Third Derivative selects 3 Indian startups to fund clean energy technologies

Third Derivative, a joint venture of Rocky Mountain Institute and New Energy Nexus, a global accelerator, has selected three Indian startups in its inaugural cohort of 50 companies to promote clean energy solutions to address the climate change.

The three Indian startups – two in shared and connected mobility space, and one in recycling plastics and plastic credits space — will be part of the $2 billion funding that the accelerator has arranged through nine venture capital firms across four different continents. It also has a support structure of nine multinational corporations including Microsoft, AT&T, Shell, BP and banks such as Wells Fargo.

Every startup has the option of $100,000 seed investment, which is immediately linked to follow-on capital of $2 billion accessed through a network of nine Venture Capital firms. Then there are nine corporations with an aggregate market cap of $3 trillion that provides the technology and related support. The accelerator is in conversation with multiple Indian conglomerates and expects many to join them in near future.

Jon Creyts, managing director, Rocky Mountain Institute told Financial Express that the three companies from India are representatives of three areas that India will lead the world in. One of them, LoadExx is the last-mile logistics company that uses fit-for-purpose light commercial vehicles fleets efficiently in East India, especially in Kolkata; the other startup, Three Wheel United, focuses on financing three-wheeled and two-wheeled vehicles ensuring that Tuk-Tuks become easily available and affordable by coupling financing with charging network and other infrastructure support. The third startup is around plastics and plastic recycling where India has championed many ideas and innovations.

“We have selected a company that is one of the first to look at plastic credits and how to become plastic neutral by managing our plastic footprints at the lowest cost. We expect many more such startups in coming months and have already started screening similar companies,” Creyts said.