GEF Capital Partners, which last week led a funding round in the global products and solutions unit of Vedanta-owned Sterlite Power Transmission, has made a fresh bet in the modular construction segment.
The clean energy-focused investment firm, created as a collaborative spinout from the Global Environment Fund in 2018, has invested $20 million (Rs 170.2 crore) in EPACK Prefab, a turnkey solutions provider for pre-engineered building (PEB), pre-fabricated modular structures, and insulation products.
This funding round from GEF Capital was the first for the company, according to a release.
The funding is meant to support EPACK Prefab’s initiatives towards sustainability in modular construction.
The proceeds will be used to strengthen its manufacturing capabilities at its facilities in Greater Noida, Ghiloth (Rajasthan), and Mambattu (Andhra Pradesh), which collectively have an annual production capacity over of 133,924 metric tonnes.
Enhancing production capabilities, accelerating new product development, and expanding presence is on the company’s agenda. Additionally, the funds will be directed toward enhancing research and development initiatives.
The company also plans to expand its market presence in international markets.
“Modular construction technologies play a key role in decarbonization of the construction sector, with their lower GHG footprint and higher climate resilience,” said Krishnan Ganesan, Managing Director of GEF Capital Partners.
GEF Capital Partners closed its second fund, the South Asia Growth Fund II (SAGF II) at $200 million in March 2022. It is now targeting $400 million for its third fund, the SAGF III, for which it has secured commitments for over half of the target amount.
The fund focuses on equity investments in small and medium enterprises (SMEs) that drive climate action and environmental sustainability.
GEF Capital Partners has offices in Washington, São Paulo, and Mumbai, according to the company website.