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Blue Earth Capital Partners With Aavishkaar Capital To Acquire Stake In Nepra

This transaction provides a full exit to AICL II, an early investor in Nepra

Blue Earth Capital Partners With Aavishkaar Capital To Acquire Stake In Nepra

Outlook Start-Up Desk

POSTED ON February 22, 2024 10:58 PM

Global impact investor Blue Earth Capital AG announced its investment in Nepra Resource Management, a dry waste management company that promotes circular economy in the country. The transaction has been done in partnership with leading India-based impact investor, Aavishkaar Capital.

BlueEarth, through its investment vehicles, has acquired a significant minority shareholding in Nepra from Aavishkaar India II Company Limited ("AICL II"), an investment vehicle managed by Aavishkaar. This transaction provides a full exit to AICL II, an early investor in Nepra. 

Aavishkaar continues to be invested in Nepra through its Aavishkaar Bharat Fund. BlueEarth has invested in Nepra through a structure that enables Aavishkaar to continue, and build on, its long-standing relationship with Nepra. 

Headquartered in Gujarat, Nepra has scaled significantly since its inception in 2011 and now operates a network of Material Recovery Facilities (MRF) and Value-Added Facilities (VAF) across four states in India. Its largest MRF in Indore has enabled the city to be ranked as the cleanest in India for six consecutive years. 

The company has delivered strong climate impact by mitigating 460 thousand tons of CO2e emissions through its waste recycling activities. Nepra has also had a positive social impact by working with 1,900+ waste pickers.

This investment addresses a clear climate challenge. Unprecedented levels of urbanization in India combined with a growing population have resulted in a significant increase in consumption, and subsequently, waste generation. Annual material consumption in India has increased from 1.2 bn tons (in 1970) and is expected to reach c.14 bn tons by 2030. This has led to a significant increase in waste generation.

This investment marks BlueEarth's first climate-focused Private Equity impact investment in India, and more broadly, in emerging markets. It aligns with the firm's thesis of partnering with market-leading companies that are delivering significant climate impact, including the creation of a circular economy.

Rohan Ghose, director of Private Equity Partnerships at BlueEarth, commented, “We believe that responsible waste management is not only vital for environmental stewardship but also presents a significant opportunity for economic growth and societal benefit. We also look forward to delivering value through our strategic collaboration with Aavishkaar Capital which underscores our commitment to fostering sustainable practices together with leading fund managers.” 

Switzerland-headquartered Blue Earth Capital is a specialist impact investor with operations in New York, London, and Konstanz. It seeks to address the world’s most pressing social and environmental challenges by delivering measurable impact alongside aiming for attractive and market-rate financial returns through dedicated private equity, private credit, and fund solutions.  

Anurag Agrawal, partner at Aavishkaar Capital, added, "BlueEarth’s investment is a testament to the company’s success in delivering significant outcomes in its ‘Zero Waste to Landfill’ motto, while creating meaningful impact to the numerous stakeholders to the dry waste management value chain. We look forward to working with BlueEarth in the next phase of Nepra’s growth trajectory.”

Aavishkaar Capital has invested in environmental and social impact enterprises across India, Emerging Asia, and Africa impacting over 130 million lives. Aligned to 13 out of the 17 Sustainable Development Goals, it has successfully raised eight funds, while generating commercial returns with over $ 555 million in assets under management. 

Sandeep Patel, CEO of Nepra, added, "Nepra has built a strong digital transformation tools and state of the art infrastructure to enable Inclusive Circular Economy and ‘Zero Waste to Landfill’ models. Along the journey, we have created positive climate outcomes, while also enhancing the lives of thousands of people, including waste-pickers. We are grateful to Aavishkaar Capital for consistently backing us since the beginning and look forward to BlueEarth’s support as we become the global leader in climate action.”

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