SolarSquare Nets $4.2 Mn To Scale Up Its Solar Tech Portfolio

SUMMARY

As a part of this round, Lowercarbon, Good Capital, Gruhas Proptech and Zerodha Technology invested INR 20.74, 3.32 Cr, INR 6.22 Cr and INR 3.98 Cr, respectively in the company

The regulatory filing revealed that the board passed a special resolution to allot 7,589 Series B compulsory convertible debentures at an issue price of INR 46, 710

The fresh capital will be utilised towards the company’s expansion. It will also cater to the company’s working capital requirements and general corporate purposes

Rooftop solar solutions startup SolarSquare has secured $4.2 Mn (around INR 35 Cr) in a fresh funding from Zerodha Technology, Abhijeet Pai and Nikhil Kamath’s Gruhas Proptech, Lowercarbon Capital and Good Capital.

As per the startup’s regulatory filings, Lowercarbon, Good Capital, Gruhas Proptech and Zerodha Technology invested INR 20.74, INR 3.32 Cr, INR 6.22 Cr and INR 3.98 Cr, respectively.

The development was first reported by Entrackr.

The fresh capital will be utilised towards the company’s expansion. It will also cater to the company’s working capital requirements and general corporate purposes.

The regulatory filings revealed that the startup’s board passed a special resolution to allot 7,589 Series B compulsory convertible debentures at an issue price of INR 46, 710.

As per the filings, each debenture issued during this round will convert into a preference share during the next qualified funding round, with investors eyeing a valuation of $75 Mn.

It is pertinent to note that the resolution to raise the capital was passed by the company’s shareholders on March 15, 2024.

Founded in 2015 by Neeraj Jain and Nikhil Nahar, SolarSquare Energy, is a full-stack rooftop solar solutions startup. These solutions include designing, installing, and financing rooftop solar systems for homes, housing societies and commercial establishments.

Despite registering a fourfold increase in net losses, from INR 8 crore in FY22 to INR 30 crore in FY23, the company’s revenue from operations surged to INR 107 crore from INR 81 crore in FY22.

The company has raised a total funding of $16.05 Mn to date. It raised INR 100 Cr ($12.08 Mn) as part of its Series A funding round led by Elevation Capital and US-based climate-focused fund, Lowercarbon Capital.

Earlier this year, it acquired PV Diagnostics a consultancy solutions provider in the solar industry.

The company competes against the likes of Zunroof, Cleantech, Mysun, Oorjan, and Freyr Energy among others in the solar solution provider sector.

The funding comes at a time when the cleantech sector is gaining attraction from investors.

Last month, cleantech startup GPS Renewables raised $50 Mn (about INR 410 Cr) in a debt financing round from a clutch of banks and non-banking financial companies (NBFCs).

In March, Sprih raised a seed funding of $3 Mn (about INR 25 Cr) led by Leo Capital, with participation from entrepreneurs and climate experts globally.