SolarSquare Seeks $60M in Funding Amid Rising Venture Capital Interest in India’s Rooftop Solar Market

SolarSquare, an Indian startup dedicated to rooftop solar solutions, is reportedly nearing the completion of a new funding agreement after a significant investment in December 2024, as mentioned by TechCrunch.

Sources indicate that B Capital and Lightspeed Venture Partners are likely to co-lead the Series C funding round, which could elevate SolarSquare’s valuation to approximately $450 million to $500 million, raising an additional $55 million to $60 million in new capital. This funding round is expected to more than double SolarSquare’s valuation within about 18 months, reflecting increasing investor confidence in India’s residential solar market.

During its last funding round, Lightspeed Venture Partners played a crucial role in SolarSquare’s $40 million Series B funding, resulting in a post-money valuation of close to $200 million by December 2024. The upcoming round will also tap into its growth fund, which has previously supported well-known companies such as Razorpay, a leading digital payment service in India, and Zepto, recognized for its quick delivery services.

Elevation Capital, a current investor, is expected to participate in the ongoing talks, which are reportedly at an advanced stage and likely to finalize next month. While financial specifics are still being worked out, details of the agreement may evolve. As of now, SolarSquare has raised $61.1 million in equity funding, as reported by Tracxn, a startup tracking platform.

India aims to achieve a renewable energy capacity of 500 gigawatts by 2030, with solar energy projected to contribute more than half of this target. By 2025, India became the third-largest global producer of solar power, following China and the U.S. The nation’s installed solar capacity skyrocketed from around 3 GW in 2014 to over 150 GW by 2026, primarily fueled by government incentives and subsidies promoting rooftop solar systems.

Founded in 2015 and based in Mumbai, SolarSquare seeks to position itself as a comprehensive residential solar platform in a market predominantly served by small local installers and dealer networks associated with manufacturers such as 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 typical in urban India), and businesses, having deployed over 150 megawatts of solar capacity across 29 cities in nine states, as noted on its website.

Reports suggest that SolarSquare has supplied electricity to nearly 50,000 homes and around 400 housing societies. The startup has also implemented rooftop solar solutions for major corporate clients, including Swiggy, Zepto, and iD Fresh Food.

Currently, the majority of SolarSquare’s operations focus on residential clients and housing societies, as the company continues its shift away from less profitable industrial rooftop projects in recent years.

The startup has announced an annualized revenue run rate surpassing ₹10 billion (approximately $104 million) from its combined residential and housing society projects, according to a reliable source. It also aims to increase its residential solar portfolio to 200 megawatts within this year, as disclosed by the source.

SolarSquare has chosen not to make any comments at this time. B Capital, Lightspeed Venture Partners, and Elevation Capital have not responded to requests for comments.