At $4.5mn valuation, Netline raises Series-A funding, wants to produce solar panels locally

Intermarket Securities, a leading brokerage house, put a $4.5 million valuation for Netline, a family-owned business operating in Pakistan's energy and power sector, helping the company raise its Series-A funding. The amount raised was not disclosed.

Netline is one of the players providing power and energy solutions in Pakistan. It has offices in the UAE and USA as well. Over the next five years, the company plans to manufacture localised solar panels in Pakistan.

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“Pakistan ranks second, just behind Australia, in the Asia-Pacific region with regard to solar installation by the private sector,” said Netline Group Director Umair Zavary said while talking to journalists at the company’s office on Monday. “Due to this, Pakistan has experienced workforce in this area and other countries also recognise this which gives us the space to expand.”

He further added that the company would utilise the funds to expand operations to other countries.

The company also aims to manufacture solar panels in Pakistan that can produce 180 megawatts of renewable electricity. To fulfil this objective, the company has already acquired three acres of land in Islamabad.

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The company has also reached an agreement with a Turkish firm which will promote transfer of technology as part of the joint venture.

Another Group Director Uzair Zavary said the project will be completed in three phases.

"The investment during the first phase will be $3.5 million and is expected to be completed in the third and fourth quarter of 2023. Another $5 million will be spent in the second phase, which the company plans to raise through an initial public offering (IPO) in 2024.”

“Lastly, $20 million will be spent on a mining project in 2026, which will completely localise the solar panel production in Pakistan.”

He said that raw material for solar panels, mainly quartz, is abundantly available in Pakistan. Quartz glass is used in many facets of photovoltaic (PV) cell manufacturing in light sources, reaction chambers, and tools used in the production of solar cells, thin films and silicon wafers.

However, the materialisation of the plan will depend on how government policies are rolled out.

Currently, the industry is struggling to open Letters of Credit (LCs) amid dollar shortage in the country. Due to this, companies are unable to cater to high demand for clean energy installation.

Meanwhile, Iqbal Zavary, the founder and chairman of Netline, said that 2021 and 2022 were pivotal for his organisation as the company experienced high growth.

“Pakistan has a booming solar industry. It is also one of the reasons why businesses like Netline are achieving success,” he said.

“Energy demand is increasing by more than 9% annually in Pakistan – and it is projected that total energy demand will increase eight-fold by 2030, and 20-fold by 2050. Renewable energy sources, particularly solar power, present a sustainable solution to the widening energy demand and supply gap.”

Intermarket Securities CEO Wajid Hussain said, “Pakistan has an abundance of solar irradiance and receives solar energy virtually all year. When paired with international investment, this represents a fantastic chance to harvest solar energy from the most irradiated places in the country. The Pakistani solar energy market is expected to be spurred by supporting government policies and initiatives by well-developed businesses like Netline.”