SolarSquare raises $40M in one of India’s largest solar venture capital deals, Lightspeed leads round

SolarSquare, one of India’s leading distributed solar assets, 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.

Founded in 2015 in Mumbai as a solar EPC company, SolarSquare has evolved into a full-service residential solar solutions brand. It offers comprehensive services, including design, installation, financing, permit facilitation and after-sales maintenance, eliminating the need for intermediaries.

The company has catered to the needs of over 20 lakh homes and over 200 cooperative housing societies across India. The newly raised capital will be deployed to develop an advanced asset management technology suite for remote monitoring and diagnostics of residential solar systems.

Shreya Mishra, CEO, SolarSquare said, “Only 1% of homes in India have adopted solar energy so far – we want to accelerate solar adoption by making it easier for families to switch to solar. That’s why we are the first company in India to offer solar energy on Rooftops with the promise of guaranteed savings, taking responsibility not only for the installation but also for the solar performance afterwards.

The latest $40 million injection will accelerate SolarSquare’s growth ambitions, which include expanding operations to more than 50 cities from its current footprint 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 clean energy transition. Rahul Taneja, partner at Lightspeed who led the fund’s investment in Solar Square, highlights India’s unique potential for clean energy innovation, providing venture capital with economic returns and environmental impact. Lightspeed’s investment in SolarSquare will fuel its expansion from 20 to 50 cities, scale technology and talent, develop advanced asset management tools to remotely monitor and diagnose solar energy, and enhance efficiency and customer satisfaction.

“Despite growing environmental awareness, solar adoption has remained a complex issue for Indian households,” said Mukul Arora, partner, Elevation Capital. “Solar Square’s entire approach to owning the entire customer experience has really set it apart and made the energy adoption process easier.” Solar is simpler Through supportive policies and increased consumer awareness, SolarSquare is well positioned to provide 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 boasts an impressive list of angel investors, including Vidit Atrey and Sanjeev Barnwal of Meesho, Amit Agrawal, Saurabh Garg, Akhil Gupta of NoBroker, Ashish Goyal of UrbanLadder, Vijay Shekhar Sharma of Paytm, Nipun Sahni of Apollo Global, and Harsh. Shah Govind. Elluminate Capital served as the exclusive financial advisor for this transaction.