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

SolarSquare, an Indian startup specializing in rooftop solar energy solutions, is nearing the completion of a new funding agreement following a substantial investment in December 2024, according to TechCrunch.

Reports suggest that B Capital and Lightspeed Venture Partners are set to co-lead the Series C funding round, which could raise SolarSquare’s valuation to around $450 million to $500 million and secure an additional $55 million to $60 million in new capital. This funding round has the potential to more than double SolarSquare’s valuation within approximately 18 months, signaling increasing investor confidence in India’s residential solar sector.

In its previous funding round, Lightspeed Venture Partners was instrumental in SolarSquare’s $40 million Series B investment, resulting in a post-money valuation of nearly $200 million by December 2024. The upcoming round will further tap into its growth fund, which has previously supported established companies such as Razorpay, a leading digital payments provider in India, and Zepto, known for its quick delivery services.

Elevation Capital, an existing investor, is expected to join the ongoing negotiations, which are reportedly quite advanced and anticipated to conclude next month. While the financial specifics are still being finalized, modifications to the agreement details may take place. To date, SolarSquare has successfully raised $61.1 million in equity funding, as reported by Tracxn, a platform monitoring startups.

India aims to achieve a renewable energy capacity of 500 gigawatts by 2030, with solar energy expected to contribute more than half of this target. By 2025, India is set to become the third-largest solar energy producer globally, following China and the U.S. The country’s installed solar capacity increased 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 key player in the residential solar market, which is largely fragmented with small local installers and dealer networks associated with companies like Tata Power, Waaree Energies, Luminous Power Technologies, and Exide Industries. The startup specializes in designing, installing, and maintaining rooftop solar systems for homes, housing societies (including apartment complexes and gated communities commonly found in urban India), and businesses, having deployed over 150 megawatts of solar energy capacity across 29 cities in nine states, as stated on its website.

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

Currently, SolarSquare is primarily focused on residential clients and housing societies, moving 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 reliable source. It also aims to expand its residential solar portfolio to 200 megawatts within this year, as disclosed by the source.

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