SolarSquare, the rooftop solar startup, has recently secured a significant investment of $4.2 million from a consortium of investors, including Zerodha Technology, Gruhas Proptech led by Abhijeet Pai and Nikhil Kamath, Lowercarbon Capital, and Good Capital.
According to the regulatory filings, SolarSquare’s board has approved a special resolution to allot 7,589 Series B compulsory convertible debentures at an issue price of Rs 46,710, raising a total of Rs 35.44 crore. Lower carbon Capital and Good Capital invested Rs 20.74 crore and 3.32 crore, respectively, while Gruhas Proptech and Zerodha Technology contributed Rs 6.22 crore and Rs 3.98 crore, respectively.
As outlined in the filings, the funds raised will primarily be allocated towards expansion, working capital requirements, and general corporate purposes.
Each debenture issued during this round will be converted into a preference share at the next qualified funding round. Investors are considering this conversion to take place at a valuation of $75 million, as mentioned in the filings.
SolarSquare has now raised over $20 million in total funding, including its Rs 100 crore ($12 million) Series A round led by Elevation Capital and Lowercarbon in November 2022.
Lowercarbon Capital holds the most significant external stake in SolarSquare, at 20.29%, followed by Elevation Capital, at 14.99%. Zerodha Technology and Gruhas Proptech own 3.84% and 2.50%, respectively.
Founded by Neeraj Jain and Nikhil Nahar, SolarSquare specializes in designing, installing, and financing rooftop solar systems for homes, housing societies, and commercial establishments.
Although the company is yet to file its financial statements for FY24, its revenue from operations witnessed a significant growth of 35.4% to Rs 107 crore in FY23. However, it also posted a Rs 35 crore loss in the same period.
SolarSquare faces competition from other market players, including Zunroof, Cleantech, Mysun, Oorjan, and Freyr Energy.
In a strategic move earlier this year, SolarSquare acquired PV Diagnostics, a company renowned for its expertise in the utility-scale solar power sector. This acquisition demonstrates the company’s commitment to expanding its footprint and diversifying its offerings within the solar energy industry.
