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Smart grid venture capital (VC) funding in Q2 2013, totaled Rs 300 crore ($50 million) in ten deals. Except for Q3 2012, VC funding has been stuck in the Rs 300 crore to Rs 420 crore ($50-$70 million) range with 9-12 deals for almost two years, according to Mercom Capital Group.
Mercom Capital Group Llc, a consulting firm, released its report on funding and mergers and acquisitions (M&A) activity for the smart grid sector during the second quarter (Q2) of 2013.
“Even though the number of deals were consistent compared to the last few quarters, this was one of the lowest funding quarters in the last four years,” said Raj Prabhu, CEO of Mercom Capital Group.
The top 5 deals were led by Enlighted, which raised Rs 120 crore ($20 million) in a Series C round. New investor RockPort Capital led the round and was joined by new investor DFJ JAIC. Existing investors Kleiner Perkins Caufield & Byers, Draper Fisher Jurvetson, and Intel Capital also participated in the round. C3 Energy raised Rs 90 crore ($15 million). Optimum Energy raised Rs 73.20 crore ($12.2 million) in a round led by new investor Navitas Capital (backed by a venture capital advisory relationship with Johnson Controls). The round also included existing investor Columbia Pacific Capital Management. Ecolibrium Energy received Rs 9.60 crore ($1.6 million) from Infuse Ventures and International Finance Corporation. Rounding out the top 5 was Integrated Energy Management Solutions, which raised Rs 6 crore ($1 million).
Home and building automation companies totaled most deals in the sector worth Rs 198 crore ($33 million) in five deals, followed by grid optimisation companies that raised funds worth Rs 102 crore ($17 million) in three deals and advanced meter infrastructure (AMI) and security companies with one deal each.
There were three M&A transactions in Q2 2013. The lone disclosed transaction this quarter was Cisco’s acquisition of JouleX for Rs 642 crore ($107 million). Last quarter, there were four transactions, of which only one was disclosed for Rs 66 crore ($11 million).
