VC inflow in energy storage space rises 59%
However, total corporate funding in the energy storage sector in 2023 was 28% lower against $26.4 bn in 2022
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New Delhi: Funding through venture capital (VC) route into India’s energy storage sector has registered a 59 per cent growth, while the overall investments in the segment reported a 28 per cent decline, Mercom Capital said in a report on Wednesday.
The corporate funding in 2023 includes $9.2 billion funding through Venture Capital (VC), $9.8 billion through debt and public market financing, the research firm said. VC/PE funding in the energy storage space in 2023 was the highest-ever compared to the $5.8 billion raised in 2022. However, the total corporate funding in the energy storage sector in 2023 was 28 per cent lower against $26.4 billion in 2022, the ‘Mercom Annual and Q4 Funding Report’ said.
“Energy storage companies saw their highest VC funding in 2023, largely on account of the (USA’s) Inflation Reduction Act’s Investment Tax Credit and other incentives like manufacturing credits for battery components. The Merger and Acquisition (M&A) activity lagged due to high asset valuations, elevated interest rates, and investor caution,” said Raj Prabhu, CEO of US-based Mercom Capital Group.
