The funding round of ₹325 crore consists of an investment by Niveshaay, an investment firm, and is aimed at expanding the capabilities of Waaree Energy Storage Systems, which is a battery division of the larger Waaree Group, within a short time. This is a capital injection that is directly related to how the company can capitalize on the clean energy and storage markets in India, which are currently on the rise. 

Diverse structure of the fund

A total of ₹325 crore in funds was raised. In this round, Niveshaay performed the leading role and contributed a cumulative amount of ₹128 crore in the form of various funds. Niveshaay Sambhav Fund, Niveshaay Hedgehogs Fund, and recently launched Niveshaay WESS Fund are marked as one of the first dedicated Collective Investment Vehicles (CIVs) in India.

Other prominent co-investors who participated in the round include Vivek Jain (Managing Director at Action Tesa and GrowthSphere) and Saket Agarwal (former Director at Apollo Pipes Ltd and Apollo Tricoat). The presence of this combination of investors, with an SEBI-registered alternative investment fund (AIF) such as Niveshaay, is an indication of great confidence in the business model of Waaree and the future of the energy storage market.

Core objective and strategic usage of funds

The capital will be strategically invested to improve the whole value chain of battery production and implementation. The ultimate goal is to increase cell and pack production significantly. This includes expansion of the physical production capacity that must be used to satisfy the demand that is increasing at a rapid pace.

They will also use funds to enhance engineering and validation capabilities. This is essential in the advanced chemistry cell (ACC) space, where product reliability, safety, and performance are non-negotiable in terms of large-scale energy storage.

The capital will facilitate the scaling of containerised Battery Energy Storage Systems (BESS). BESS units will play a crucial role in the connection of intermittent renewable energy (such as solar and wind) to the grid, stable power delivery, and commercial solutions.

Though expanding nationwide in India is the main concern, the investment will also seek to extend BESS sales to select global markets, making Waaree a potential global player in energy storage.

Immense and integrated growth

Arvind Kothari, Founder of Niveshaay, pointed out that battery storage is going to be critical to the development of clean energy in India. The storage market in India is projected to increase rapidly from 0.4 GWh in 2024 to a projected 200 GWh in the year 2030. This tremendous growth trend is being supported by powerful government support.

The market has the advantages of favorable policy frameworks, such as the Production Linked Incentive (PLI) scheme on advanced cells and the Energy Storage Obligation (ESO). These policies enable storage to be cost-effective for utilities and commercial uses.

The current strengths of Waaree, such as its massive manufacturing capacities of solar and EPC (Engineering, Procurement and Construction), can form an excellent vertical integration of battery storage systems with the renewable energy projects. This vertically controlled system enables the organization to seize value in the manufacturing, integration, and long-term service strata.

Essentially, this is not merely a financial raise, but a strategic investment in a domestic platform that is meant to attain a high degree of scale and technology depth to enable India to meet the important energy transition objectives.

Conclusion

The ₹325 crore financing round, with Niveshaay contributing ₹128 crore out of its various funds, marks a significant breakthrough in terms of financial support for Waaree energy storage systems. The capital injection is planned to continue the growth of the core cell and pack manufacturing of the company, the development of its technical power, and the expansion of the company in terms of containerised BESS services not only in India but also in the particular markets around the world. This action squarely places Waaree Energy Storage Systems on a path of rapid growth and increment of capacity within the emerging energy storage market.