SolarSquare, a leading cleantech startup specializing in residential solar solutions, has successfully raised $40 million in a recent funding round. The investment, spearheaded by venture capital fund Lightspeed, also saw participation from Lightrock, Elevation Capital, Chris Sacca’s Lowercarbon, Zerodha cofounder Nithin Kamath’s Rainmatter, and Gruhas Proptech. The Mumbai-based company plans to use the funds to expand its operations to 50 cities across India within the next two years, enhance its technology infrastructure, hire top talent, and invest in brand-building efforts. Currently, SolarSquare is active in 20 cities.
Chief Executive Shreya Mishra revealed that the company’s expansion strategy focuses on both tier I and tier II cities, particularly in regions with a significant presence of independent homes. Cities like Jodhpur and markets in Chennai, along with a major push in southern states like Tamil Nadu, Andhra Pradesh, Kerala, and Karnataka, are among the primary targets for growth. The company also intends to further expand in Rajasthan and Maharashtra.
Founded in 2015 by Mishra, Neeraj Jain, and Nikhil Nahar, SolarSquare is a B2C full-stack residential solar brand. The company specializes in the design, installation, and five-year post-installation maintenance of solar systems. Initially, SolarSquare operated as a B2B company, providing solar solutions to commercial corporate factories. However, in 2021, the company pivoted to focus exclusively on residential solar installations, a market it views as having significant untapped potential in India.
Mishra highlighted India’s growing solar revolution, noting that fewer than 1% of homes in the country currently use solar power. Despite India’s abundant sunlight, the country lags behind countries like Germany, the US, and Australia in terms of residential solar penetration. Mishra sees this as an opportunity to drive significant change, particularly as India enjoys more than 300 days of sunlight annually.
SolarSquare has also simplified the process of obtaining government permits for solar installation and facilitates financing through third-party financiers. Initially, the company had considered launching an in-house non-banking financial company (NBFC) to extend loans for residential solar buyers, but this plan was shelved in favor of a more streamlined approach. Mishra explained that instead of offering their own loans, SolarSquare developed technology that integrates with multiple financiers, allowing customers to receive loan approvals within five minutes.
In addition to expanding its services, SolarSquare is investing heavily in building a tech stack that will enable remote monitoring and diagnostics for residential solar systems. Mishra shared that the technology will provide real-time data on the electricity production of the 20,000 homes powered by SolarSquare, enabling the company to monitor every minute of energy production and diagnose any potential issues remotely.
Since its inception, SolarSquare has raised a total of $59.5 million in funding. The increasing interest in climate tech startups in India has been fueled by supportive government policies and a growing consumer base keen on adopting sustainable energy solutions. The clean energy sector in India is poised for continued growth, with SolarSquare at the forefront of making solar adoption simpler for Indian households.
Rahul Taneja, partner at Lightspeed, commented on the investment, noting that the clean energy transition is no longer confined to corporate presentations but is now reaching consumers’ homes. He highlighted SolarSquare’s success in simplifying the solar adoption process as key to its rapid growth. Mukul Arora, partner at Elevation Capital, echoed this sentiment, emphasizing SolarSquare’s ability to make solar energy adoption easier for Indian households through its full-stack approach. With the continued backing of venture capital investors, SolarSquare is well-positioned to play a major role in India’s energy transition.
