SolarSquare in talks to raise up to $60M as India’s rooftop solar market draws more VC interest

SolarSquare, an Indian rooftop solar startup that helps homes and housing communities go solar, is in advanced talks to raise new capital after securing the largest solar investment in India in December 2024, TechCrunch has learned.

IB Capital and Lightspeed Venture Partners will co-lead the Series C round, which could value SolarSquare between $450 million and $500 million and bring in $55 million to $60 million in new investment, according to multiple people familiar with the matter. That would represent more than a doubling of SolarSquare’s value in about 18 months – a sign of how quickly investor confidence is growing in India’s solar market.

Lightspeed Venture Partners previously led SolarSquare’s Series B round of $40 million with an estimated value of $200 million after December 2024. This time, according to the source, it is investing with its growth fund, which has backed names like Razorpay – India’s leading digital payments platform – and Zeptory, a fast startup.

Existing investors Elevation Capital are also expected to participate in the deal, which is in an advanced stage and is expected to close next month. Terms are subject to change as funding has not been finalized. SolarSquare has raised $61.1 million in equity funding to date, according to startup data platform Tracxn.

India has set a goal of achieving 500 gigawatts of renewable energy capacity by 2030, with solar expected to contribute more than half of that figure. The country will become the world’s third largest producer of solar energy by 2025, behind only China and the US Its combined solar capacity has increased from 3 GW in 2014 to more than 150 GW in 2026, helped in part by government incentives and subsidy programs aimed at accelerating the roof of electricity.

Mumbai-headquartered SolarSquare, founded in 2015, positions itself as a stacked solar powerhouse in a market that remains highly fragmented, dominated by small local installers and dealer networks tied to component manufacturers such as Tata Power, Waaree Energies, Luminous Power Technologies, and Exideology. The startup designs, installs, and maintains rooftop solar systems for homes, condominiums (apartments and gated communities located in urban India), and businesses, and has more than 150 megawatts of solar capacity and presence across 29 cities in nine states, on its website.

SolarSquare has powered about 50,000 homes and about 400 housing communities, according to the source. The startup has also installed rooftop solar systems for large businesses including Swiggy, Zepto, and iD Fresh Food.

Residential customers and housing associations now make up the majority of SolarSquare’s business, according to people familiar with the program’s operations, as the startup has largely scaled back low-end industrial rooftop solar projects in recent years.

The start-up exceeded the annual revenue of more than R10 billion (about $104 million) for all houses and housing communities combined, according to a source familiar with the matter. It also aims to reach 200 megawatts in its residential solar portfolio this year, the source said.

SolarSquare declined to comment. IB Capital, Lightspeed Venture Partners, and Elevation Capital did not respond to requests for comment.