BENGALURU
:
Lightspeed Venture Partners is in advanced discussions to lead a $30 million funding round in SolarSquare, a rooftop solar startup, alongside other investors, two people familiar with the matter told Mint.
The investment signals Lightspeed’s deepening interest in climate-focused ventures as demand for clean energy accelerates.
“The round is expected to happen at a valuation of more than $130 million and is expected to close next month,” one of the people cited above said. The new funds will be used for expansion, to meet working capital requirements and other corporate purposes. This is likely to be the company’s largest primary capital infusion so far.
Lightspeed and SolarSquare did not immediately respond to Mint’s requests for a comment.
The investment follows a $4.2 million round raised by SolarSquare earlier this year from investors including Zerodha’s Rainmatter Capital, Gruhas Proptech led by Zerodha co-founder Nikhil Kamath, Climate Angels, and Lowercarbon Capital, according to Entrackr.
As of April, the company was valued at $47.7 million, data from Tracxn showed.
SolarSquare’s rapid growth has captured attention in India’s rooftop solar sector, where it provides B2C solar solutions for homeowners, housing societies, and commercial businesses.
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In 2022, SolarSquare raised ₹100 crore in a Series A funding round led by Elevation Capital and Lowercarbon. At the time, the company was active in six key markets—Bengaluru, Delhi, Gujarat, Hyderabad, Madhya Pradesh, and Maharashtra—offering B2C solar solutions. Over two years, SolarSquare claims to have installed its systems in nearly 5,000 homes.
Founded in 2015 by Neeraj Jain and Nikhil Nahar, SolarSquare set out to make rooftop solar accessible to a wider audience. Four years later, Shreya Mishra joined as a third co-founder. Today, the company serves individual homes, housing societies, and commercial clients, competing with players like Oorjan, Mysun, Anya Green Energy, and ZunRoof.
In FY23, SolarSquare’s revenue from operations rose to ₹107 crore from ₹81 crore the previous year, though losses also widened to ₹30 crore from ₹8 crore in FY22.
Lightspeed’s move comes as venture capitalists increasingly invest in clean energy to address growing concerns around climate change and energy efficiency. In March, the firm outlined plans to channel more capital into climate tech and artificial intelligence, expanding beyond its traditional focus on enterprise SaaS, fintech, and consumer tech. Lightspeed’s previous energy investments include Exponent Energy, a fast-charging network provider for EVs (electric vehicles), and Indian Energy Exchange, a public power trading platform.
Investors are increasingly targeting clean-tech startups focused on energy efficiency, as awareness of sustainable practices grows among individuals and companies, according to a report by boutique investment bank Merisis.
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Earlier this year, Ruchira Shukla and Karthik Chandrasekar launched Synapses, a $125 million fund dedicated to climate and health tech startups. Other major venture capital firms are also joining the clean energy push—RTP Global led an $8.7 million funding round for climate-tech startup Varaha in February, while Leo Capital participated in Sprih’s seed round.
