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

SolarSquare, an emerging player in India's rooftop solar sector, is reportedly in advanced negotiations to secure a substantial new investment, building on its previous success in attracting significant venture capital. The startup, which facilitates the adoption of solar energy for households and housing societies, is working towards a Series C funding round led by B Capital and Lightspeed Venture Partners. This round could potentially value SolarSquare between $450 million and $500 million, with expectations of raising between $55 million and $60 million. This potential funding marks a remarkable growth trajectory for SolarSquare, which has seen its valuation more than double in just over 18 months. Investor confidence in India's residential solar market has surged, as highlighted by the startup's previous successful $40 million Series B funding round, which was led by Lightspeed at a valuation of approximately $200 million. In this upcoming round, Lightspeed is anticipated to leverage its growth fund, which has previously backed notable companies like Razorpay and Zepto. Existing investor Elevation Capital is also expected to join in this latest funding initiative, which is poised to finalize next month, though terms may still evolve as discussions continue. To date, SolarSquare has raised approximately $61.1 million in equity financing, according to data from Tracxn. With India aiming for 500 gigawatts of renewable energy capacity by 2030—over half of which is expected to come from solar—the country has become the third-largest solar power producer globally, following China and the United States. Founded in 2015 and based in Mumbai, SolarSquare has carved out a niche in a fragmented market dominated by small local installers. The startup designs, installs, and maintains rooftop solar systems, having set up over 150 megawatts of solar capacity across 29 cities in nine states. It serves nearly 50,000 homes and around 400 housing societies, and has also executed projects for major enterprises such as Swiggy, Zepto, and iD Fresh Food. As SolarSquare continues to expand its residential customer base, it has shifted focus away from lower-margin industrial projects, now boasting an annual revenue run rate exceeding ₹10 billion (approximately $104 million). The company aims to enhance its residential solar portfolio, targeting 200 megawatts for the current year. As for comments on the funding discussions, SolarSquare and its investors have chosen to remain silent for now.