Bangalore-based, renewable energy startup, Carbon Masters has raised an undisclosed amount from Indian Angel Network (IAN) and Sangam Ventures, a pure-play cleantech venture fund. The funding round was led by IAN investors Nagaraja Prakasam, Mridula Ramesh and Karthik Chandrasekar from Sangam Ventures. IAN is claimed to be India’s first and World’s largest angel investor network.
As the part of the deal, Nagaraja Prakasam and Karthik Chandrasekar will join Carbon Masters as Board Members. This will help in strengthening the leadership team.
On the company, Nagaraja Prakasam, IAN investor and lead said:
Carbon Masters is the first in the country to produce a branded bottled bio-CNG product unleashing the potential of bio-gas. Our portfolio company Saahas (Zero Waste) which manages 30 tons/day of Bangalore waste is to supply wet waste to Carbon Masters that will get converted to bio-CNG. This will power Saahas vehicles and another portfolio company Freshworld’s (Farm on eWheels) vehicles.
Further adding to that, he said:
Carbonlites enables conversion of Bangalore waste to renewable energy that can be used both for commercial cooking displacing LPG and to power vehicles. The by-product of the process also produces, organic fertilizer which will be sold to Freshworld farmers forming a CIRCULAR ECONOMY. Thus, through our association with the company, we aim to help the company unlock the vast market potential for its products, possibly on a global scale
On the segment, Karthik Chandrasekar, Founder & CEO, Sangam Capital Advisors said:
India has barely used its biogas energy potential and the sector has suffered from poor corporate and investor interest while European markets have saturated their potential. The Carbon Masters’ team is focused on developing marketing and distribution linkages under the CarbonLites brand between producers of biogas (and organic-fertilizer) – farmers, municipalities and agro-industries (lot of whom flare the gas) and consumers for gas and fertilizer in both rural and urban markets. We believe they have found the key to institutionalization of the biogas sector in India!
Established in 2012, Carbon Masters has pioneered the development of India’s first bottled bio- CNG brand Carbonlites. Launched in 2014, Carbonlites is bio-CNG produced from the biomethanisation of organic waste streams, diverts waste from landfills mitigating methane emissions, displaces LPG for commercial cooking, and other fossil fuels for transport and backup power generation.
On the investment, Som Narayan Co-Founder, Carbon Masters said:
We are extremely thankful to Indian Angel Network and Sangam Ventures whose faith in our vision will take us a step closer to achieving our goals. Carbonlites can provide India with a lower cost, carbon neutral alternative to the use of fossil fuels. That it can also provide a more sustainable way of managing organic waste streams in Indian cities makes it a unique carbon mitigation solution. It will be invaluable in helping India achieve its climate change goals under the Paris Accord
Describing further about the segment, Narayan further added:
The market for LPG in the commercial and Industrial sector is large and growing. India is the 4th largest market for LPG in the world. For instance, in Bangalore, there are 6000 restaurants and Hotels consuming on average 25kgs of LPG per day (54,750tons per annum). Our first plant in Malur will be producing around 1.5 tons per day ( 547 tons per annum ) giving us ample room to grow
The company claims to have also entered into a partnership agreement with the Mahindra & Mahindra organization whereby they are investing in building large scale waste to energy plants. The first such plant is expected to be operational from July in Malur, Karnataka.
The company has recently won two Government of India tenders for their Carbonlites in a box product. Both tenders will involve waste to power as opposed to waste to gas for cooking.
The company is planning to utilize the funds in the domain of product and project developments, marketing. The company is also looking to enhance their engineering levels.