A San Francisco-based startup that helps building owners make their properties more energy efficient has raised $156.5 million.
Founded in 2015, Redaptive Inc. targets big businesses and offers to help green-ify their office locations by installing systems and equipment that the startup owns but the client has the option to buy, according to Bloomberg News.
The latest funding round, which boosts Redaptive’s total raise to more than $181 million, was led by CarVal Investors LP. Existing investors, including CBRE Group, also took part.
“What we’d like to get to is overseeing the entire utility experience and energy experience for these customers and take them down the glide path to carbon neutrality, while making it economic,” Redaptive CEO Arvin Vohra told Bloomberg News.
Redaptive isn’t the only firm that wants to help building owners go green: Earlier this year, Fifth Wall Ventures launched a building sustainability fund with the goal of helping landlords reduce their emissions.
Developers and building owners may need more assistance with retrofitting their properties for energy efficiency as cities look to reduce their carbon footprints. In 2019, New York passed Local Law 97, which puts strict caps on emissions from buildings larger than 25,000 square feet. Building owners are also required to display energy efficiency grades.
[Bloomberg News] — Sylvia Varnham O’Regan