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

SolarSquare, an Indian startup dedicated to rooftop solar energy solutions, is on the verge of completing a new funding deal after receiving a substantial investment in December 2024, as reported by TechCrunch.

Sources indicate that B Capital and Lightspeed Venture Partners are set to co-lead the Series C funding round, which could boost SolarSquare’s valuation to around $450 million to $500 million, alongside a new funding injection of $55 million to $60 million. This funding round has the potential to more than double SolarSquare’s valuation in just 18 months, highlighting the increasing investor confidence in India’s residential solar sector.

In its previous funding phase, Lightspeed Venture Partners played a key role in SolarSquare’s $40 million Series B investment, leading to a post-money valuation of nearly $200 million by December 2024. The forthcoming round will also tap into its growth fund, which has previously supported notable companies like Razorpay, a leading digital payments provider in India, and Zepto, known for its rapid delivery services.

Elevation Capital, a current investor, is expected to take part in the ongoing negotiations, which are reportedly advancing and anticipated to wrap up next month. While financial specifics are still being finalized, alterations to the agreement details may occur. To date, SolarSquare has secured a total of $61.1 million in equity financing, as noted by Tracxn, a platform that tracks startups.

India aims to reach a renewable energy capacity of 500 gigawatts by 2030, with solar energy expected to account for over half of this capacity. By 2025, India is projected to become the world’s third-largest solar energy producer, behind China and the U.S. The country’s installed solar capacity has surged from approximately 3 GW in 2014 to over 150 GW by 2026, largely fueled by government initiatives and subsidies that promote rooftop solar installations.

Founded in 2015 and headquartered in Mumbai, SolarSquare seeks to position itself as a prominent player in a largely fragmented residential solar market, which includes numerous small local installers and dealer networks associated with companies 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 installed over 150 megawatts of solar energy capacity across 29 cities in nine states, as per 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 corporations, including Swiggy, Zepto, and iD Fresh Food.

Currently, SolarSquare primarily targets residential clients and housing societies, having moved 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 combined residential and housing society projects, according to a trustworthy source. Furthermore, it aims to expand its residential solar capacity to 200 megawatts within this year, as indicated by the source.

SolarSquare has opted not to comment at this time. Efforts to obtain responses from B Capital, Lightspeed Venture Partners, and Elevation Capital have gone unanswered.