Arcadia, a climate crisis technology company, announced a $200 million funding round led by J.P. Morgan’s Sustainable Growth Equity Team. This is the first investment from the Sustainable Growth Equity Team, a late-stage venture and growth investment arm of J.P. Morgan Private Capital focused on high-growth companies making a positive impact on the climate.
The new funding will help Arcadia accelerate the impact of its data and API platform Arc, which helps companies monitor, report and take action on their carbon impact. With Arc, companies can get comprehensive utility data on energy-fueling tech innovations and find ways to cut costs and carbon emissions. Arcadia plans to expand the platform’s data coverage and develop new product offerings.
“The products being built on the Arc platform in just a short amount of time — by large incumbents and new startups — prove that companies have been starved of the tools they need to build innovative energy solutions. Building a platform that works across verticals instead of offering point solutions will unlock exponential growth and impact,” Arcadia CEO Kiran Bhatraju said in a statement. “Today’s commitment from J.P. Morgan will enable Arc to become the foundational software layer for the zero-carbon economy.”
J.P. Morgan isn’t the only company impressed with Arc’s potential. According to a statement from Arcadia, more than 100 companies including Ford, Enel X, Aurora Solar and STEM use the platform to deliver better energy experiences to their customers.
This funding round comes after a whirlwind of recent growth for Arcadia. Last year, the company experienced 155 percent year-over-year organic revenue growth and acquired Denver’s iSolar. The company also recently surpassed its 700MW of managed energy milestone and was recognized just last week as a Energy Finalist for Fast Company’s 2022 World-Changing Ideas Awards.
Arc isn’t the only product Arcadia offers. In addition to providing energy data and analytics, the company also gives homes and businesses access to community solar. Community solar energy systems allow multiple households and businesses to connect to a single solar panel farm and get solar energy through existing local power grids. While most users don’t get their energy entirely from solar, the concept does save money on energy bills as solar credits are applied to users’ accounts.
“Arcadia is pursuing one of the largest software opportunities in the clean energy transition,” J.P. Morgan Sustainable Growth Equity co-managing partner Tanya Barnes said in a statement. “The company’s technology platform plays a vital role in decarbonizing real estate, the grid and providing renewable energy access to underserved communities.”