Redaptive Raises $20 Million for Commercial Efficiency-as-a-Service Projects
Redaptive announced today it has secured a $20 million investment round led by CBRE, the world's largest commercial real estate services and investment firm. CBRE is joined by ENGIE New Ventures, the corporate venture capital arm of ENGIE, a leader in the energy transition, GXP Investments, the venture capital arm of Great Plains Energy Incorporated, and Linse Capital, a Silicon Valley-based growth capital firm.
With this investment, Redaptive aims to expand its product offerings and reach a larger market of commercial customers.
EaaS enables businesses to accelerate portfolio-wide efficiency upgrades that generate immediate utility savings, and customers only pay for verified avoided energy -- a stark contrast to the industry's legacy financing models. Given limited corporate investment dollars available for energy efficiency, Redaptive's EaaS provides its customers with upfront capital for retrofits, data transparency to validate project savings, and resources to execute multi-site roll-outs programmatically with minimal involvement from customer staff.
Redaptive generates positive free cash flow on day one, with a platform that acts as a foundation for future investments in both resource efficiency and smart building innovation.
"Redaptive addresses that black box status quo by bringing a deeper level of visibility into assets, empowering our customers to measure their energy assets as currency," said John Rhow, Redaptive Co-CEO.
"We are excited to continue to strengthen our platform as we break down the barriers to large-scale efficiency, transforming the way buildings consume energy, and collectively working toward a low-carbon society one saved kilowatt hour at a time," added Arvin Vohra, Co-CEO at Redaptive.
"Our top priority is to help our clients, and Redaptive provides an opportunity to save them money, be better stewards of the environment, and track their energy use at a deeper level, across their real estate portfolios," said Matt Werner, Global President, Facilities Management at CBRE. "Redaptive's energy solutions are unique and compelling, and we believe the team is ideally suited to bring Efficiency-as-a-Service swiftly to scale."
"Our partnership with Redaptive aligns with ENGIE's strategy to lead the energy revolution," said Hendrik Van Asbroeck, Managing Director of ENGIE New Ventures. "In the past, a lack of capital and uncertainty over savings has plagued the energy efficiency industry.
“Redaptive's EaaS offering removes these barriers and will help our clients move forward with energy efficiency projects quickly and with confidence. We are pleased to support the firm both financially and strategically to improve the energy performance of the world's buildings,” added Van Asbroeck
Redaptive has a proven record of working with customers, among them numerous Fortune 500 companies, such as McKesson and Aramark. To date, the company has secured around $200 million in aggregate contract value, generating approximately 423 million kWh of saved energy and is well positioned to expand within current customer portfolios and new customers across the industrial, manufacturing, retail, and healthcare sectors.
Redaptive accelerates investments in energy efficiency with a focus on returns directly benefiting customers by aligning their interests with their customers. By partnering with Redaptive, customers can upgrade large portions of their real estate portfolio through a streamlined contracting process, unlocking savings that immediately contribute to their bottom-line.
"Redaptive has been integral to the success of McKesson's energy management program over the last two years and a key strategic partner as we work to reduce our company's carbon footprint," said Michael Huaco, Senior Vice President of Global Real Estate at McKesson Corporation.
"Redaptive's unique model has enabled us to accelerate and scale our energy efficiency program, leading to real-time savings throughout our facilities,” concluded Huaco.