09 February,2023 02:41 PM IST | Mumbai | BrandMedia
The World Economic Forum estimates the need for more than USD 50 trillion in global investment by 2050 to achieve zero carbon emission target for the world. USD 5 trillion in annual capital investment needed by 2030. At the same time, corporations and institutions will need to rethink how they raise capital, invest and manage risk. This all has immediate implications for businesses. However these numbers create an additional opportunity for investment banking.
Identifying this opportunity in 2018, Rishi Vaidya setup his advisory business in Mumbai. With the background of investment banking and a passion for environment preservation; the new age entrepreneur put his skill sets to support his cause. Rishi has been successful in raising foreign debt and secure partnerships for sustainable projects in India. Talking about his venture Rishi says "Two decades ago investing in sustainability wasn't financially feasible, take example of electric cars which at the time were a concept. Thanks to the innovative financial modelling and progress in technology both are now a reality and a part of our daily lives. The need of the hour is to achieve scale, that's where we come in."
Unlike traditional investment banks or advisories; ARK capital does not charge any engagement fees. Their model is to partner the enterprise and work on a comprehensive strategy to bring financial feasibility through hybrid investment models. In return the boutique advisory owns a piece of the business and works towards creating value for all the stakeholders involved. However, Rishi claims it's not the remuneration model which sets them apart in the industry, it's the application of technology. "We constantly endeavour to explore and adopt new age technology. Our USP is our ability to identify trends in technologies that enable shift for corporates towards NetZero and then optimising those investment opportunities."
As of now the ARK Capital conducts advisory services, fund raising, M&A as well as debt restructuring for businesses in sustainability sector. However, their future plans entails coming up with fund to cater to the USD 10 Trillion demand of India's 2070 NetZero target.