Given an unprecedented wildfire season in California, climate change is top of mind for concerned citizens, politicians and investors in the Bay Area looking to make a difference.
San Francisco-based greentech company Redaptive is looking to attack the issue of climate change head-on by helping its clients transition to renewable energy.
The company announced Wednesday that it raised $150M in a private placement funding round to help businesses become more environmentally friendly. The round, led by Carval Investors, will go toward helping the company expand its product offerings, hire additional talent and invest in new projects.
Redaptive guides commercial and industrial customers through the process of planning, installing and financing renewable energy solutions for their buildings. The company takes care of everything from replacing lighting fixtures to upgrading heating, ventilation and air conditioning (HVAC) systems.
Through the use of directly measured building data, Redaptive enables energy efficiency upgrades without upfront capital. With its work, the company aims to help numerous enterprises both reduce their operation costs and help the environment.
For Redaptive CEO Arvin Vohra, sustainability isn’t merely a passion, it’s a necessity for what he sees as a planet in crisis.
“Sustainability matters because we're investing in our future generations, and that’s not really embedded in the DNA of society globally, right now,” Vohra said in an interview with Built In.
After several years working as an investment banker, Vohra wanted to seek out a way to apply his work ethic to a cause he was passionate about.
“When I left the bank, I was like, how can I take my financial dorkiness and apply it to a good cause,” Vohra continued.
And thus, Redaptive was born. Vohra hopes Redaptive can leave a lasting impact on both the planet and the company’s clients.
“[We’re] looking to, you know, make a small dent in the net initiative, hopefully a large dent, but I think society as a whole needs to bring that awareness. We want to drive that awareness, we want to drive sustainable outcomes for our clients,” Vohra said.
Despite the pandemic, the company has achieved record sales this year, according to Vohra.
“When the pandemic first hit, you know, we were scared. That’s the honest truth,” Vohra said. “Our installers couldn’t get into buildings to install the energy efficient equipment and most of the buildings were shut down because we had transitioned to remote work environments.”
But all hope was not lost. The work Redaptive was doing with hospitals and retail bank branches in particular continued, as both segments began to use additional energy for deep cleaning their facilities.
Later this summer, the company’s work with pharmaceutical companies and other manufacturers began to pick up as COVID-19-related restrictions began to lift around the country.
“Last year, we were nine figures in terms of bookings; this year, we’ve already crossed our entire 2019 bookings, and by the middle of next year we’re looking to double as a result,” Vohra said.
As Vohra looks to the future, he feels confident about the future prospects for Redaptive and the world’s response to climate change.
“Climate change is starting to matter a lot more [to people] than I’ve ever seen, and I’ve been in this space since 2008 ... I’ve never seen a moment in time where it’s mattered more than now,” Vohra said.
Redaptive has raised $181.5 million in venture capital financing to date, according to the company.
