SolarSquare Seeks Up to $60M in Funding as VC Interest Grows in India’s Rooftop Solar Market

SolarSquare, an Indian startup specializing in rooftop solar solutions, is reportedly nearing a new funding agreement following a notable investment in December 2024, according to TechCrunch.

B Capital and Lightspeed Venture Partners are anticipated to co-lead the Series C funding round, potentially valuing SolarSquare between $450 million and $500 million while infusing $55 million to $60 million in fresh capital, as per sources. This funding could more than double SolarSquare’s valuation in approximately 18 months, indicative of growing investor trust in India’s residential solar sector.

In its last funding event, Lightspeed Venture Partners spearheaded SolarSquare’s $40 million Series B round at a post-money valuation close to $200 million in December 2024. This current round is reportedly backed by its growth fund, which has previously invested in renowned firms like Razorpay, a prominent digital payment platform in India, and Zepto, recognized for its rapid delivery services.

Elevation Capital, an existing investor, is also likely to participate in discussions, which are in advanced phases and expected to reach a conclusion next month. The specifics of the deal may still change as financing details have yet to be finalized. So far, SolarSquare has secured $61.1 million in equity financing, based on data from startup tracking platform Tracxn.

India targets a renewable energy capacity of 500 gigawatts by 2030, with solar power projected to contribute more than half of that objective. By 2025, the country had become the third-largest solar power producer worldwide, following China and the U.S. Its total installed solar capacity grew from about 3 GW in 2014 to over 150 GW in 2026, primarily fueled by government incentives and subsidies promoting rooftop solar usage.

Founded in 2015 and based in Mumbai, SolarSquare aims to position itself as a comprehensive residential solar platform within a fragmented market that includes numerous small local installers and dealer networks associated with manufacturers such as Tata Power, Waaree Energies, Luminous Power Technologies, and Exide Industries. The startup designs, installs, and maintains rooftop solar systems for homes, housing societies (including apartment complexes and gated communities common in urban India), and businesses, having installed over 150 megawatts of solar capacity across 29 cities in nine states, as per its website.

Sources reveal that SolarSquare has energized nearly 50,000 homes and about 400 housing societies. The startup has also delivered rooftop solar systems for major corporations like Swiggy, Zepto, and iD Fresh Food.

Residential clients and housing societies now constitute the bulk of SolarSquare’s activities, as the company has been gradually pivoting away from less profitable industrial rooftop projects in recent years.

The startup has achieved an annualized revenue run rate exceeding ₹10 billion (around $104 million) from a mix of residential and housing society initiatives, according to a knowledgeable insider. Furthermore, the goal is to reach 200 megawatts in its residential solar portfolio this year, the source added.

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