Artha Energy Resources (AER) has launched RenewShare, a renewable energy (RE) investment platform that enables fractional ownership of RE assets in the country. Launched as an autonomous investment platform, RenewShare caters to investors interested in diversifying their existing portfolio while being a part of the fast-growing RE landscape in India. The platform, during its launch, has already enlisted a Special Purpose Vehicle (SPV) with assets worth Rs.7 crore and an early investment commitment of Rs.10 crore from investors, with RE assets spread across 4 cities.
As an investor centric platform, RenewShare drives investments into the energy sector by developing RE as a lucrative asset class. It enlists thematic SPVs, wherein similar renewable energy projects in the wind and solar segment are combined after being thoroughly vetted by a team of experts. Investors have the choice and can pick a pool of SPVs with their preferred RE projects based on their risk appetite.
Identifying the gap in the RE investment sector, for rooftop and small-scale utility project financing, RenewShare will break the oligopoly created in the RE sector due to the high-ticket size of projects and facilitate bringing in the capital sustainably. SPVs listed on RenewShare would initially require an investment of Rs.20 lakhs from an investor. As a viable alternative to fixed income, the assets listed on the SPVs are filtered in a way to generate a 2x rate of return than the current prevailing long-term FD rates offered by leading Indian Banks. The platform would later be made available to retail investors. The impact investment platform will facilitate multiple investors to co-invest within a large pool of projects but with lower counter-party risk. The investments made in an SPV is split across multiple RE assets, thus lowering the risk considerably.
Commenting on the launch, Animesh Damani, Founder and CEO, RenewShare, said, “With the launch of RenewShare, we will enable investors to enter an otherwise high-cap market, while driving an environmental impact through green energy adoption. While RE has an impressive growth story, access to viable investment opportunities in the sector for most investors is virtually non-existent. The RE segment carries the tag of being an extremely expensive asset class to own and manage independently. We, as an aggregator aim to resolve this problem by facilitating to bring down the ticket size for investments”.
“With the initial total investment commitment of Rs.10 crore, the response from the investor circle has been overwhelming, which solidifies our belief in the huge potential and interest in the RE sector. Hence, we will facilitate over Rs.200 crores worth of transactions per annum by FY 2024 and are confident to help investors capture 10% of Indian OPEX projects. We are motivated to continue developing the sector towards becoming a coveted investment avenue while highlighting its contribution towards mitigating climate change”, he added.
The team at RenewShare conducts thorough due diligence of the assets listed on the platform and assists investors during the entire investment lifecycle for the investor. The platform offers a lower operational risk profile, as the SPVs only enlist those assets with a 95% uptime guarantee. In addition, RenewShare has anchor investors that ensure a minimum of 10% investment in all SPVs.
