen, which seeks to bolster its working capital and support its expansion plans.
### About Ecozen
Founded by Devendra Gupta, Ecozen is a Pune-based startup that specializes in developing climate-smart deep-tech solutions. The company utilizes core technology stacks such as motor controls, IoT, and energy storage, with a focus on solar power. Its key products include Ecotron, a solar pump controller, and Ecofrost, a solar-powered cold storage solution. Over the years, Ecozen has attracted significant investment, raising over $100 million through various equity and debt rounds. Notable backers include Nuveen, Omnivore, and Dare Ventures, reflecting strong confidence in the startup’s innovative approach to sustainable technology.
### Funding Environment and Competition
The debt funding comes at a time when Indian startups are increasingly turning to alternative financing methods amid a tighter venture capital landscape. In January 2026, Ecozen raised Rs 95 crore from Momentum Capedge Limited, underscoring its ability to secure substantial debt financing. The current round involves the issuance of up to 1,250 non-convertible debentures (NCDs) with a face value of Rs 10 lakh each. This strategic move allows Ecozen to maintain its growth trajectory without diluting equity, a crucial advantage in a highly competitive sector.
Ecozen operates in a robust climate-tech and clean energy ecosystem, competing with companies like Powerflex, Inficold, and Khetworks. These competitors are also innovating in renewable energy and sustainable solutions, making the sector ripe for rapid development and technological breakthroughs. Ecozen’s focus on leveraging solar technology aligns well with India’s national goals of increasing renewable energy capacity and reducing carbon emissions.
### Implications for India’s Startup Ecosystem
Ecozen’s successful debt financing round is indicative of a broader trend in the Indian startup ecosystem, where companies are increasingly exploring diverse funding avenues. This trend is particularly pronounced in the climate-tech sector, which is witnessing a surge in interest due to heightened awareness of environmental issues and supportive government policies. Ecozen’s ability to attract substantial investment underscores the potential for startups that align with global sustainability goals and leverage innovative technologies.
The company’s impressive financial performance, with operating revenue jumping 2.5 times to Rs 1,150 crore in FY25 and profits surging 4.7 times to Rs 95 crore, further strengthens its position in the market. As startups in India continue to navigate a challenging funding environment, Ecozen’s approach provides a valuable case study in leveraging debt to fuel growth and innovation.
As Ecozen moves forward, its next steps will be closely watched by investors and industry stakeholders. The company plans to utilize the new funds to enhance its product offerings and expand its market presence. For founders and investors in the climate-tech space, Ecozen’s progress may offer insights into effective strategies for scaling operations and achieving financial sustainability. As the demand for clean energy solutions grows, Ecozen’s innovations could play a pivotal role in shaping the future of sustainable technology in India.
