Rayzon Solar, a Surat-based manufacturer of solar panels, has secured approximately INR 154 crore (USD 18 million) in its first external funding round. The move comes just ahead of its planned Initial Public Offering (IPO), signalling strategic preparation for a public listing.

Rayzon Solar pre-IPO around attracted nearly 90 investors. Among them: cricket legend Sachin Tendulkar, Harshadkumar Patel, and Divyang Patel. Harshadkumar led the round with an investment of INR 26.8 crore. Tendulkar and Divyang Patel each contributed INR 5 crore.

Breakdown of the Fundraise

Regulatory filings from the Registrar of Companies (RoC) confirm the board’s approval to issue 64,10,260 equity shares at INR 234 per share. That issuance raised INR 150 crore. The final round, however, reached INR 154 crore based on additional contributions. The capital infusion values Rayzon Solar at INR 7,207 crore (USD 844 million) on a post-money basis. The company is expected to file its Draft Red Herring Prospectus (DRHP) shortly, with a public listing anticipated in the coming months.

This funding round strengthens Rayzon’s balance sheet and positions it to capitalise on growing demand in the renewable energy sector.

Use of Funds and Growth Strategy

The proceeds from the funding round will be utilised to:

• Fuel business expansion and future growth plans
• Address short-term and long-term funding needs
• Support general corporate purposes

In tandem with the raise, Rayzon Solar has also launched a generous ESOP Plan 2025, comprising 1,00,00,000 employee stock options, valued at approximately INR 235 crore (USD 27.5 million). These stock options are set to convert into equity shares, signaling a strong push towards employee ownership and retention.

Company Overview and Expansion Plans

Founded in 2017 by Chirag Nakrani and Hardik Kothiya, Rayzon Solar operates on both B2B and B2C models, manufacturing high-efficiency solar photovoltaic (PV) modules for a wide customer base ranging from distributors and EPC companies to residential and commercial end-users. The company serves both domestic and international markets.

Rayzon has emerged as one of the most aggressive players in India’s burgeoning solar sector, not just in manufacturing but also in marketing—having recently marked its presence at the IPL. Rayzon Solar is the official renewable energy partner for both Gujarat Titans and Chennai Super Kings in the IPL 2025 season.

The company has expanded capacity rapidly—from a few hundred megawatts to over 7 GW, with plans to add another 5 GW by September 2025. Additionally, a 1.2 GW solar cell production line is expected by year-end, underscoring Rayzon’s vertical integration ambitions.

Rayzon Solar – Financial Snapshot

For the financial year ending 31 March 2024, Rayzon Solar reported:

• Operating Revenue: INR 1,273 crore
• Net Profit: INR 61 crore

These figures reflect solid profitability and operational scale, making it a compelling contender among India’s new-generation solar tech firms aiming for the capital markets.

Sector Context and Challenges Ahead

Rayzon’s growth comes amidst a broader solar manufacturing boom in India, fueled by government policies including:

• Import duties
• Non-tariff barriers
• Domestic content mandates (from June 2026)

These have significantly enhanced margins across the sector. Several players like Waaree Energies, Premier Energies, and Solarium have already tapped the markets recently, with over 10 firms listing in the past 12 months alone.

However, concerns over overcapacity loom large. While Chinese competition is subdued due to policy buffers, the reliance on Chinese components and spares persists. The upcoming PLI-backed entries from giants like Reliance and Adani are expected to add further capacity by late 2025, which could tilt the supply-demand balance.

Interestingly, Rayzon had earlier announced plans for a US manufacturing facility, which were eventually shelved due to uncertainty around IRA credits under former US President Donald Trump’s policy stance.

Final Word

Rayzon Solar pre-IPO fundraising, buoyed by brand ambassadors and strong investor confidence, positions it well for its forthcoming IPO. However, as the sector braces for both opportunities and structural headwinds, the solar rush could turn into a strategic minefield for unwary investors.