SolarSquare in Advanced Talks to Raise Significant Investment Amid India’s Rooftop Solar Boom
SolarSquare, an Indian rooftop solar startup that helps households and housing societies adopt solar energy, is in advanced talks to raise new capital after securing the largest solar investment in India in December 2024, TechCrunch has learned.
Investment Surge in SolarSquare
B Capital and Lightspeed Venture Partners are expected to co-lead the Series C round, which could value SolarSquare between $450 million and $500 million and generate $55 million to $60 million in new investment, according to several people familiar with the matter. This potential investment reflects a growing conviction among investors regarding the residential solar market in India, with SolarSquare’s valuation more than doubling in about 18 months.
Previous Funding Success
Lightspeed Venture Partners had previously led SolarSquare’s $40 million Series B round, achieving a post-funding valuation of around $200 million in December 2024. This time, they are investing through their growth fund, which has supported notable companies like Razorpay, India’s leading digital payments platform, and Zepto, the fast-delivery startup.
Continued Support from Elevation Capital
Existing investor Elevation Capital is also expected to participate in the deal, which is at an advanced stage and anticipated to close next month. While conditions may still change, the deal showcases continued confidence in SolarSquare’s growth potential. To date, SolarSquare has raised $61.1 million in equity funding, according to startup data platform Tracxn.
India’s Renewable Energy Ambitions
India has set an ambitious target of reaching 500 gigawatts of renewable energy capacity by 2030, with solar power expected to contribute more than half of that total. The country is on track to become the world’s third-largest producer of solar energy by 2025, trailing only China and the United States. Government incentives and subsidy programs have supported the growth of installed solar capacity from about 3 GW in 2014 to over 150 GW in 2026.
SolarSquare’s Role in a Fragmented Market
Mumbai-headquartered SolarSquare, founded in 2015, positions itself as a comprehensive residential solar platform in a market dominated by small local installers and reseller networks linked to component manufacturers like Tata Power and Waaree Energies. The startup designs, installs, and maintains rooftop solar systems for homes, housing societies, and businesses, with a presence in 29 cities across nine states.
Impact and Future Plans
SolarSquare has powered nearly 50,000 homes and around 400 housing societies. The startup has also installed solar systems on the roofs of major companies, including Swiggy, Zepto, and iD Fresh Food. Residential customers and housing companies now form the majority of SolarSquare’s business, as the company has scaled back its focus on low-margin industrial projects.
The startup has surpassed an annualized revenue run rate of over ₹10 billion (around $104 million) across households and housing societies combined. It aims to expand its residential solar portfolio to 200 megawatts this year.
SolarSquare declined to comment. B Capital, Lightspeed Venture Partners, and Elevation Capital did not respond to requests for comment.
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