The fundraise came after Redaptive canned its plans for an IPO.

Redaptive offers energy-efficiency upgrades as a service to commercial buildings including fully-funded, end-to-end sustainability solutions that save money, build resiliency and meet ESG goals. The company raised about $200 million from the Canada Pension Plan Investment Board. Certain existing investors, including Linse Capital and CBRE, will also be participating in the investment. Redaptive is expecting to announce a second close in early 2023. (CPP Investments)

According to Bloomberg, the company was valued at close to $1 billion in the round.

According to recent research, the Energy-as-a-Service market in North America is forecasted to grow at a 30% CAGR between 2022 and 2030, from US$4.8 billion to US$38.5 billion, and Redaptive is likely to be a beneficiary if this growth because it provides enterprise customers with data-driven energy generation and efficiency programs including HVAC, LED lighting, solar, EV and other utility upgrades that can be deployed at large sites or across distributed real estate portfolios.

Founded in 2015, Redaptive is estimated to have secured bookings growth of over 100% year-over-year in 2022.

Last year, it also filed listing documents with the US Securities and Exchange Commission. However, it later scrapped plans for the IPO.

“This funding gives Redaptive the capability to accelerate our growth and help more customers reach and exceed their energy efficiency and sustainability goals,” said Redaptive CEO Arvin Vohra.

Bruce Hogg, Managing Director, Head of Sustainable Energies at CPP Investments said: “This investment is consistent with our focus on investing in best-in-class companies that are supporting the global energy transition by innovating in energy efficiency, sustainable energy, and the deployment of data solutions.”

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Photo by Federico Beccari on Unsplash