Yokogawa invest USD10 million in Ideation3X for integrated solid waste management in India

Bangalore (Karnataka) : Ideation3X Pte. Ltd. (i3X), a Singaporean venture company, has received a US$10 million Series B investment* from Yokogawa Electric Corporation (TOKYO: 6841) to develop a process that takes advantage of the circular economy and aims to serve the rapidly growing integrated solid waste management (ISWM) sector in India. A business partnership agreement has also been signed between the two firms. Yokogawa hopes to expand its operations in the lucrative Indian market by funding research and development in the rapidly expanding ISWM sector.

Since i3X’s inception in 2017, the Japanese private equity firm Unison Capital Group has been its primary financial backer. i3X has cutting-edge technology for creating high-quality alternative fuels from waste, among other things, making it an industry leader in the field of integrated solid waste management (ISWM). The backing of Unison Capital has also resulted in a positive assessment of the company’s ESG management, which has led to the awarding of waste treatment contracts in three Indian cities, including New Delhi.

The Modi government is promoting the Clean India Mission in an effort to better the environment in India’s major cities. It aims to establish a waste disposal model based on circular economy principles and hygienically treat all of the waste in the approximately 3,000 landfills across the country by 2030. There is a lot of interest in this initiative because of the potential for significant social impact and its significance in the fight against global warming. As it is implemented, it is predicted to increase demand for small-scale thermal power plants that generate electricity from alternative fuels and for conventional waste disposal facilities.

Yokogawa established a local subsidiary in the Indian market in 1987 and has since been delivering control systems for plants in the energy industry, monitoring systems for water supply and wastewater networks, and other industrial products and solutions. The company also has significant experience in providing control systems for waste-to-energy plants around the world. Through this investment in i3X, Yokogawa will be able to contribute to the formation of a circular economy based ISWM framework that is appropriate for the Indian market, and make full use of its measurement and control technologies to support the achievement of the Clean India Mission. While providing technical support for the development of i3X’s business, Yokogawa will also look to expand its engagement in this sector by undertaking the formation of a consortium with related organizations and companies.

Tsuyoshi Abe, a Yokogawa senior vice president and head of the Marketing Headquarters, commented, “Yokogawa has been investing strategically to develop business opportunities in the growing Indian market. This investment enables us to bring together Ideation3X’s knowhow, the ecosystem that will form around its business, and Yokogawa’s technology and experience. I feel confident that we will be able to expand our business while helping to address one of India’s most serious social issues. According to the United Nations and other sources, the world population continues to increase at a rate of 140 people per minute. In addition, the average life expectancy is getting longer, and we must be prepared for the increased burden on the global environmental as we approach the age of 10 billion people and 100-year lifespans. By utilizing our ability to measure and connect, we aim to fulfill our responsibilities for the future of our planet.”

An investment round following the Series A round for start-up companies. In contrast to Series A, which focuses on development of the product, the main objective of Series B is to develop a successful business.