- CSTS Home
- Impact Capital
- News & Events
- CSTS Home
- Impact Capital
- News & Events
Husk Power Systems Set to Scale Reliable and Renewable Energy Solution to Underserved Rural Areas around the World
Friday, Oct. 26, 2012
We are excited to share this news from GSBI Alumni Husk Power Systems!
Husk Power Systems, Inc. (HPS), an innovative company providing renewable and affordable decentralized energy solution to underserved communities, is pleased to announce that the company has raised Series A equity financing of US $5 million from co-investors Bamboo (Oasis Fund) Finance, Acumen Fund, and LGT Venture Philanthropy. Acumen Fund and Bamboo Finance led the Series A financing process along with LGT Venture Philanthropy. DFJ and CISCO will remain invested in the company having converted their existing investment to equity capital.
“HPS continues to demonstrate the commercial viability of providing affordable electricity to low income communities. We believe their model can be replicated in many countries. We are excited about their progress and investing in their ongoing growth,” said Jean-Philippe de Schrevel, Chief Executive Officer of Bamboo Finance.
HPS has been a pioneer in using 100% biomass waste (rice husks, straws and other crop straws etc.) gasification process for generating electricity and distributing power directly to households. The company has successfully implemented 80 mini-power plants that serve over 200,000 people in more than 300 villages. This is no small feat and this de-centralized model of electricity generation and distribution was validated on July 31, 2012 when 670 million Indians on the centralized grid suffered blackouts (http://www.nytimes.com/2012/08/01/world/asia/power-outages-hit-600-million-in-india.html?pagewanted=all&_r=0) while 200,000 people served by HPS mini-grids had their lights on. With this new equity capital, HPS aims to rapidly expand its operations in rural India and East Africa and power the lives of over 10 million people in rural areas. The company is also looking to raise up to US $4 million of term loan to support its expansions organically and through its “franchise” partners.
“Never before has the need for safe energy alternatives been greater and it’s remarkable to be a part of what Husk Power has been able to accomplish in recent years,” said Sachindra Rudra, Director of Acumen Fund India. “This additional investment represents an important step in Husk’s evolution as it continues to scale and provide affordable and reliable electricity across rural areas that need it most.”
“While Series A financing positions HPS to exponentially scale its modular energy solution, it is paramount to understand that such scaling would be practically impossible without the right mix of capital that consists of equity and debt capital and equally importantly grant capital necessary to address systemic issues like training rural talents, and discovering low-cost smart metering and grid solution”, said Manoj Sinha, Co-Founder of Husk Power Systems. HPS formed strategic partnership with Shell Foundation in 2008 and has received grant funding. The company also partnered with Overseas Private Investment Corporation to secure low rate term-loan in June 2012.
Simon Desjardins, who manages Shell Foundation's Access to Energy Program, said: "Husk Power is a global pioneer in the rural electrification sector and is proving that de-centralized power provision is a viable model to reach rural households and businesses. Their recent fundraise will enable significant scale in India and Africa that will further validate their approach and create impact."
The company’s expansion strategy will focus on leveraging its core competency of providing very low cost renewable energy at community scale and addressing systemic challenges like training a large number of rural people for running and managing power plants through Husk Power University. In addition, HPS plans replicate its model in multiple locations by expanding its “Franchise” network in different geographies. Going forward, HPS will utilize a combination of biomass power plants (with larger plants of size of 100-250KW) with AC grid and Solar powered plants with DC grid as appropriate. The company is actively looking for talents and partners with passion to help achieve the ambitious growth targets of installing over 2,000 mini-power plants.
"This long awaited closure of financing strengthens and validates the growing confidence in the market of rural electrification using “ecosystem approach” that Husk Power Systems started. We plan to thrive in the diversity of our efforts and build on the platform we have created in past 5 years. Thus far we have been a good promise. This financing round will go a long way in making us a solution for the world”, said Gyanesh Pandey, the Co-Founder and Chief Executive Officer of Husk Power Systems.
About Husk Power Systems:
Husk Power Systems is a rural empowerment enterprise. The company focuses on inclusive rural development on the backbone of renewable energy solution. Unlike any other effort in the world, it creates a self-sustaining ecosystem in the villages it serves, enabling economic development along with environmental protection, physical well-being and strengthening of the rural communities. A humble effort spearheaded by locals from the communities served, HPS strives to touch more than 10 million lives over the next five years, in rural areas across the world. For more information, please visit http://www.huskpowersystems.com/.
About Bamboo Finance:
Bamboo Finance is a commercial investment firm managing 250M USD representing a unique portfolio of direct investments around the world with offices in Bogota, Singapore, San Francisco, Luxembourg and Geneva. Bamboo specializes in the financing of entrepreneurship globally. We use a market-oriented approach to deliver social value environmental value and financial returns to investors. Please visit http://www.bamboofinance.com/ for more information.
About Acumen Fund:
Acumen Fund is working to create a world beyond poverty by investing in social enterprises, emerging leaders and breakthrough ideas. We invest patient capital in business models that deliver critical goods and services to the world’s poor, improving the lives of millions. Since 2001, Acumen Fund has globally invested more than $80 million in 72 companies. We are also working to build a global community of emerging leaders that believe in creating a more inclusive world through the tools of both business and philanthropy. Please visit www.acumenfund.org for more information.
About LGT Venture Philanthropy:
LGT Venture Philanthropy is an impact investor supporting organizations with outstanding social and environmental impact. Our team in five continents strives to increase the sustainable quality of life of less advantaged people by inspiring clients for active philanthropy, providing individualized philanthropic advice and investment implementation. Our broad range of clients benefits from the experience, systems, processes and networks built by implementing the philanthropic engagement of the Princely Family of Liechtenstein/LGT Group. Please visit http://www.lgtvp.com/ for more information.