From ₹4 lakh to ₹100 crore: How El Sol Power Solutions is eyeing a mainboard IPO

What began with a modest capital of ₹4 lakh has today evolved into a ₹100 crore annual turnover solar power enterprise. The inspiring story of El Sol Power Solutions was detailed by its founder and managing director, Tinsu Mathew, at the Manorama Sampadyam Business Summit held in Kochi.

The idea for the business was sparked during Mathew's engineering college days, triggered by questions that arose during the construction of his brother's home. His initial study of lightning protection systems and setting up a rooftop solar unit at his own house served as the first stepping stones. Recognising the immense potential of the renewable energy sector, Mathew teamed up with his friend Libin to launch their solar venture.

Overcoming financial turmoil
The path to success was built against heavy odds. Coming from humble backgrounds—their parents worked as rubber tappers and daily wage labourers—the founders raised initial capital through personal loans from relatives and friends, supplemented by a ₹5 lakh loan under the PM Mudra Yojana. Although officially established in 2017, the business faced severe headwinds by early 2018, with mounting losses leading many to advise them to abandon the venture.

However, sheer determination and conviction kept them afloat. Supported by growing customer trust and positive word-of-mouth, the business turned profitable by the end of 2018.

Strategic transparency and market expansion
Mathew noted that while solar installations were initially costly, government subsidies and low-interest loans gradually made renewable energy accessible to common households. By advising clients that on-grid solar systems were far more cost-effective than battery-based setups, the company shifted its full focus to on-grid installations, winning widespread customer confidence.

With effective marketing strategies and cricketer Sanju Samson on board as brand ambassador, El Sol has successfully expanded its footprint across 25 Indian states and three international markets.

Setting sights on a mainboard IPO
Highlighting the vast headroom for growth, Mathew pointed out that out of Kerala's 1.5 crore potential residential and commercial power consumers, only around 4 lakh have installed solar systems so far. To capture this expanding market, the company is studying options to raise capital through private and public funds.

Based on financial positioning and expert consultancy advice, El Sol has decided to bypass an SME IPO and is preparing for a mainboard IPO launch within the next two to three years.