Ecozen to issue 950 NCDs at 11.5% for 27 months; green shoe up to INR 25 crore
Climate-tech company Ecozen is set to raise INR 95 crore in debt from Momentum Capedge through a fresh issue of non-convertible debentures (NCDs), according to a report. The Pune-based firm has approved 950 Series E NCDs of INR 10 lakh face value each, with a green shoe option of up to INR 25 crore.
Deal Contours & Use of Proceeds
The debentures carry a coupon of 11.5% per annum and a tenure of 27 months, as per the report. Ecozen plans to utilise the proceeds for immediate capital requirements to support business growth.
This will be Ecozen’s third debt transaction in the past 12 months. In November 2025, the company lined up about INR 111.6 crore in NCDs from UTI International and Spark Capital, while in January 2025 it secured over USD 23 million (~INR 190 crore then) in debt from responsAbility Investments AG, Northern Arc Capital and others.
Business Overview
Ecozen Solutions is a Pune-based climate-tech leader providing solar-powered solutions for agriculture. Founded by IIT alumni, the company transforms the farm-to-fork value chain through Ecofrost (portable solar cold storage) and Ecotron (smart irrigation controllers). Using AI and IoT, Ecozen empowers 1.2 million+ lives by reducing waste and boosting farmer income.
Financial Footing & Growth Markers
Ecozen’s operating scale expanded sharply in FY25, with revenue rising to about INR 889 crore and profit nearing INR 95 crore. The firm’s EBITDA margin improved during the period, reflecting operating leverage as volumes scaled, the report added.
The company says it has manufactured more than 3 lakh Ecotron solar pump controllers to date, including 1 lakh units between March and December 2024, underscoring demand in agriculture-linked clean-tech solutions. Management has previously flagged an 83% revenue CAGR over three years, supported by growth in controllers and cold-chain products.
Capital History & Investor Mix
Prior to the upcoming issue to Momentum Capedge, Ecozen raised USD 30 million in April 2024 through a mix of equity and debt from Nuveen and others, alongside debt support from InCred Credit Fund and the U.S. International Development Finance Corporation, company communications show. Cumulatively, Ecozen has mobilised upwards of USD 70–76 million across equity and debt so far.
Founded by Devendra Gupta with co-founders Prateek Singhal and Vivek Pandey, Ecozen builds climate-smart solutions spanning motor controls, IoT and energy storage. Its flagship products are Ecotron (solar pump controller) and Ecofrost (solar cold storage), with expansion into adjacent cooling and solar applications.
Market Context
Ecozen’s latest debt round underscores the growing use of structured borrowings by hardware-led clean-tech firms to finance working capital and inventory as order books scale, industry reports suggest. Ecozen’s prior debt lines and improving profitability metrics appear to have supported access to capital on standard tenors and coupons for mid-market borrowers.
Ecozen’s Debt Funding At a Glance
- Amount: INR 95 crore via Series E NCDs; green shoe up to INR 25 crore.
- Terms: 11.5% coupon; 27-month tenure.
- Instrument: 950 NCDs at INR 10 lakh face value each.
- Recent debt raises: ~USD 23 million in Jan 2025; ~INR 111.6 crore in Nov 2025.
- FY25 snapshot: Revenue ~INR 889 crore; profit ~INR 95 crore (per Fintrackr).
- Scale indicators: 3 lakh+ Ecotron units manufactured to date.
Conclusion
Ecozen’s planned INR 95-crore NCD issue to Momentum Capedge extends its use of debt funding alongside prior equity support, helping bridge near-term capital needs as shipments scale. With profitability improving and unit volumes rising, the company is positioned to deepen its footprint across solar-powered pumping and cold-chain solutions, though execution and working-capital discipline will remain key through FY26.
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