SolarSquare Nears $55M-$60M Raise as VCs Double Down on Indian Rooftop Solar

SolarSquare, a Mumbai-based rooftop solar installer, is in late-stage talks to secure roughly $55 million to $60 million in fresh funding that would peg the company’s value at about $450 million to $500 million, according to people briefed on the negotiations. The proposed investment, expected to close next month if terms hold, is being lined up with B Capital and Lightspeed Venture Partners planning to co-lead the round, and could mark a valuation increase of more than twice the level seen about a year and a half ago.

Lightspeed, which led the startup’s $40 million raise in December 2024, is said to be participating again through its growth vehicle, joining new partner B Capital. Existing backer Elevation Capital is also set to take part, the sources added. To date, SolarSquare has pulled in about $61 million in equity financing, according to startup tracking services, and the fresh capital would be its largest infusion since late 2024. The final terms remain under negotiation and could shift before any deal is signed.

The talks come as India pushes to scale up renewable capacity to 500 gigawatts by 2030, with solar expected to deliver over one-half of that target. The country moved into third place globally for solar generation in 2025, and cumulative solar capacity has climbed from roughly 3 GW in 2014 to north of 150 GW in 2026, driven partly by government subsidies and programs aimed at expanding rooftop systems for consumers and apartment complexes.

Founded in 2015, SolarSquare positions itself as an end-to-end provider for residential rooftop projects in a market still dominated by small local installers and dealer networks connected to large component makers. The company designs, fits and services rooftop arrays for individual homes, multi-unit housing societies and corporate sites, and it reports more than 150 megawatts installed across 29 cities in nine states on its public materials.

People familiar with the company say SolarSquare has brought solar power to about 50,000 households and roughly 400 housing societies, and it has installed systems for large customers including well-known food delivery and quick-commerce firms. Management has shifted focus away from lower-margin industrial rooftops, the sources said, and now sees homes and housing complexes as the main growth engine. The firm has surpassed an annualized revenue run rate of more than 10 billion rupees, or about $104 million, and is targeting a residential portfolio of 200 megawatts this year.

Industry observers say the likely round reflects growing investor appetite for consumer-facing clean-energy plays in India, where falling equipment costs and tighter power tariffs make rooftop systems more attractive. “If the deal goes through, it would underline how investors view household solar as a scalable market,” said a renewable-energy analyst who reviewed the company’s trajectory. But they cautioned that policy shifts, grid reform and local competition could affect margins. SolarSquare and the investors contacted did not provide comment for this report.