Switzerland-headquartered Blue Earth Capital has acquired a significant minority stake in Nepra Resource Management from an investment vehicle owned by Indian impact investor Aavishkaar Capital.
While the transaction provides a full exit to Aavishkaar India II Company Limited, the Indian venture capitalist continues to be invested in the dry waste management company through its Aavishkaar Bharat Fund.
Blue Earth has invested in Nepra through a structure that enables Aavishkaar to continue, per a statement.
Nepra, established in Gujarat in 2011, now operates a network of material recovery facilities (MRF) and value-added facilities (VAF) across four states in India.
The company claims to have worked with over 1,900 waste pickers and mitigated 460,000 tonnes of CO2 emissions through its waste-recycling activities.
The investment marks Blue Earth’s first climate-focused private equity investment in India, and more broadly, in emerging markets.
“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,” said Rohan Ghose, Director of Private Equity Partnerships at Blue Earth.
“Nepra … has built very strong digital transformation tools and state-of-the-art infrastructure to enable Inclusive Circular Economy and ‘Zero Waste to Landfill’ models,” said Sandeep Patel, CEO of Nepra,
This investment addresses a clear climate challenge in the country. Unprecedented levels of urbanisation in India combined with a growing population have resulted in a significant increase in consumption, and subsequently, waste generation.
According to a statement issued by Blue Earth Capital, annual material consumption in India is expected to reach 14 billion tonnes by 2030 from 1.2 billion tonnes in 1970.