SolarSquare Secures $4.2 Million in Funding for Expansion Plans

SolarSquare, a prominent player in the rooftop solar industry, has successfully secured $4.2 million in fresh funding from a consortium of existing investors. This latest round of financing will fuel the company’s expansion initiatives, address working capital needs, and support general corporate endeavors.

Breakdown of Investments

The funding round saw participation from established investors, including Rainmatter Capital (backed by Zerodha’s founders), Gruhas Proptech (founded by Abhijeet Pai and Nikhil Kamath), Lowercarbon Capital, Climate Angels, and Good Capital. Lowercarbon Capital and Good Capital emerged as the most significant contributors, investing Rs 20.74 crore and Rs 3.32 crore, respectively. Gruhas Proptech and Rainmatter Capital also made substantial contributions of Rs 6.22 crore and Rs 3.98 crore each.

Fueling Growth and Future Possibilities

The regulatory filings reveal that each debenture issued during this round will convert into a preference share at the company’s next qualified funding round. The projected valuation for this conversion sits at a promising $75 million. Estimates from TheKredible suggest SolarSquare’s current valuation is approximately Rs 394 crore ($48 million) following the allotment of these funds. The company might raise additional capital within this round, potentially influencing the final valuation.

Building on a Strong Foundation

This latest investment builds upon SolarSquare’s previous funding success. Notably, the company secured $12 million in a Series A round led by Elevation Capital and Lowercarbon in November 2022, bringing their total funding to over $20 million to date.

Investor Landscape

Based on data compiled by TheKredible, Lowercarbon Capital holds the largest external stake in SolarSquare at 20.29%. Elevation Capital follows closely behind with a 14.99% stake. Rainmatter Capital and Gruhas Proptech hold smaller yet significant shares of 3.84% and 2.50%, respectively.

About SolarSquare: A One-Stop Shop for Solar Solutions

Founded by Neeraj Jain and Nikhil Nahar, SolarSquare operates as a comprehensive provider of rooftop solar solutions. The company caters to residential, housing society, and commercial establishments, offering design, installation, and financing services for rooftop solar systems.

Financial Performance and Market Landscape

While SolarSquare has yet to file its financial statements for FY24, the company reported a 35.4% increase in revenue from operations during FY23, reaching Rs 107 crore. However, they also incurred a loss of Rs 35 crore in the same period. SolarSquare faces competition from established players like Zunroof, Cleantech, Mysun, Oorjan, and Freyr Energy in the rooftop solar market. Notably, the company strategically expanded its offerings by acquiring PV Diagnostics, a company specializing in the utility-scale solar power sector, in February.