Two Point O Raises $10 Mn Series A to Fund India's Distributed Clean Energy

Mumbai-based Two Point O Capital has raised $10 Mn (nearly ₹95 Cr) in a Series A round led by Transition Venture Capital (TVC) to finance clean energy deployments for factories, commercial buildings and industrial facilities that traditional lenders skip past.

Existing backer Omnivore participated, along with angel investors Chiranjeev Singh Saluja and Sudhir M Reddy. The round lands two years after the startup raised over $6 Mn through a mix of equity and debt in 2024, taking total funding past $16 Mn.

Where does the money go?

A major chunk of the fresh capital will fund deployment of clean energy assets for commercial and industrial (C&I) customers. The rest will strengthen Two Point O's tech stack and ramp up hiring.

The bet addresses a specific gap. India's clean energy transition is pulling in significant capital, but most of it flows into utility-scale projects. Smaller installations at factories, commercial buildings and industrial sites still face a financing shortfall — even when the technology is commercially viable and cuts operating costs.

"There was a lot of capital that was getting pumped into utility-scale, grid-scale projects. But there wasn't enough capital inflows into the distributed or decentralised energy projects, to put it simply, for industries and buildings," cofounder and CEO Karan Bhutani told Inc42.

What does the platform actually do?

Founded in 2024 by Bhutani, Archit Mehrotra, Manya Ranjan and Shashidhar Reddy, Two Point O operates at the intersection of lending tech and B2B clean energy enablement. Its offerings span four asset classes:

• Rooftop solar for commercial and industrial facilities
• Battery energy storage systems (BESS) to optimise consumption and manage peak demand
• Energy efficiency upgrades across heating, cooling and air compressors
• Wastewater treatment projects

The financing runs through two entities. A wholly-owned NBFC subsidiary handles loan disbursals, while a separate operating entity covers lease and service-based requirements.

Bhutani claims the startup built a proprietary underwriting engine that assesses a project's technical specifications, performance and credit profiles — and turns around a techno-commercial proposal within 24 to 48 hours. After deployment, all assets are IoT-enabled, with real-time data feeding preventive maintenance, performance optimisation and verification.

Two Point O doesn't install or maintain anything itself. It relies on original equipment manufacturers and engineering, procurement and construction (EPC) partners, overseeing them through technology and contracts. Bhutani said this "light-touch" model lets the startup scale operations.

Who are the customers?

The startup's playbook is to land big-ticket clients and cross-sell additional solutions, keeping customer acquisition costs low. It has onboarded 25-30 large customers so far, including Premier Energies, Godrej, JK Tyre, Morepen Pharma, Wipro and Phoenix Mills.

Bhutani estimates that the existing customer base could generate ₹400-500 Cr in transactions over the next two to three years. Assets under management have grown 1.5X sequentially in each of the last three quarters.

What's next?

Two Point O is operating in a market that IMARC Group sizes at a potential $95 Bn by 2034. Its targets for the next couple of years:

• Enter the SME segment and expand across India
• Build an AUM of $75 Mn to $100 Mn
• Move into new sectors including data centres, automotives, pharmaceuticals, manufacturing and healthcare

The multi-asset model could deepen customer relationships and drive repeat business. But scaling across asset classes will demand strong underwriting, consistent asset performance and tight oversight of operating partners — and the SME push adds technology, regulatory and credit-assessment risks of its own. Whether Two Point O converts its customer base and accelerating AUM into sustained revenue and profitability will decide if the $10 Mn buys more than growth on paper.