SolarSquare raises $40 million in one of India’s largest solar VC deals, Lightspeed leads the round

SolarSquare, one of India’s leading operators of distributed solar assets, has secured $40 million (around Rs 338 crore) in a Series B funding round, marking one of the largest venture capital infusions in the Indian solar sector. The round was led by Lightspeed, with participation from Lightrock and existing investors Elevation Capital, Chris Sacca’s Lowercarbon, Nithin Kamath’s Rainmatter, and Gruhas Proptech.

Established in 2015 in Mumbai as a bootstrapped solar EPC company, SolarSquare has evolved into a full-stack residential solar solutions brand. It offers end-to-end services, including design, installation, financing, permit facilitation, and post-sales maintenance, eliminating the need for middlemen.

The company has catered to over 20,000 homes and more than 200 cooperative housing societies across India. The newly-raised capital will be deployed to develop an advanced asset management tech stack for remote monitoring and diagnostics of residential solar systems.

Shreya Mishra, CEO of SolarSquare said, “Only 1% of homes in India have adopted solar so far- we want to accelerate solar adoption by making it easy for families to make the switch to solar. And that’s why we are the first company in India to offer rooftop solar with a promise of guaranteed savings, taking responsibility for not just the installation but also the performance of solar thereafter.”

The recent $40 million infusion will accelerate SolarSquare’s growth ambitions, which include expanding operations to over 50 cities from its current footprint of 20 cities. The company also plans to invest heavily in technology, talent and brand building, Mishra added.

Investing in climate tech startups is part of Lightspeed’s strategy to enable clean energy transition. Rahul Taneja, Partner at Lightspeed who led the investment for the fund in Solar Square, highlights India’s unique potential for clean energy innovation, offering VCs both economic returns and environmental impact. Lightspeed’s investment in SolarSquare will fuel its expansion from 20 to 50 cities, scale technology and talent, and develop advanced asset management tools for remote solar monitoring and diagnostics, enhancing efficiency and customer satisfaction.

Mukul Arora, Partner at Elevation Capital said, “Despite growing environmental consciousness, adopting solar remained complex for Indian households. Solar Square's full-stack approach of owning the entire customer experience has already set them apart and made the solar adoption process much simpler. With supportive policies and rising consumer awareness, SolarSquare is well-positioned to bring reliable, affordable solar energy to millions of Indian homes.”

Prior to this Series B round, SolarSquare had raised $19.5 million across three funding rounds. The company boasts an impressive roster of angel investors, including Vidit Atrey and Sanjeev Barnwal of Meesho, Amit Agrawal, Saurabh Garg, and Akhil Gupta of NoBroker, Ashish Goyal of UrbanLadder, Vijay Shekhar Sharma of Paytm, Nipun Sahni of Apollo Global, and Harsh Shah of GoFynd. Elluminate Capital served as the exclusive financial advisor for this transaction.