Highlights
SolarSquare Secures $40 Million in Series B Funding
SolarSquare, a solar startup, has successfully raised $40 million in its Series B funding round, which was led by Lightspeed. Participating investors include Lowercarbon, Elevation Capital, Zerodha, and Gruhas Proptech among others, with the funding announced in December 2024.
While specific details were not disclosed, analysis by Startup Superb of the regulatory filings provided valuable insights into the investment round, shareholding layout, and company valuation.
Breakdown of the Funding Round
Earlier this year, the board of SolarSquare approved the issuance of 15,729 Series B2 CCPS at an issue price of Rs 1,75,625 each, raising Rs 276.39 crore (approximately $32.8 million). Additionally, Rs 45 crore worth of partly paid shares were issued to co-founders Shreya Mishra and Neeraj Jain.
The Series B funding commenced in May 2024, during which Rs 35.44 crore ($4.2 million) was raised from Zerodha’s Rainmatter Capital, as well as investments from Abhijeet Pai and Nikhil Kamath’s Gruhas Proptech and Lowercarbon Capital, as highlighted by Startup Superb.
Lightspeed led this round with an investment of Rs 121.37 crore ($14.2 million), followed by Lowercarbon with Rs 69 crore (approximately $8.1 million). Contributions from Energy Access Acceleration and Elevation Capital amounted to Rs 52 crore ($6 million) and Rs 48.55 crore ($5.7 million) respectively. The remaining amounts were provided by investors such as Zerodha, Gruhas Tech, Good Capital, and several individuals.
According to estimates from Startup Superb, SolarSquare is currently valued at Rs 1,772 crore, which translates to around $209 million post allotment.
Established in 2015, SolarSquare focuses on residential solar solutions, including the design, installation, and financing of rooftop solar systems for homes. The company also caters to housing societies and commercial buildings.
Data from various sources indicates that SolarSquare has raised approximately $56 million overall. After the recent funding round, Lowercarbon Capital now stands as the largest shareholder, holding a 15.31% stake, closely followed by Elevation Capital with a 15.28% stake. Co-founders Shreya Mishra, Neeraj Jain, and Nikhil Nahar collectively maintain a 38.85% stake, while new investor Lightspeed possesses 6.85%.
Growth and Competition
In the fiscal year ending March 2024, SolarSquare reported a year-on-year growth of over 60% in operating revenue, amounting to Rs 175 crore compared to Rs 107 crore in FY23. However, during the same period, the company’s losses increased significantly, 2.3 times to Rs 69 crore.
SolarSquare encounters competition from various players in the residential solar sector, including Zunroof, which recently secured $2.3 million from Godrej, and Glow, which received $30 million in funding in December of last year. Other noteworthy competitors are Cleantech, Mysun, Oorjan, and Freyr Energy.