SolarSquare Seeks 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 the completion of a new funding arrangement after a major investment in December 2024, according to TechCrunch.

Insider sources suggest that B Capital and Lightspeed Venture Partners are set to co-lead the Series C funding round, potentially boosting SolarSquare’s valuation to between $450 million and $500 million and raising an additional $55 million to $60 million in new capital. This funding round is expected to more than double SolarSquare’s valuation in approximately 18 months, reflecting growing investor confidence in India’s residential solar sector.

In its last funding cycle, Lightspeed Venture Partners played a key role in SolarSquare’s $40 million Series B round, leading to a post-money valuation close to $200 million as of December 2024. The current funding round will also benefit from its growth fund, which has previously supported well-known companies like Razorpay, a leading digital payment platform in India, and Zepto, recognized for its swift delivery services.

Elevation Capital, a current investor, is also expected to be involved in the ongoing negotiations, which are reportedly at an advanced stage and likely to conclude next month. Details regarding the agreement may evolve as financial specifics remain in the finalization process. To date, SolarSquare has secured $61.1 million in equity funding, according to the startup tracking platform Tracxn.

India has set a goal to achieve a renewable energy capacity of 500 gigawatts by 2030, with solar energy projected to represent over half of this target. By 2025, India emerged as the third-largest solar power producer worldwide, following China and the U.S. The country’s installed solar capacity soared from around 3 GW in 2014 to over 150 GW by 2026, driven mainly by government incentives and subsidies that promote rooftop solar installation.

Founded in 2015 and based in Mumbai, SolarSquare aims to establish itself as a holistic residential solar platform in a sector dominated by numerous small local installers and dealer networks associated with manufacturers like Tata Power, Waaree Energies, Luminous Power Technologies, and Exide Industries. The startup focuses on designing, installing, and maintaining 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 noted on its website.

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

At present, residential clients and housing societies account for the majority of SolarSquare’s operations, as the company continues to shift away from less profitable industrial rooftop projects in recent years.

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

SolarSquare has opted not to comment at this time. B Capital, Lightspeed Venture Partners, and Elevation Capital have not responded to requests for comments.