by Brianna Crandall — April 18, 2018 — Redaptive, a San Francisco, CA-based provider of commercial efficiency-as-a-service (EaaS), just announced it has secured a $20 million investment round led by global commercial real estate services and investment firm CBRE. 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.
Redaptive enables large-scale rapid deployment of energy efficiency technologies and delivers immediate returns and long-term value across customers’ real estate portfolios. The new company’s efficiency-as-a-service (EaaS) solution provides turnkey efficiency upgrades that include materials, installation and maintenance. Customers reportedly realize immediate utility bill savings and actual kWh savings are verified through Redaptive’s metering and building intelligence platform to determine a monthly avoided energy payment.
According to Redaptive, efficiency-as-a-service 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, says the company. 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 reportedly 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.
John Rhow, Redaptive co-CEO, stated:
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.
Arvin Vohra, co-CEO at Redaptive, added:
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.
Redaptive is said to have a proven record of working with customers, among them numerous Fortune 500 companies such as McKesson and Aramark. To date, the company has reportedly generated approximately 423 million kWh of saved energy through its contracts and is well positioned to expand within current customer portfolios and new customers across the industrial, manufacturing, retail, and healthcare sectors.
Matt Werner, global president, Facilities Management at CBRE, remarked:
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. 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.
Hendrik Van Asbroeck, managing director of ENGIE New Ventures, pointed out:
In the past, a lack of capital and uncertainty over savings has plagued the energy efficiency industry. Today, Redaptive’s EaaS offering is removing these barriers. Our partnership with Redaptive and its data offerings enables ENGIE clients to move forward with energy efficiency projects faster than on their own and with confidence. We are pleased to support the firm both financially and strategically to improve the energy performance of the world’s buildings.
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.
Michael Huaco, senior vice president of Global Real Estate at McKesson Corporation, concluded:
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. Redaptive’s unique model has enabled us to accelerate and scale our energy efficiency program, leading to real-time savings throughout our facilities.
For more information about the efficiency-as-a-service model, visit the Redaptive Web site.