Rooftop solar startup SolarSquare has raised $40 million in a Series B funding round, solidifying its position in India’s cleantech sector by delivering innovative solar energy solutions for residential solar customers nationwide.
The round, led by Lightspeed, saw participation from Lightrock, Elevation Capital, Chris Sacca’s Lowercarbon, Nithin Kamath’s Rainmatter, and Gruhas Proptech. This infusion of funds is the largest venture capital raise in India’s residential solar market, signaling growing investor confidence in sustainable energy solutions.
SolarSquare will use the funding to expand its operations to 50 cities, enhance its technology stack, double its workforce, and invest heavily in brand-building. With these ambitious goals, the startup aims to make rooftop solar systems more accessible and reliable for households and housing societies across India.
“With this round of funding, our first prerogative is to expand to 50 cities, up from 20 cities currently. We will also invest heavily in technology, talent, and branding,” said Shreya Mishra, CEO of SolarSquare.
Comprehensive Solar Solutions for Homes and Societies
Founded in 2015 by Neeraj Jain, Nikhil Nahar, and Shreya Jain, SolarSquare offers full-stack rooftop solar solutions. The company provides end-to-end services, including system design, installation, government permits, financing, and post-installation maintenance. Since its inception, SolarSquare has transformed over 20,000 homes and more than 200 cooperative housing societies into clean energy hubs.
The startup further expanded its capabilities in February 2024 by acquiring PV Diagnostics, a company specializing in utility-scale solar power. This move highlights SolarSquare’s commitment to innovation and quality in solar energy solutions.
“Solar Square’s full-stack approach of owning the entire customer experience has already set them apart and simplified the solar adoption process. With supportive policies and rising consumer awareness, SolarSquare is well-positioned to bring reliable, affordable solar energy to millions of Indian homes,” said Mukul Arora, Partner at Elevation Capital.
Why SolarSquare Is Capturing Investor Interest
According to co-founder Shreya Jain, the cleantech sector, including rooftop solar, electric vehicles, and battery manufacturing, attracts more investments due to its relatively low R&D costs and shorter payback periods.
“Residential solar offers a unique opportunity to build a direct-to-consumer (D2C) brand. We’re proud to be India’s number one rooftop solar startup, with a proven track record of success over the last four years,” Jain said.
SolarSquare’s plans include building a state-of-the-art asset management platform for remote monitoring and diagnostics of residential solar systems, ensuring long-term efficiency and customer satisfaction.
Solar startups in India have faced limited funding in recent years, but SolarSquare’s success is part of a broader revival. Competitors like Zunroof, Mysun, and Freyr Energy have also secured notable funding rounds, such as Glow’s $30 million and InSolare’s $8 million. SolarSquare’s ability to attract marquee investors, including Meesho’s Vidit Atrey, Paytm’s Vijay Shekhar Sharma, and NoBroker’s Amit Agrawal, underscores its leadership in the sector.
Financial Growth and Future Prospects
SolarSquare has demonstrated remarkable financial growth, with revenue rising from Rs 81 crore in FY22 to Rs 107 crore in FY23. The startup closed FY24 with Rs 170 crore in revenue and aims to double this figure in FY25. Although the company posted a Rs 35 crore loss in FY23, it is optimistic about achieving profitability as it scales.
SolarSquare plans to double its workforce of 800 employees by the next financial year to support its expansion. The hiring will focus on sales, customer service, and operations, ensuring robust support for its growing customer base.
SolarSquare is investing heavily in technology to enhance the performance and reliability of its rooftop solar systems. Its upcoming asset management platform will enable remote monitoring and diagnostics, reducing downtime and maximizing energy efficiency for customers.
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