SolarSquare’s Valuation Likely To Triple With Fresh Funding

Months after raising $4.2 Mn from marquee investors such as Zerodha Technology and Nikhil Kamath’s Gruhas Proptech, rooftop solar solutions startup SolarSquare is looking to raise another $30 Mn (INR 253.1 Cr) in a fresh funding round.

The Mumbai-based startup is in advanced talks  for the round to be led by Lightspeed Venture Partners, Mint reported, citing sources.

The round, set to be completed by next month, would likely value the startup at $130 Mn — a 2.7X jump from its previous valuation of $47.7 Mn, as per the report.

Inc42 has reached out to Shreya Mishra, cofounder and CEO of SolarSquare, for comments on the development. The story will be updated based on the response.

SolarSquare reportedly aims to use the fresh capital to scale its business and meet its capex needs.

Founded in 2015 by Neeraj Jain, Nikhil Nahar and Shreya Mishra, SolarSquare Energy initially commenced operations with B2B rooftop solar solutions but later transitioned to the B2C segment in 2021.

The company offers a full-stack of rooftop solar solutions, including designing, installing, and financing rooftop solar systems for homes, housing societies and commercial establishments.

SolarSquare’s primary competitors in the solar solution provider sector include Zunroof, Cleantech, Mysun, Oorjan, Freyr Energy, among others.

According to Inc42 data, SolarSquare has raised over $20.25 Mn in funding till date.

In May, the company raised $4.2 Mn from Zerodha Technology, Abhijeet Pai and Nikhil Kamath’s Gruhas Proptech, Lowercarbon Capital and Good Capital. 

Prior that, in 2022, 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.

It is to be noted that SolarSquare saw its net losses ballooning 275% to INR 30 Cr in the financial year 2022-23 (FY23) from INR 8 Cr in the previous year. However, its operating revenue zoomed 32% to INR 107 Cr during the year under review from INR 81 Cr in FY22.

The potential investment by Lightspeed in SolarSquare comes at a time when homegrown cleantech space is witnessing a boom, fueled by the growing demand and adoption of green energy products. 

More than a dozen cleantech and climate tech-focussed funds were launched last year in the country. 

Over the past few years or so, cleantech startups in India have also captured significant investor interest. For instance, GPS Renewables raised $50 Mn in a debt financing round from a clutch of banks and non-banking financial companies (NBFCs) in April.

In March, Sprih secured $3 Mn in a seed funding round led by Leo Capital, with participation from entrepreneurs and climate experts globally.