TiE Delhi along with UBM India brings 10th Renewable Energy Expo -Showcase

Investment Memo

Consolidating, Enabling

the ‘Multi Billion Dollar Rooftop Solar Market in India’

19-08-2016Sunfund Renewable LLP www.sunfund.in [email protected]

Private & Confidential1

Summary• Rooftop solar is an attractive $36 Bn (40 GW) opportunity in India by 2022… and is at an inflection point for

rapid growth

• Our initial focus segment of Industrial/Commercial is worth over 50% of the market $19 Bn SAM

• Economics of solar viable sans subsidies and State governments are making regulatory environment very conducive

• Rooftop solar is still only 2% penetrated versus potential

• Fragmentation and unorganized market dynamics are hindering solar adoption in spite of

• Developers with committed funds… but seeking credible opportunities

• Willing customers… but confused and lacking trust

• Capable installers… but inhibited by costly customer discovery

• Huge gap in reliable Maintenance options - key to making Solar successful - $700 mn annual opportunity

• ‘Tech-enabled platform’ with ‘on-ground servicing capabilities’ is best positioned to scale strong indicators of product-market fit already in place

• Our marketplace-type platform model is financially attractive and builds defensible moats (driven by O&M service aggregation) around it as it scales

• Looking to raise $1.5 M for technology, nationwide scaling and org building



40GW (>US$36 bn) opportunity to be unlocked over next 5-7 years in Indian rooftop solar

525 725

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Rooftop Solar Targets (MW)

Rooftop Ground Mounted Cumulative Rooftop

Commercial

Industrial

Residential

Government

Rooftop by Sector – 23GW (60%) in Commercial & Industrial (target segment)

Sources: MNRE, Bridge to India

MW

Key drivers

Economic Viability sans Subsidies

Base energy consumption market shifting to solar as Roof owners

stand to earn $100,000/ 100 sq m of usable roof area over 25 years

in sun rich India

Strong Govt Resolve & Policies

Rooftop solar becoming mandatory, adoption being eased

and increased Renewable Purchase Obligations of Discoms

Multi Billion Dollar Investment Lineup for Financing rooftop solar

1.6 Bn investment by WB, ADB,NDB for loans; I Squared

capital infuses additional 300 Mnfor project development; and

many more

@US$900/kW, 40GW = US$36bn

740 MW of installedrooftop capacity; Over 640MW to be added in 2016



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Annual Rooftop O&M opportunity – C+I+R (USD mn)

Addressable market – $19 bn project dev till 2022 and $700 mn recurring O&M

185% CAGR

47% CAGR

GW

Annual O&M: ~$700 mn market by 2022

Sources: MNRE, Bridge to India

One-time project development ~$19 bn addressable till 2022

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Total Rooftop Government Residential C&I - installedand in

advancednegotiation

Commercial Industrial

Serviceable Addressable Market (project development) in GW

USD mn

21 GW

Addressable for O&M

Addressable for development

Maximum Viability in Commercial & Industrial



Pain Points at Every Stage Hindering Rate of Solar Adoption inspite of Ready, Willing and Able players

Limited understanding & access to:• Domain knowledge• Pricing & Financial options• Quality partners & EquipmentTrust Deficit

Inability to differentiateIll-informed customers = long sales cycle,prohibitive BD costs; limits expansion

Lack steady pipeline of bankable customers toinvest billions already raised

Highly Dependent on unorganized ‘brokers’ forover expansion across geographies

CUSTOMERS(Owns roof, consumes power, wants to save through Solar)

INSTALLERS(Engineering Procurement and

Construction of rooftop power plants)

DEVELOPERS(Build and own rooftop power plants,

sell cheap power to customers)

Project Discovery

Unsure about quality of installationand components used

Unable to get maximum savings dueto unavailability of quality O&Mservices

Cost of poor installation very high forreputation

Put onus of O&M on clients, as unable toserve multiple geographies – makesoffering less comprehensive/ hassle free

Quality of installation, often outsourced, criticalto generating RoI over plant lifetime

O&M of plant critical to generating RoI overplant lifetime. Need transparent, quality thirdparty O&M services as not core competence

Plant Commissioning

Post Commissioning19-08-2016

Sunfund Renewable LLP www.sunfund.in [email protected] Private & Confidential

5

Online Marketplace withControl Dashboards

+Local ‘on-ground’ O&M

Services that are auditable and data driven

Win-Win platform for all stakeholdersEasy process, full visibility/control, No trust deficit

How?1. Register2. Access project opportunities3. Access funding sources4. Sunfund QC protects reputation5. Process, O&M support from Sunfund

Build business, reputation – charge for quality

How? 1. Register2. View and quote for filtered project

opportunities with supporting technical and financial info, access to decision makers

3. Sunfund QC protects investment4. Tech driven O&M support by Sunfund

Expand and operate in multiple geographies with low BD, EPC, O&M costs

How?1. Register2. Sunfund Site Survey, Solar advisory3. Compare and Choose solar partners4. Sunfund QC for best results5. O&M and post support

Take an informed decision, lesser timeto go solar, transparency through tech

Demand Side Supply Side

Project Discovery

Plant Commissioning

Post Commissioning19-08-2016

Sunfund Renewable LLP www.sunfund.in [email protected] Private & Confidential

6

Sunfund brings Efficiency across the board in the

Solar ecosystem

8 out of 10 customers are Delighted to work with Sunfund and Go Solar with Confidence

September ‘16 bookings- 1 MW ofproject development (Rs 6 cr Value -Rs 18 lac revenue booking). 1 MW ofO&M takeover (Rs 7.5 lac annually)

Over 40 MWp (200 customers)opportunity engaged. Expectedconversion >5 MWp in current fiscal

Official Partner of FaridabadIndustries Association, HaryanaRenewable Energy Department

Comprehensive coverage of Faridabad Cluster

Demand Side Traction – FARIDABAD CLUSTER – Ground operations since April ‘16

“ This is exactly what I needed, I have 3 quotes from solarinstallers that I have not even bothered to open and readas I could not make head or tail of it” – MD, LNM Auto

“I am amazed at thecomprehensive end-to-end support providedby Sunfund. I’d be morethan happy to pay forsuch a service” – GM,Sterling Tools

“Every solar installer so far claims to be the best.Finally I will be able to see and compare whatthey are really offering.” – Chairman, KeselecSchreder Pvt Ltd



Top Developers, Installers have signed on to our Verified Customer Program to meet expansion goals

Installers with over 15% market shareare now our partners

Developers with over 60% market shareare now our partners. In talks for O&Mtakeover of existing plants

Supply Side Traction

Partner companies have validated acceptability of Engagement model, Fees, Quality of customers

and technical information

“I’d be delighted to quote to a 100 customers on the platformrather than cold call 20 customers to convert one deal”

“This space was waiting for a solution like this”

“O&M is my biggest pain – if you guys can make it goaway, we are in for a lot of business together”



Sunfund has the most comprehensive and compelling suite of offerings for our users

Features Sunfund Solarwaale Sunkalp Oorjan Indiagoessolar EnerMark Ezysolare

Site Survey

Customer Handholding

Technical Analysis

Financial analysis

Online Marketplace

User dashboards

PPA companies

EPC companies

Individual Investors

Debt Finance

O&M

Components

Analytics

End to End Guided Support & Services

Revenue ModelDeveloper/ Installer Commission; O&M

Subscription from solar installers

Subscription from solar installers,

Component sales

DSA commission from IDBI Bank on

loans

Lead forwarding to Installers

Energy Optimization,Investment

Management

Commission from vendors, component

manufacturers

19-08-2016 9

Business Plan OverviewP&L Metrics 2016-17 2017-18 2018-19 2019-20 2020-21

# Clusters 8 32 68 116 176

MW installed 7.8 86 223 420 674

Project Dev Cost (Rs cr) 46.8 515 1339 2520 4046

MW under O&M 16.7 168 525 1140 2069

Revenue (Rs cr)

Commission 1.4 15.5 40.2 75.6 121.4

O&M revenue 0.5 10.1 41.2 100.3 193.9

Total Revenue 1.9 25.6 81.4 175.9 315.3

Costs (Rs cr)

Variable (Direct + Indirect) 2.4 16.7 45.2 92.3 162.6

SG&A 1.7 9.3 17.6 27.1 38.4

EBITDA (Rs cr) -2.2 -1.2 16.3 51.8 106.1

EBITDA margin -117% -5% 20% 30% 34%20-08-2016 10

Investment ask: Rs 10 cr/USD 1.5 Mn for 15% equity - Meet venture needs for 18 months

Cluster expansion

Cluster Capital Expense Rs 1.8 cr

Cluster Activation & Marketing Rs 1.8 cr

Cluster Working Capital Rs 1.8 cr

Organization level costs

Tech + R&D Rs 1.2 cr

Marketing/Branding Rs 1.2 cr

Organization Building Rs 2.2 cr

Companies with similar models are successfully aggregating the solar

opportunity in other markets

US basedSolar financing marketplaceUSD 26.9 M funding

UK basedInvestor aggregatorUSD 4.5 M funding

US basedSolar installer marketplaceUSD 4M funding



Rs 20 lac invested by founders so far

Driven by Committed Team with Diverse Expertise and Strong Domain Experience

• Role – Cluster Ops, Customer Acquisition

• Previous – CEO of Greenso SolarTechnologies Pvt Ltd

• End to end BD & setup of 65 rooftop solarplants across 10 states;

• 7 years Solar experience

• Education – B Tech, Chemical Engg fromDeenbandhu Chhotu Ram University ofScience & Technology

Ankit Sheoran

Co-founder, COO

• Role – Product, Supply Side Partnerships

• Previous – Entrepreneur (Medulla SoftTechnologies) for 9 years

• Product/ Service Development and Govt BDin sustainable mobility

• Consultant, The Boston Consulting Group (2years)

• Education – B Tech (Computer Science &Engg), IIT Delhi

Rajiv Dinesh

Co-founder, CEO

• Role – Guiding Strategy and value creation

• Current – Partner at Bain & Co.

• Expertise in Strategy, CorporateDevelopment (M&A, JVs) and valuecreation for Principal investors, with over12 years of experience. Priorentrepreneurial experience

• Education – B Tech (Electrical Engg), IITDelhi; MBA from IIM, Ahmedabad

Madhur Singhal

Mentor



Thank you for your time!

Questions? Contact us:

[email protected]

Rajiv: +91 98100 31622

Ankit: +91 981 11 66 96 98

Non-Disclosure DisclaimerThis proposal contains proprietary and confidential information of the Authors, and shall not be used, disclosed or reproduced, in whole or inpart, for any purpose other than to evaluate this proposal, without the prior written consent of at least one of the Authors. The title, thedocument, and all information contained herein remains at all times the sole property of the Authors.

Authors: Rajiv Dinesh, Ankit Sheoran



mailto:[email protected]

TiE Delhi along with UBM India brings 10th Renewable Energy Expo -Showcase

Investor Relations

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