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

SolarSquare, an Indian startup specializing in rooftop solar solutions, is reportedly nearing a new funding deal following a substantial investment in December 2024, as reported by TechCrunch.

Sources suggest that B Capital and Lightspeed Venture Partners are set to co-lead the Series C funding round, potentially elevating SolarSquare’s valuation to between $450 million and $500 million while infusing $55 million to $60 million in new capital. This funding could more than double SolarSquare’s valuation in about 18 months, indicating a growing investor confidence in India’s residential solar sector.

In its last funding round, Lightspeed Venture Partners spearheaded SolarSquare’s $40 million Series B round, resulting in a post-money valuation near $200 million in December 2024. The current round is reportedly backed by its growth fund, which has a history of investments in prominent companies such as Razorpay, a leading digital payments platform in India, and Zepto, recognized for rapid delivery services.

Elevation Capital, a current investor, is also expected to participate in negotiations, which are in advanced stages and likely to wrap up next month. The exact terms of the deal may still change as financing details are yet to be finalized. So far, SolarSquare has amassed $61.1 million in equity funding, according to data from the startup tracking platform Tracxn.

India has set a target for renewable energy capacity of 500 gigawatts by 2030, with solar power projected to account for more than half of this objective. By 2025, India had emerged as the third-largest solar power producer globally, following China and the U.S. The country’s installed solar capacity surged from roughly 3 GW in 2014 to over 150 GW in 2026, primarily driven by government incentives and subsidies fostering rooftop solar adoption.

Established in 2015 and based in Mumbai, SolarSquare aims to be a complete residential solar platform within a fragmented market featuring numerous small local installers and dealer networks linked to manufacturers like Tata Power, Waaree Energies, Luminous Power Technologies, and Exide Industries. The startup specializes in the design, installation, and maintenance of rooftop solar systems for homes, housing societies (including apartment complexes and gated communities prevalent in urban India), and businesses, having deployed over 150 megawatts of solar capacity across 29 cities in nine states, according to its website.

According to sources, SolarSquare has powered nearly 50,000 homes and around 400 housing societies. The startup has also installed rooftop solar systems for major companies, including Swiggy, Zepto, and iD Fresh Food.

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

The startup has achieved an annualized revenue run rate exceeding ₹10 billion (approximately $104 million) from combined residential and housing society initiatives, according to an informed insider. Furthermore, the goal is to reach 200 megawatts in 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.