SolarSquare Secures $4.2 Million in Fresh Funding from Zerodha’s Rainmatter, Gruhas, and Others
- ByStartupStory | May 17, 2024
Rooftop solar startup SolarSquare has successfully raised $4.2 million in a new funding round, attracting investment from existing backers including Zerodha’s Rainmatter Capital, Gruhas Proptech (founded by Abhijeet Pai and Nikhil Kamath), Lowercarbon Capital, Climate Angels, and Good Capital. This infusion of funds is expected to drive the company’s expansion plans, fulfill working capital needs, and support general corporate purposes.
This news was first reported by Entrackr.
The latest financial boost was formalized through a special resolution by SolarSquare’s board, resulting in the allotment of 7,589 Series B compulsory convertible debentures at an issue price of Rs 46,710, thereby raising Rs 35.44 crore. Notably, Lowercarbon Capital and Good Capital contributed Rs 20.74 crore and Rs 3.32 crore respectively, while Gruhas Proptech and Rainmatter Capital invested Rs 6.22 crore and Rs 3.98 crore, respectively.
These debentures will be converted into preference shares during the next qualified funding round, anticipated to occur at a valuation of $75 million. Currently, SolarSquare is valued at approximately Rs 394 crore ($48 million) post-allotment, according to TheKredible estimates. The company expects to raise additional funds in this round, which may adjust the final valuation.
To date, SolarSquare has raised over $20 million, including a Rs 100 crore ($12 million) Series A round led by Elevation Capital and Lowercarbon Capital in November 2022. TheKredible’s data shows that Lowercarbon is the largest external stakeholder with a 20.29% stake, followed by Elevation Capital at 14.99%. Rainmatter and Gruhas Proptech hold 3.84% and 2.50% stakes, respectively.
Founded by Neeraj Jain and Nikhil Nahar, SolarSquare specializes in designing, installing, and financing rooftop solar systems for residential homes, housing societies, and commercial establishments. The company recently expanded its capabilities by acquiring PV Diagnostics, a company with expertise in utility-scale solar power.
Financially, SolarSquare’s revenue from operations grew by 35.4% to Rs 107 crore in FY23, although it posted a loss of Rs 35 crore for the same period. The financial statements for FY24 are yet to be filed.
SolarSquare faces competition from several other players in the rooftop solar market, including Zunroof, Cleantech, Mysun, Oorjan, and Freyr Energy. Despite the competition, the recent funding round underscores investor confidence in SolarSquare’s potential to lead the transition towards sustainable energy solutions in India.
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