Solartech Startup Aerem Raises $5 Mn To Offer End-To-End Solutions For Rooftop Solar Projects

Solartech startup Aerem has raised $5 Mn (~INR 41 Cr) in a Pre-Series A funding round led by climate-tech investor Avaana Capital. The round also saw follow-on participation from Blume Ventures and it includes debt financing of $1.5 Mn from financial institutions.

The Mumbai-headquartered startup will utilise the fresh capital to expand its suite of innovative solartech and financing solutions. It also wants to build an ecosystem that brings together all the stakeholders including financial institutions, engineering, procurement and construction (EPC) companies, and businesses (MSMEs) to enable end-to-end solutions for rooftop solar projects.

Founded in 2021 by Anand Jain, Aerem helps MSMEs to harness the power of solar energy and reduce their electricity costs by up to 70%. The startup uses its network of installers to set up rooftop solar systems.

It also offers loans through its in-house Non-Banking Financial Company (NBFC) and partner banks.

“The solar industry in India has been growing rapidly in recent years, driven by increased awareness of the benefits of renewable energy. India has set a target of ~300 GW of solar energy capacity by 2030, requiring both rooftop and utility-scale to fire. Aerem’s innovative solutions are well-positioned to capitalise on this trend and help accelerate the transition to a more sustainable future,” Jain said.

Last year, Aerem raised $2.5 Mn in its Pre-Series A funding led by Blume Ventures.

In January, another solar tech startup Loom Solar raised $2 Mn funding from US based Social Investment Managers and Advisors (SIMA) under the Energy Access Relief Fund (EARF) supported by the World Bank, DFC, BII, FMO, IFC and others.

In the last one year, many other cleantech startups such as SolarSquare raised $12 Mn, another startup EMotorad too secured $1.4 Mn funding, among others.

Reportedly, India’s climate finance requires nearly $1 Tn over the next decade to successfully work against climate change and achieve the goal of net zero by 2070.

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