Candi Solar, a clean energy company specializing in distributed solar solutions, has secured a landmark $58.5 million in debt financing led by the International Finance Corporation (IFC). This transaction, the company's largest funding round to date, elevates its total capital raised to over $200 million. The investment is earmarked to accelerate the deployment of solar projects for commercial and industrial clients across India and South Africa, reinforcing the company's position as a key player in emerging energy markets.
A Strategic Financial Partnership
The complex financing package is structured to blend concessional and commercial capital, a model designed to de-risk investments in the distributed energy sector. It includes $6.5 million from the Canada-IFC Blended Climate Finance Platform, up to $42 million from IFC’s own account, and a $10 million concessional loan from the Clean Technology Fund. This innovative structure aims to absorb early-stage operational risks while upholding stringent environmental, social, and governance (ESG) standards.
Fueling Expansion in Key Emerging Markets
The new capital injection is set to directly finance nearly 200 MWp of new distributed solar projects for commercial and industrial clients. This expansion will benefit businesses in India and South Africa by providing affordable, reliable clean energy and reducing operational costs. Candi Solar’s growing client roster, which includes major corporations like Toyota, IFF, and Pick n Pay, underscores the increasing demand for sustainable energy solutions in the region.
Bruno Rauis, Director of Candi Solar, described the funding as the largest facility the company has ever closed, calling it a catalyst for its next growth phase. He emphasized that the IFC's involvement builds confidence among global investors, enabling access to larger capital pools for accelerated scaling. This partnership reinforces Candi's ambition to become a leading distributed energy provider in its key markets and beyond, as noted by Managing Director Nishant Sood.
Validating a Proven Business Model
This significant investment from a World Bank Group member serves as a powerful endorsement of Candi Solar's results-based business model. The company's installed portfolio has more than doubled to over 220 MWp in the last 18 months, demonstrating strong performance and reliability. KJ Mahoney, Head of Capital Structuring, noted that the IFC’s backing proves distributed solar can meet the highest standards of governance and impact, paving the way for more global investment.
Cláudia Conceição, IFC's Regional Director for Southern Africa, highlighted the strategic importance of distributed solar in boosting energy access and efficiency. She stated that the partnership with Candi Solar showcases how innovative financing can unlock private capital at a significant scale. This collaboration supports small and medium-sized businesses, fostering job creation and enhancing operational resilience against power volatility while advancing national net-zero goals.
A Clear Path to Future Growth
With this new capital, Candi Solar has a clear runway for its next chapter of expansion and innovation. The company aims to grow its contracted portfolio beyond 400 MWp by 2026, effectively doubling its current capacity. This growth strategy also includes deepening its product offerings by integrating energy storage solutions to provide even greater reliability and value for its clients across diverse industrial sectors.
This debt financing round follows a $24 million equity and mezzanine raise earlier in the year, setting a strong foundation for future fundraising activities. The company is already planning for a substantial Series D funding round in 2026 to support its long-term vision. This forward-looking strategy signals Candi Solar's confidence in the continued growth and investability of the distributed solar market in emerging economies.
Ultimately, the IFC's substantial investment marks a pivotal moment for Candi Solar, validating its performance-linked model and significantly strengthening its capacity for growth. This partnership not only propels the company's expansion but also signals the increasing maturity and attractiveness of the distributed solar sector in India and South Africa. The collaboration is set to accelerate the clean energy transition for businesses, contributing to greater grid stability, job creation, and sustainable economic development.