SAN FRANCISCO — Redaptive, which assists commercial and industrial customers in using less energy, has closed $156.5 million in funding led by CarVal Investors. Existing investors CBRE, Engie New Ventures, Evergy Ventures and Linse Capital also invested in the company alongside CarVal. Redaptive will use this new capital to expand its energy efficiency offerings to meet growing demand from customers.
Redaptive helps companies use energy efficiency retrofit programs without upfront capital and guarantees results using directly measured building data. This allows companies to reduce their costs while continuing to scale their operations. Redaptive has partnered with a growing number of companies around the world, including Iron Mountain, McKesson, Saint-Gobain, SRS Distribution, Avantor, Swedish Health Services and more.
“Achieving our sustainability commitments and optimizing our capital allocation are key components to our business strategy and are important to our employees and customers around the world,” said Dan Anninos, Iron Mountain’s VP of Global Facility Management. “Redaptive has played a fundamental role in helping us achieve broad emission and energy reductions, through our energy efficiency programs, while all along preserving internal capital for our core business in North America and across Europe.”
These strong partnerships have been pivotal to the company’s continued growth and demand. Redaptive’s guaranteed energy and cost savings, risk management, and program funding have resulted in reduced energy emissions for scores of customers, as sustainable infrastructure rises as a global imperative. Thus far, Redaptive has enabled over $380 million in sustainability projects and a total energy reduction of 1.1 billion kilowatt-hours, which is equivalent to approximately 778,000 metric tons of CO2 or 1.8 million barrels of oil consumed.
“More companies are seeing the benefit of running their operations smarter, more efficiently, and more sustainably,” said Jerry Keefe, a Principal at CarVal Investors. “Providing companies with a way to reduce their energy and carbon footprint and save on costs without having to spend any capital is the perfect innovation for times like these and we see a bright and bankable future for Redaptive and their model.”
Redaptive’s ability to lower facility maintenance costs, reduce grid reliance and perform data-driven energy efficiency retrofits is accelerating their customers’ ability to exceed their sustainability goals while maintaining their bottom line. Current offerings include energy-efficient lighting and heating, ventilation and air conditioning (HVAC) systems, including boilers, chillers and rooftop units. With this funding, the company will be able to expand its offerings and deploy over $1 billion in new projects.
“We’ve achieved record sales this year, despite the global pandemic. By reducing costs for our customers we’re seeing an increase in commitments from companies to make their facilities more efficient, resilient and sustainable,” said Redaptive CEO Arvin Vohra.