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

SolarSquare, an Indian startup dedicated to rooftop solar energy solutions, is nearing the completion of a new funding deal following a substantial investment in December 2024, as highlighted by TechCrunch.

According to sources, B Capital and Lightspeed Venture Partners are set to co-lead the Series C funding round, potentially raising SolarSquare’s valuation to approximately $450 million to $500 million and attracting an additional $55 million to $60 million in new investments. This funding round could more than double SolarSquare’s valuation in about 18 months, showcasing increasing investor confidence in India’s residential solar market.

In its previous funding round, Lightspeed Venture Partners played a pivotal role in SolarSquare’s $40 million Series B raise, resulting in a post-money valuation of nearly $200 million by December 2024. The upcoming round will also draw from its growth fund, which has previously supported well-known firms such as Razorpay, a leader in digital payment solutions in India, and Zepto, recognized for its quick delivery services.

Elevation Capital, a current investor, is expected to join in the ongoing discussions, which are reportedly at an advanced stage and anticipated to conclude next month. Although financial specifics are still being ironed out, the details of the agreement may change. So far, SolarSquare has successfully secured $61.1 million in equity funding, according to Tracxn, a startup tracking platform.

India aims to reach a renewable energy capacity of 500 gigawatts by 2030, with solar expected to comprise over half of this target. By 2025, India emerged as the third-largest global producer of solar energy, following China and the U.S. The nation’s installed solar capacity skyrocketed from roughly 3 GW in 2014 to over 150 GW by 2026, largely fueled by government incentives and subsidies that encourage rooftop solar installations.

Founded in 2015 and based in Mumbai, SolarSquare intends to position itself as a leading residential solar platform in a landscape dominated by small local installers and dealer networks associated with 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 common in urban India), and businesses, having deployed over 150 megawatts of solar capacity across 29 cities in nine states, as mentioned on its website.

Reports indicate 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.

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

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

SolarSquare has opted not to provide any comments at this time. Requests for comments from B Capital, Lightspeed Venture Partners, and Elevation Capital have gone unanswered.