SolarSquare Secures $4.2 Million Funding
Rooftop solar startup SolarSquare has raised $4.2 million from its existing investors, who include Zerodha’s Rainmatter Capital, Abhijeet Pai and Nikhil Kamath’s Gruhas Proptech, Lowercarbon Capital, Climate Angels, and Good Capital. This fundraising round is a critical milestone for the company as it continues to broaden its reach and skills in the solar energy industry.
Details of the Fundraising
SolarSquare’s board of directors authorized a special resolution to award 7,589 Series B obligatory convertible debentures at an issue price of Rs 46,710 apiece, for a total of Rs 35.44 crore, according to regulatory filings. Lower Carbon Capital gave Rs 20.74 crore, Good Capital invested Rs 3.32 crore, Gruhas Proptech contributed Rs 6.22 crore, and Rainmatter Capital added Rs 3.98 crore.
Utilization of Funds
The newly raised cash will be used for business expansion, working capital needs, and general corporate objectives. Each debenture issued in this transaction will be converted into a preference share at the subsequent qualified fundraising round. Investors estimate that this conversion will occur at a $75 million valuation.
Valuation and Future Fundraising Plans
SolarSquare’s post-allotment valuation is estimated by TheKredible to be around Rs 394 crore ($48 million). The company is anticipated to raise additional capital during this round, which could affect the final valuation. SolarSquare has raised more than $20 million, including a Rs 100 crore ($12 million) Series A investment led by Elevation Capital and Lowercarbon in November 2022. The current fundraising campaign builds on the momentum established by prior efforts.
Shareholding Pattern
According to TheKredible, Lowercarbon Capital is the largest external stakeholder in SolarSquare, with a 20.29% interest, followed by Elevation Capital with 14.99%. Rainmatter Capital and Gruhas Proptech have 3.84% and 2.50% holdings, respectively. The Kindle platform features detailed shareholding patterns.SolarSquare, founded by Neeraj Jain and Nikhil Nahar, specializes in the design, installation, and financing of residential rooftop solar systems. The company also offers solar systems for housing cooperatives and commercial buildings. SolarSquare’s objective is to make solar energy accessible and inexpensive, thereby encouraging sustainable living.
Financial Performance
While SolarSquare has yet to file its financial results for FY24, it announced a 35.4% revenue rise to Rs 107 crore in FY23. Despite this rise, the company suffered a loss of Rs 35 crore throughout the same period.SolarSquare competes with companies such as Zunroof, Cleantech, Mysun, Oorjan, and Freyr Energy. The organization intends to distinguish itself by creative solutions and great customer service.PV Diagnostics, a business that specializes in utility-scale solar power sector diagnostics, was acquired by SolarSquare in February. This acquisition is expected to boost SolarSquare’s capabilities and market reach.
Future Prospects
SolarSquare’s strategic plans and strong fundraising efforts position it for future success. The company intends to use the new money to expand its operations, boost product offerings, and improve the customer experience. SolarSquare seeks to strengthen its position as a rooftop solar market leader by focusing on innovation and sustainability.
Investor Confidence
The continuous backing of significant investors such as Zerodha’s Rainmatter Capital, Gruhas Proptech, Lowercarbon Capital, Climate Angels, and Good Capital demonstrates a strong belief in SolarSquare’s business strategy and growth prospects. This fundraising round not only provides cash support, but also strategic assistance to propel the company’s future growth.
Industry Impact
SolarSquare’s activities help to achieve the larger goal of expanding renewable energy use in India. By making solar energy more accessible and affordable, the company helps the country shift to sustainable energy options. The monies raised will allow SolarSquare to expand its influence, reaching more customers and encouraging greener living.
With a solid foundation of innovative products, savvy acquisitions, and strong investor support, SolarSquare is well-positioned for sustained growth and success in the rooftop solar market. The company’s dedication to sustainability and consumer happiness will drive its future endeavors, making solar energy a more accessible alternative for a bigger audience.
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