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SolarSquare, one of India’s leading distributed solar asset operators, has raised $40 million (around Rs 338 crore) in a Series B funding round, marking one of the largest venture capital infusions in the Indian solar sector. The round was led by Lightspeed, with participation from Lightrock and existing investors Elevation Capital, Chris Sacca’s Lowercarbon, Nithin Kamath’s Rainmatter and Gruhas Proptech.
Established in 2015 in Mumbai as a solar EPC startup company, SolarSquare has evolved into a complete residential solar solutions brand. It offers end-to-end services, including design, installation, financing, permit facilitation and after-sales maintenance, eliminating the need for middlemen.
The company has served more than 20,000 households and more than 200 cooperative housing societies across India. The newly raised capital will be used to develop advanced asset management technology for remote monitoring and diagnosis of residential solar systems.
Shreya Mishra, CEO, SolarSquare, said: “So far, only 1% of households in India have adopted solar energy; We want to accelerate the adoption of solar energy by making it easier for families to switch to solar energy. And that is why we are the first company in India to offer rooftop solar with the promise of guaranteed savings, taking responsibility not only for the installation but also for the performance of solar energy thereafter.”
The recent infusion of $40 million will accelerate SolarSquare’s growth ambitions, which include expanding its operations to over 50 cities from its current presence of 20 cities. The company also plans to invest heavily in technology, talent and brand building, Mishra added.
Investing in climate technology startups is part of Lightspeed’s strategy to enable the transition to clean energy. Rahul Taneja, a partner at Lightspeed who led the fund’s investment in Solar Square, highlights India’s unique potential for clean energy innovation, offering venture capitalists both economic returns and environmental impact. Lightspeed’s investment in SolarSquare will fuel its expansion from 20 to 50 cities, expand technology and talent, and develop advanced asset management tools for remote solar monitoring and diagnostics, improving efficiency and customer satisfaction.
Mukul Arora, Partner at Elevation Capital, said: “Despite growing environmental awareness, adoption of solar energy remained complex for Indian households. Solar Square’s end-to-end approach to owning the entire customer experience has already set them apart and greatly simplified the solar adoption process. With supportive policies and increased consumer awareness, SolarSquare is well positioned to bring reliable and affordable solar energy to millions of Indian homes.”
Prior to this Series B round, SolarSquare had raised $19.5 million across three funding rounds. The company has an impressive list of angel investors, including Vidit Atrey and Sanjeev Barnwal of Meesho, Amit Agrawal, Saurabh Garg and Akhil Gupta of NoBroker, Ashish Goyal of UrbanLadder, Vijay Shekhar Sharma of Paytm, Nipun Sahni of Apollo Global and Harsh. Shah from GoFynd. Elluminate Capital acted as exclusive financial advisor for this transaction.
