British International Investment

Chakr Innovation Private Limited

South AsiaManufacturing

Chakr is a cleantech startup based in India, focusing on developing technologies and commercialising products which address challenges related to environment and air pollution.

Our investment

Description of the investment.

Our funding will primarily support Chakr to develop alternate battery technologies for electric vehicles, as well as to expand its ‘Retrofit Emission Control Devices' business which reduces emissions associated with diesel generators by over 70 per cent.

Impact information

Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.

What?

Impact

Enable emissions reduction by using Chakr’s economical and energy dense technology for electrification of commercial vehicles (SDG 13).

How?

Primary Secondary

Our capital will help Chakr to further their research and development endeavours to improve the technology and processes to develop a prototype for commercial vehicles.

Our investment has the potential to catalyse the battery technology market by pioneering the development and commercialisation of a nascent stage battery technology.

Who?

Stakeholder Geography Characteristics
Planet

India

India's transport sector is highly reliant on two and three wheelers. These vehicles are mostly powered by fossil fuels and contribute about 20 per cent (54.8 million tonnes) of India's annual CO2 emissions from transport.

How much?

Scale Depth/Duration

Potential to save up to 54.8 million tonnes of CO2 equivalent emissions within the transport sector.

Depth: The company is developing a nascent technology that promises to be more economical and energy dense compared with traditional lithium-ion batteries. It’s use will primarily be in the transport sector and electrification of India’s two and three-wheeler commercial vehicles is likely to be a crucial enabler of the net-zero transition. That means the impact is likely to be deep and long lasting.

Contribution/additionality

Contribution/additionality

Financial additionality: Commercial capital is not available in sufficient quantity for Chakr to pursue its growth, so our participation is helping the company meet its target fundraise.

Risk

Execution Risk

Relates to the risk that the company is unable to develop or industralise the technology.

Efficiency Risk

Relates to the risk that the technology isn’t developed with efficient deployment of resources and costs.

Stakeholder Participation Risk

Relates to the risk of off-takers not being interested in the technology, or that they migrate to another emerging technology.

Impact score

Impact score (at point of investment)

The Impact Score is a tool to help us manage our performance against our strategic impact objectives. It is designed to incentivise investments that support our productive, sustainable, and inclusive objectives. You can find out more here.

The Impact Score is published for investments made from 2022 onwards. The Impact Scores are calculated at the point of investment. We publish the Impact Scores of new investments annually, once the information has been externally assured by an independent third party.

9

Environmental and social information

  • Environmental and social summary

    A high-level description of the environmental and social aspects of the investment. This may include a summary of key environmental and social risks identified during environmental and social due diligence (ESDD); key elements of an environmental and social action plan (ESAP); or ways in which we plan to support the investee improve environmental and social standards, such as through their environmental and social management system (ESMS); as well as any other priority areas agreed with the investee.

  • Environmental and social risk

    A risk category rating, which indicates the level of environmental and social risk associated with an investment. For an explanation of the categorisations used, see here. We consistently provide an environmental and social risk category for all investments screened from 2023 onwards.

Environmental and social summary

BII has agreed a comprehensive ESAP with Chakr from developing E&S policies, competencies management systems and good practice across their operations, with a focus on supply chain risks, anticipated obligations of extended producer responsibility and aspirations around life cycle assessment of their batteries.

Environmental and social risk

Medium-High

Reporting and Complaints Mechanism

The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to [email protected] or by mail. See more details on our Reporting and Complaints Mechanism here.

For any other general enquiries contact us at [email protected]

  • Key facts

    First published

    When the investment was first published on the website database.

    :
    March 2024
    Last updated

    When the last quarterly update of the website database occurred.

    :
    June 2024
    Project number

    An identifier number shared by investments in the same project.

    :
    D6038
    Status

    The current status of the investment (green flag for active and red flag for exited).

    :
    Active
    Region

    The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.

    :
    South Asia
    Country

    The countries where the investment delivers impact. Where impact is delivered in multiple countries, this is indicated.

    :
    India
    Sector

    We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.

    :
    Manufacturing

    We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.

    For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.

    For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.

    For direct equity investments, this is the date at which British International Investment exited the investment.

    For debt investments, this is the date at which the final debt repayment was made.

    For funds, this is the date at which the fund was terminated.

    For underlying fund investments, this is the date at which the fund manager exited the investment.

    The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.

    For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.

    The currency in which the investment was made.

    Investment type :
    Debt
    Start date :
    December 2023
    Amount :
    $6.58m
    Currency of investment :
    INR
    Domicile

    The company or investment fund’s place of incorporation.

    :
    India
    Climate finance

    Indicates whether the investment is climate finance qualified or partially climate finance qualified and the type of climate finance (adaptation, mitigation or both). We define climate finance using the multilateral development bank (MDB) and the International Development Finance Club (IDFC) Common Principles climate finance methodology. See Common Principles for Climate Mitigation Finance Tracking and Common Principles for Climate Change Adaptation Finance Tracking. We provide the climate finance qualification and type for commitments from 2020 onwards, which is when we launched our Climate Change Strategy.

    :
    Partially qualified
    Climate finance type:
    Mitigation
    2X Gender Finance

    Indicates whether the investment is ‘2X qualified’ using the 2X Challenge criteria. You can find out more here. It only applies to investments made from 2018 onwards, when the 2X Challenge was first launched.

    :
    Fully qualified

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