Pyse, a social-impact investment platform, has launched India’s first fractionally owned solar power plant in Karnataka. The solar power plant is being built with an investment of INR26 crore and an average investor ticket size of INR25,000.
The term ‘fractional ownership’ refers to a financial agreement that enables a group of investors to pool their funds to purchase a high-value asset. This passive ownership approach reduces the financial burden on a single investor to own a large property.
This fractionally-owned solar power project has been divided into four tranches with the first three tranches worth INR16 crore. These tranches were oversubscribed by 2.5x and the money was raised on an average of three days. The project is backed by around 600 retail investors and PYSE will launch the final tranche with a minimum investment of INR500,000.
This solar power plant is set to be commissioned by August 2022 and is equipped to supply solar power to marquee clients operating manufacturing plants. It is designed to offset 65 lakh kgs of carbon footprint every year for the next twenty-five years.
Pyse claims to be India’s first web-based investment platform that helps retail investors put their money into sustainable projects that create social and environmental impacts. Pyse allows retail investors to own fractions of green and clean projects, with investments starting at Rs 5,000,
Commenting on the launch of the solar project, Kaustubh Padakannaya, Co-founder, Pyse said: “The robust response from our investors has solidified our faith in solar power as an asset class that has the potential to earn steady returns while contributing to the environment. This project showcases our commitment to making green assets a lucrative financial product for retail investors and is a step towards our partner companies’ sustainability goals”.