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

SolarSquare, an Indian startup specializing in rooftop solar solutions, is reportedly nearing a new funding agreement following a major investment in December 2024, according to TechCrunch.

Sources suggest that B Capital and Lightspeed Venture Partners are set to co-lead the Series C funding round, potentially elevating SolarSquare’s valuation to between $450 million and $500 million, while generating an additional $55 million to $60 million in fresh capital. This funding is expected to more than double SolarSquare’s valuation in approximately 18 months, reflecting an upswing in investor confidence within India’s residential solar market.

In the previous funding round, Lightspeed Venture Partners guided SolarSquare’s $40 million Series B round, resulting in a post-money valuation close to $200 million in December 2024. The current funding round is also supported by its growth fund, known for its investments in notable companies such as Razorpay, a leading digital payment platform in India, and Zepto, recognized for its rapid delivery services.

Elevation Capital, an existing investor, is also likely to participate in negotiations, which are said to be in advanced stages, anticipated to wrap up next month. The details of the deal may still be subject to change, as financial particulars remain to be finalized. To date, SolarSquare has garnered $61.1 million in equity financing, according to the startup tracking platform Tracxn.

India aims for a renewable energy capacity of 500 gigawatts by 2030, with solar energy projected to represent over half of this goal. By 2025, the country emerged as the third-largest producer of solar power globally, trailing only China and the U.S. The nation’s installed solar capacity escalated from around 3 GW in 2014 to over 150 GW by 2026, largely driven by government incentives and subsidies promoting rooftop solar adoption.

Founded in 2015 and based in Mumbai, SolarSquare aims to be a comprehensive residential solar platform in an industry marked by a multitude of small local installers and dealer networks linked to manufacturers 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 typical of urban India), and businesses, having deployed over 150 megawatts of solar capacity across 29 cities in nine states, as stated on its website.

Reports indicate that SolarSquare has powered nearly 50,000 homes and approximately 400 housing societies. The startup has also provided rooftop solar solutions for major corporations, including Swiggy, Zepto, and iD Fresh Food.

Currently, residential customers and housing societies constitute the majority of SolarSquare’s operations, as the company has been gradually shifting away from less profitable industrial rooftop projects in recent years.

The startup has surpassed an annualized revenue run rate of ₹10 billion (around $104 million) from its combined residential and housing society projects, according to a reliable source. Moreover, the goal is to reach 200 megawatts within its residential solar portfolio this year, as disclosed by the source.

SolarSquare has opted not to provide comments at this time. B Capital, Lightspeed Venture Partners, and Elevation Capital did not respond to inquiries for statements.