Organica Water ("The Company"), a global provider of innovative solutions for the treatment and recycling of wastewater, today announced that it recently completed its $21 million Series D financing, with a second tranche to follow. This financing represents the largest private equity round raised by the Company to date. The round was led by CITIC Capital Silk Road Fund ("CCSRF") with substantial participation by existing investors.
Over the past two decades Organica has developed a truly unique "localized" approach to wastewater treatment. Organica's 100 + wastewater treatment facilities around the globe utilize a waste processing biofilm on natural (plant) and/or engineered (patented biofiber media) root structures, all housed in a fully-enclosed, odorless, greenhouse facility. The result is a cost-efficient solution which offers a significantly reduced physical footprint, and lower operational and infrastructure costs when compared to conventional wastewater treatment options, all in the form of a pleasant botanical garden-like environment that preserves land value and enables cost-efficient reuse of the treated effluent.
"This is a critical milestone in Organica's journey to become the standard operating system for municipal wastewater treatment in the 21st century," said Ari Raivetz, Chief Executive Officer of Organica Water. "This investment provides the capital necessary to strengthen our balance sheet, better positioning us to deliver our unique wastewater solutions in larger and more complex projects in Asia. It also provides for further investment in our online design platform and digital toolset, which add value for water engineers and operators, and also integrate other wastewater technologies and equipment. Over the past few years the wastewater market is moving to a more decentralized approach, similar to what we have seen in the power sector. Organica leads the way in this segment, with large scale references in major urban centers like Shanghai, Shenzhen, Manila, Jakarta, Kolkata, and Budapest."
The round was led by CCSRF under CITIC Capital Holdings Limited ("CITIC Capital"), an alternative investment management and advisory company with deep knowledge and network of the Chinese business and financial markets and world-class investment expertise. Substantial participation in the round came from one of Organica's existing investors, Paris-based Idinvest Partners through its Electranova Capital I Fund. Idinvest is a European leader in private equity with a strong VC practice and specific expertise in the Chinese market.
"We are thrilled to add CCSRF to our already strong and global team of investors," said Raivetz. CITIC Capital has deep understanding of the China market, one of the most important growth markets for Organica. "The aim of CCSRF is to invest in companies commercializing their business along the 'Silk Road', which covers much of SE Asia and MENA, two regions where Organica is quite active. In addition, Idinvest's substantial participation will ensure continued utilization of their expertise in bringing European businesses into China and their extensive network in that market."
"Organica's rapid adoption in China, India and South-East Asia is a strong signal that its small-footprint, attractive and odor-free wastewater treatment systems are ideally suited to the needs of emerging and emerged economies where new stations often need to be built within cities," said Julien Mialaret, Operating Partner of Idinvest. "We are excited to support the team as it continues to lead the way in Asia with its novel approach and become the de facto solution for energy-efficient, "localized" wastewater treatment."
CCSRF joins Organica's existing investors: Idinvest Partners, IFC, Gamma Capital Partners, WLR China Energy Infrastructure Fund and RNK Capital LLC.
Since its founding in 1998 as a Hungarian EPC Contractor, and its transformation to a global solutions provider via a Series A financing in late 2008, Organica has worked to bring its sustainable wastewater treatment solutions to cities and communities around the world. Through its Organica Food Chain Reactor (FCR) solution, the company has become the leader in "localized" wastewater treatment, with nearly 100 references around the world. Each Organica FCR is housed in a fully-enclosed odorless greenhouse facility with the appearance of a botanical garden, preserving the surrounding land value and allowing the wastewater treatment plant to be placed in the middle of the city, thereby greatly reducing infrastructure costs and enabling cost-efficient reuse of the treated effluent. Organica has offices in Princeton, NJ (USA), Budapest (Hungary), New Delhi (India), Shanghai (China) and Jakarta (Indonesia).
CITIC Capital Silk Road Fund ("CCSRF") is a pan-Eurasian themed fund managed by CITIC Capital Holdings Limited with a focus on industries covering energy & resource efficiency, water safety, agriculture & food technology, and transport & logistics service that are related to utilities & infrastructure. As a leading player in the Central Asia region since 2010, CCSRF is now targeting broader markets in Southeast Asia, Central & Eastern Europe, as well as CIS region. The fund is sponsored by CITIC Group as a cornerstone investor, one of the largest state-owned multinational conglomerate. CITIC Group ranks 172 nd on Fortune Global 500 in 2017.
Founded in 2002, CITIC Capital Holdings Limited ("CITIC Capital") is an alternative investment management and advisory company. The firm manages over USD22 billion of capital across 100 funds and investment products through its multiple asset class platform covering private equity, real estate, structured investment & finance, and asset management. CITIC Capital has over 150 portfolio companies that span 11 sectors and employ over 820,000 people around the world.
Idinvest Partners works with entrepreneurs in new energy, smart cities and environmental technologies and helps them accelerate the growth of their companies to reach markets worldwide. With offices in Paris, Frankfurt and Shanghai and over €9 billion assets under management, Idinvest Partners is one of the most active global technology investors today.
Idinvest has supported over 180 high-tech companies with strong growth potential and has specific expertise in information technologies (internet/media, software, telecommunications), smart cities (mobility, new energy and environmental technologies) and healthcare (biopharmaceuticals, diagnostics and medical instruments).