From delay to delivery: How Odyssey supply chain credit expedited a 6 MW solar project in India

Background
A reputable mid-sized solar EPC in India, with a decade of experience and over 750 MW of renewable energy projects installed globally, had an opportunity to deliver a 6 MW commercial installation. The EPC is well-known in the industry for providing customized, integrated solar solutions across various business models (CAPEX, OPEX/RESCO), including comprehensive operations and maintenance OEM services.

The challenge
Despite a strong industry reputation and access to institutional financing, including a Rs 30 crore credit line from a non-bank financing institution (NBFI), the EPC faced significant working capital constraints. 

• Traditional institutional lending involved complicated documentation, extensive compliance, and security creation requirements, resulting in slower disbursements.
• Existing procurement credit limits with supply chain partners and banking facilities were insufficient to quickly mobilize additional working capital for larger projects.

When presented with this opportunity, a high-value commercial installation for a publicly listed corporate customer with a market capitalization of approximately $400 million, the EPC struggled to enhance their working capital facilities. Accepting the project without immediate liquidity was risky, as upfront procurement of solar modules required significant cash flow. EPCs typically either demand large customer advances or decline projects outright due to liquidity risks, which often results in lost opportunities. 

Odyssey’s solution
Recognizing the EPC’s challenge, Odyssey provided a timely, flexible solution through its innovative procurement and finance platform, directly addressing the EPC’s liquidity needs:

• Fast, embedded supply chain credit: Odyssey quickly approved an Rs 8 crore equipment credit line specifically for procuring solar modules required for this project. Rather than traditional collateral, this credit was embedded directly into the EPC’s project receivables, aligning repayment terms with project cash flows.
• Upfront payment and improved negotiation: Odyssey’s supply chain credit allowed the EPC to offer 100% upfront payment to suppliers, securing optimal pricing for high-quality domestic solar modules. This enabled significant cost savings, directly boosting the EPC’s profitability.
• Streamlined digital platform: Odyssey’s platform simplified the entire financing and procurement process, reducing turnaround time from weeks (typical of traditional banks or institutional loans) to just days. This quick turnaround allowed immediate equipment ordering, accelerating the project timeline.
• Cash flow-aligned repayment structure: Odyssey structured the payments to match project milestones and expected payments from the end-customer. This removed the liquidity strain that typically accompanies upfront equipment purchases, freeing the EPC to execute without financial stress.

Execution and outcome
With Odyssey’s embedded supply chain credit, the EPC accelerated project execution, completing installation ahead of schedule. This timely execution not only satisfied the end-customer’s tight deadlines but also enabled the EPC to recognize revenue promptly within the targeted financial quarter, achieving revenue targets that otherwise would have slipped into future periods.

Cost reductions from upfront supplier payments significantly improved project economics, positively impacting the EPC’s bottom line. Odyssey’s support allowed the EPC to execute quickly and maintain healthy cash flow. 

Broader impact and market validation
This success story exemplifies Odyssey’s broader value proposition to the Commercial & Industrial (C&I) solar EPC market in India. EPCs regularly face working capital bottlenecks, even with institutional financing options available, due to lengthy approval processes, cumbersome compliance requirements, and slow loan disbursements.

Odyssey addresses this critical gap with rapid, flexible, and embedded procurement financing that EPCs can access precisely when needed. As industrial and commercial customers increasingly adopt renewable energy to meet sustainability targets, fast project execution becomes essential. EPC players who can swiftly mobilize working capital, procure equipment rapidly, and execute projects efficiently have a competitive advantage.

For this particular EPC, Odyssey’s support was transformative. With proven access to quick credit, the EPC is now pursuing and winning similar-sized or larger projects, committing to faster timelines and expanding its business reach.

Key takeaway
Odyssey’s procurement and finance platform empowered a well-established EPC to undertake a large-scale project that typically would have been financially unfeasible without large customer advances. Odyssey’s fast, embedded credit facilitated upfront supplier payments, secured significant equipment cost reductions, enhanced project profitability, and bolstered the EPC’s competitive advantage. This approach highlights how innovative supply chain credit can significantly unlock growth opportunities and drive profitability for EPCs in India.

Interested by Odyssey supply chain credit?