SolarSquare Seeks to Raise Up to $60M Amid Growing Venture Capital Interest in India’s Rooftop Solar Industry

SolarSquare, an Indian startup specializing in rooftop solar solutions, is reportedly on the verge of finalizing a new funding deal after a notable investment in December 2024, as highlighted by TechCrunch.

According to insiders, B Capital and Lightspeed Venture Partners are set to co-lead the Series C funding round, which could elevate SolarSquare’s valuation to between $450 million and $500 million, while introducing $55 million to $60 million in fresh capital. This funding could potentially more than double SolarSquare’s valuation within approximately 18 months, showcasing growing investor confidence in India’s residential solar sector.

In the previous funding round, Lightspeed Venture Partners led SolarSquare’s $40 million Series B round, which resulted in a post-money valuation close to $200 million in December 2024. The current funding round is also reportedly supported by its growth fund, which is known for investments in key companies like Razorpay, a prominent digital payments provider in India, and Zepto, acclaimed for its rapid delivery services.

Elevation Capital, a current investor, is also expected to partake in discussions, which are reportedly at an advanced stage and anticipated to wrap up next month. The particulars of the deal may still change as financing details have yet to be finalized. To date, SolarSquare has raised $61.1 million in equity funding, according to startup tracking platform Tracxn.

India is targeting a renewable energy capacity of 500 gigawatts by 2030, with solar power projected to contribute more than half of this objective. By 2025, India became the third-largest solar power producer globally, trailing only China and the U.S. The nation’s installed solar capacity dramatically increased from about 3 GW in 2014 to over 150 GW by 2026, primarily driven by government incentives and subsidies promoting rooftop solar adoption.

Founded in 2015 and based in Mumbai, SolarSquare aims to be a comprehensive residential solar platform in a fragmented market characterized by numerous small local installers and dealer networks tied to manufacturers like Tata Power, Waaree Energies, Luminous Power Technologies, and Exide Industries. The startup focuses on designing, installing, and maintaining rooftop solar systems for homes, housing societies (including apartment complexes and gated communities typical in urban India), and businesses, having deployed over 150 megawatts of solar capacity across 29 cities in nine states, according to its website.

Sources indicate that SolarSquare has powered nearly 50,000 homes and about 400 housing societies. The startup has also provided rooftop solar solutions for major firms like Swiggy, Zepto, and iD Fresh Food.

Currently, residential clients and housing societies constitute the majority of SolarSquare’s operations, as the company has been gradually distancing itself from less profitable industrial rooftop projects in recent years.

The startup has surpassed an annualized revenue run rate of ₹10 billion (approximately $104 million) from its combined residential and housing society efforts, according to an informed source. Additionally, the objective is to achieve 200 megawatts within its residential solar portfolio this year, the source revealed.

SolarSquare has opted not to provide any comments. B Capital, Lightspeed Venture Partners, and Elevation Capital did not respond to requests for comments.