BENGALURU: In a striking development, Lightspeed Venture Partners is reportedly on the verge of spearheading a formidable $30 million funding round for SolarSquare, an innovative player in the rooftop solar sector, as disclosed by two sources privy to the discussions. This significant investment reflects Lightspeed’s escalating commitment to green ventures at a time when the global appetite for sustainable energy solutions is reaching fever pitch.
As anticipation mounts, this funding round is projected to position SolarSquare at an impressive valuation exceeding $130 million, with closure anticipated as soon as next month. The infusion of capital is earmarked not only for expansive growth initiatives but also to bolster working capital and support various corporate objectives. If finalized, this will mark SolarSquare’s most substantial primary capital influx to date.
Both Lightspeed and SolarSquare have yet to respond to inquiries seeking comments on the matter. This imminent investment follows SolarSquare’s earlier achievement of raising $4.2 million earlier this year, with backing from notable entities such as Zerodha’s Rainmatter Capital and Gruhas Proptech, which is led by Zerodha co-founder Nikhil Kamath, alongside Climate Angels and Lowercarbon Capital, as reported by Entrackr.
Valued at approximately $47.7 million back in April, according to data from Tracxn, SolarSquare has swiftly made waves within India’s expanding rooftop solar landscape by offering tailored B2C solar solutions tailored for homeowners, housing societies, and commercial enterprises alike.
Since its inception in 2015 by Neeraj Jain and Nikhil Nahar, the company has aimed at democratizing access to rooftop solar systems. By 2019, Shreya Mishra joined the venture as a third co-founder, further solidifying its leadership. Today, SolarSquare competes vigorously against other market contenders such as Oorjan, Mysun, Anya Green Energy, and ZunRoof.
In the fiscal year 2023, SolarSquare reported an increase in operational revenue to ₹107 crore, up from ₹81 crore the prior year. However, it faced an unfortunate widening of losses, climbing to ₹30 crore from ₹8 crore the previous fiscal year.
This strategic maneuver by Lightspeed comes as a testament to the growing trend among venture capitalists to invest in clean energy startups in response to mounting urgency surrounding climate change and the quest for energy efficiency. Earlier this year, Lightspeed revealed its intention to amplify its allocation of capital towards climate technology and artificial intelligence, veering away from its traditional realms of enterprise SaaS, fintech, and consumer tech.
Previous energy-associated investments by Lightspeed include Exponent Energy, a provider of fast-charging networks for electric vehicles, and the Indian Energy Exchange, which operates as a public power trading platform.
In an era ripe with awareness surrounding sustainable practices, investors are increasingly turning their focus toward clean-tech startups that champion energy efficiency, according to insights from the boutique investment bank Merisis.
Echoing this trend, earlier this year, Ruchira Shukla and Karthik Chandrasekar established Synapses, a dedicated $125 million fund targeting climate and health tech startups. Other prominent venture capital firms are similarly joining the ranks of those investing in clean energy, with RTP Global leading an $8.7 million funding round for climate-tech startup Varaha in February, while Leo Capital made its mark by participating in Sprih’s seed funding.
The landscape is shifting, and SolarSquare seems poised to ride the wave.
