Exclusive: Energy-management startup Redaptive nets $50M
Redaptive, a Denver-based startup that manages energy use in buildings, raised $50 million in Series E extension funding, the company exclusively tells Axios.
Why it matters: The new tranche of funding brings Redaptive's Series E total to $250 million. The initial Series E funding closed in December.
Details: Private equity firm and long-time Redaptive investor Linse Capital led the additional $50 million in equity funding.
- CEO Arvin Vohra tells Axios that an unnamed strategic investor also participated in the second closing, but declined to share details.
- The influx of new funds did not change the company's valuation, which was pegged at $1 billion in December, per Bloomberg.
How it works: Redaptive makes software to help building owners better manage energy consumption.
- The company has three primary revenue streams. The first is an energy-as-a-service product, which provides building owners funding to make energy efficient upgrades via a combination of Redaptive's balance sheet and third-party financing.
- It also has a data software component, which looks like a typical hardware-connected SaaS business, and a project management component where Redaptive manages construction contractors and other on-the-ground project needs.
- Redaptive's customers include Iron Mountain, Aramark and Cintas. The company typically works with large companies that have significant real estate footprints either through manufacturing centers, warehouses or offices.
What we're watching: Real estate tends to be a large contributor to a company's total emissions footprint, so we're watching whether Redaptive's pipeline of projects picks up as the SEC disclosure rules — which will require all companies to report said emissions — go into effect.