Redaptive Inc., a company that manages energy-efficiency upgrades for commercial buildings, raised $200 million from Canada Pension Plan Investment Board in a funding round after withdrawing its plan for a US initial public offering.
(Bloomberg) — Redaptive Inc., a company that manages energy-efficiency upgrades for commercial buildings, raised $200 million from Canada Pension Plan Investment Board in a funding round after withdrawing its plan for a US initial public offering.
The San Francisco-based company was valued at close to $1 billion in the round, according to a person with knowledge of the matter who asked not to be identified discussing private information.
Some existing investors, including Linse Capital and CBRE, will also be participating in the investment, according to a statement reviewed by Bloomberg News. The company is expected to announce a second close early next year.
Arvin Vohra, Redaptive’s chief executive officer, said the company’s growth trajectory is “very attractive” even though it tabled its IPO.
“It’s a phenomenal time for Redaptive, despite the macro environment,” he said.
A representative for Redaptive declined to comment on the company’s valuation.
Redaptive filed listing documents with the US Securities and Exchange Commission last year. It reported a $35 million net loss on $68 million in revenue in 2021, according to an updated filing in March.
The company could consider going public within a couple of years, Vohra said.
Founded in 2015, Redaptive uses software and meters to take a a snapshot of the energy usage. It then installs new gear, such as lighting or air conditioning, or recommends ways to operate more efficiently. The company owns and operates the equipment itself, charging customers based on the savings in energy bills. Vohra described the operation as a “repair or replace model.”
His business is one of several upstarts selling energy management services as the industry scrambles to curb carbon emissions. Currently Redaptive offers ways to upgrade lighting, heating and cooling, and water services, as well as solar panels. Vohra said the company is working on adding features for energy storage and electric vehicle fleets.
Through the end of 2021, Redaptive disclosed in a filing that it had installed about 2,700 project upgrades at 2,400 customer facilities. The number of customer facilities is now “shy of 3,000,” Vohra said.
(Corrects number of facility upgrades in last paragraph.)
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
