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Rays Power Infra closes Rs 200 Cr Mezzanine Funding From DMI Finance

With this investment the firm also plans to grow its co-development business model (“Co-Dev”), a bespoke model that Rays has pioneered in the Indian Solar Industry

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Rays Power Infra (Rays), one of India’s major solar EPC players, has successfully closed its first round of Rs 200 crore mezzanine funding from DMI Finance Private Limited (“DMI”). The current funding highlights Rays capabilities to raise funds and bolster its lucrative co-development business model of solar asset development in India.

With this investment the firm also plans to grow its co-development business model (“Co-Dev”), a bespoke model that Rays has pioneered in the Indian Solar Industry. The Co-Dev model is primarily a develop-and-sell model where the Company develops the asset and pre-commissions its sale to generate higher returns and efficiently utilize the capital invested.

Ketan Mehta, Founder and MD, Rays Power Infra said, “Rays Power Infra in its 7 years of existence has had an incredible journey starting as a solar power policy & advisory consultancy, moving to PPA advisory and bidding, design, EPC. In the last 3 years, the Company has entered the project development stage for providing our clients with integrated solutions. As co-developer partner, we are involved in financial closure and equity investment for development of project prior to sale. We intend to utilize the funds in pursuing development of further assets on co-development basis”

Anshuman Malur, Portfolio Manager, DMI Management Services Pvt. Ltd. commented on the transaction saying “We have been impressed by Rays’ ability to be nimble, while remaining disciplined, in capital allocation. It has grown rapidly and delivered excellent return on equity mainly due to the management’s ability to identify and execute on a unique business strategy. This transaction is consistent with DMI’s philosophy of providing flexible growth capital to good companies with superior management.”

Going forward, Rays is aggressively pursuing opportunities in distributed generation, rooftop solar assets and entering the retail sector with e-mobility solar solutions targeting retail consumers. The current funding will be a boost to these business initiatives.

Currently, Rays has built a solar portfolio of 64 MW and has an EPC track record of delivering [500+] MW of solar assets. The Company will use majority of the proceeds from this capital raise to strengthen their presence in the country and develop ground mounted solar power projects.


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