SolarSquare Seeks $60M Investment as Venture Capital Eye Expands in India’s Rooftop Solar Sector

SolarSquare, an Indian startup specializing in rooftop solar energy solutions, is approaching the final stages of a new funding round after securing a substantial investment in December 2024, as stated by TechCrunch.

Sources suggest that B Capital and Lightspeed Venture Partners are poised to co-lead the Series C funding round, potentially increasing SolarSquare’s valuation to around $450 million to $500 million, alongside an additional funding influx of $55 million to $60 million. This upcoming round may more than double SolarSquare’s valuation in just 18 months, reflecting the increasing confidence of investors in India’s residential solar sector.

In the previous funding stage, Lightspeed Venture Partners played a crucial role in SolarSquare’s $40 million Series B investment, resulting in a post-money valuation of nearly $200 million by December 2024. This new round is also expected to utilize its growth fund, which has a track record of backing prominent companies such as Razorpay, a leading digital payments platform in India, and Zepto, recognized for its rapid delivery services.

Elevation Capital, a current investor, is anticipated to participate in the ongoing negotiations, which are reportedly advancing well and are expected to wrap up next month. While financial specifics are still being finalized, changes to the agreement may occur. So far, SolarSquare has amassed a total of $61.1 million in equity financing, according to Tracxn, a platform that tracks startups.

India aims for a renewable energy capacity of 500 gigawatts by 2030, with solar energy projected to account for over half of this target. By 2025, India is expected to become the world’s third-largest solar energy producer, trailing only China and the U.S. The country’s installed solar capacity has soared from around 3 GW in 2014 to over 150 GW by 2026, primarily driven by government policies and incentives promoting rooftop solar installations.

Founded in 2015 and headquartered in Mumbai, SolarSquare seeks to establish its presence in a predominantly fragmented residential solar market, which is composed of numerous small local installers and dealer networks associated with companies like Tata Power, Waaree Energies, Luminous Power Technologies, and Exide Industries. The startup excels in the design, installation, and maintenance of rooftop solar systems for homes, housing societies (including apartment complexes and gated communities common in urban areas), and businesses, having installed over 150 megawatts of solar power across 29 cities in nine states, as indicated on its website.

Reports show that SolarSquare has supplied electricity to nearly 50,000 homes and around 400 housing societies. The startup has also provided rooftop solar solutions to notable companies such as Swiggy, Zepto, and iD Fresh Food.

Currently, SolarSquare is primarily concentrating on residential clients and housing societies, stepping back from less profitable industrial rooftop projects in recent years.

The startup has claimed an annualized revenue run rate exceeding ₹10 billion (approximately $104 million) from its combined residential and housing society initiatives, according to a reliable source. Furthermore, it aims to boost its residential solar capacity to 200 megawatts within this year, as per the source.

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