Redaptive raises $100M from CPPIB for green upgrades
Redaptive, a company that finances, installs and monitors energy efficiency upgrades, raised $100 million investment from the Canada Pension Plan Investment Board, Axios has learned.
Why it matters: The size of the round and source of capital reveals how big the market is for energy efficient buildings.
How it works: Redaptive has three main revenue streams:
It provides financing to building owners to install efficiency upgrades; manages the installation process; and runs a SaaS business to monitor energy consumption.
The company typically works with big companies with large real estate footprints, such as food giant Aramark, information security firm Iron Mountain, and office uniform and cleaning supplies provider Cintas.
Flashback: CPPIB, among the world’s largest pension funds, previously invested $200 million in Redaptive in December 2022.
The fund also participated in Redaptive’s $250 million Series E, led by Linse Capital in May 2023.
Redaptive plans to raise further funding by the end of the year, CEO Arvin Vohra tells Axios.
What we’re watching: Redaptive in November 2022 withdrew plans for an IPO. It still has its sights set on going public.
“If the public markets are conducive, we have the infrastructure to pivot to an IPO, but it is not an immediate focus at this time,” Vohra says.