Energy Infrastructure Startups Draw Bigger Funding Interest and Arka Fincap Secures Rs. 525 Crore

India’s energy and lending sectors are seeing fresh investor interest. Bengaluru-based Enerzolve and Chennai-based Tan90 Thermal are reportedly in advanced discussions for much larger funding rounds. At the same time, Kirloskar Group-backed Arka Fincap has signed an agreement for an initial Rs. 525 crore investment from TPG’s The Rise Funds.

These are different businesses, but they share one theme. Investors are backing companies that solve practical problems: reliable power systems, energy-efficient cooling, and access to formal credit.

Enerzolve is building equipment for a changing power grid

Enerzolve Smart Technologies, founded in 2025 by Abhay Adya and Anupam Kumar Bhatt, develops smart-grid equipment, power conversion systems, energy storage products, and metering solutions.

In simple terms, its products help power companies monitor electricity use, manage faults, and connect battery-storage systems to the grid. This matters because solar and wind power are not available at the same level throughout the day. Storage and better grid controls can help balance supply when demand rises.

The startup had earlier raised around $5.1 million in a seed round co-led by Jungle Ventures and Kae Capital. It is now reportedly in talks to raise about $20 million from its existing investors and Schneider Electric. The company has not publicly confirmed the proposed round, so the amount and final investor list may change.

If the deal happens, the funding could help Enerzolve take its products through testing, certification, manufacturing, and wider deployment. Its larger competitors include established electrical-equipment companies such as Schneider Electric, Siemens, and ABB. Enerzolve’s opportunity is to create products suited to Indian power conditions rather than relying entirely on imported systems.

Tan90 Thermal wants to make cooling less power-hungry

Tan90 Thermal was founded in Chennai in 2019 by Soumalya Mukherjee, Rajnikant Rai, and Shiv Sharma. The company makes thermal-management products for food, medicines, cold-chain logistics, and other temperature-sensitive goods.

Its core product uses phase-change materials, or PCMs. These are materials that absorb and release heat while changing state. Put simply, they can keep a delivery box cold for longer without needing a refrigerator to run continuously.

Think of a food-delivery company carrying dairy products in an insulated box. Instead of depending only on an active cooling unit, it can use thermal packs that store cooling energy. This can be useful for last-mile delivery, farm produce, vaccines, and pharmaceutical shipments.

Tan90 is reportedly discussing a funding round of about Rs. 100 crore led by Blume Ventures. The company and the investor had not commented on the report at the time of publication. Tan90 previously raised Rs. 20 crore in a Series A round led by NABVENTURES.

The fresh capital, if finalized, could support wider manufacturing, new thermal products, and expansion into cold-chain, HVAC, and data-centre applications. Its competitive set includes conventional refrigerated transport providers, cold-storage firms, and other makers of temperature-control packaging.

Arka Fincap gets growth capital for secured retail lending

Arka Fincap is not an early-stage startup. It is a Kirloskar Group-promoted non-banking financial company, founded in 2018, and led by Managing Director Samrat Gupta.

The company has signed definitive agreements for an initial Rs. 525 crore investment from TPG’s The Rise Funds, TPG’s impact-investing platform. A further Rs. 275 crore may be invested later, subject to agreed business goals and regulatory approvals. That could take the total investment to Rs. 800 crore.

Arka provides secured loans, including financing for vehicles and small businesses. A secured loan is backed by an asset or collateral, which can reduce risk for the lender compared with an unsecured loan.

Arka said it plans to use the capital to expand its presence, improve technology, and strengthen risk-management systems. This could help it serve more small businesses and vehicle operators who may find it difficult to access credit from traditional banks.

What this funding activity tells us

The three stories show where investor attention is moving. Energy hardware needs more money than a software-only business because products must be designed, tested, certified, and manufactured. Meanwhile, lending businesses need capital to grow their loan books safely.

For Enerzolve and Tan90, the reported talks are still not completed funding announcements. For Arka Fincap, the signed deal provides more clarity, though the additional Rs. 275 crore remains conditional.

Disclaimer

This article is for informational purposes only and is not investment, financial, legal, or business advice. Funding discussions involving Enerzolve and Tan90 Thermal are based on media reports and may change until officially confirmed. Readers should verify the latest information from company announcements or regulatory filings before making any financial decision.