Rooftop solar startup SolarSquare has raised $4.2 million in fresh funding from existing investors Zerodha, Abhijeet Pai, and Nikhil Kamath’s Gruhas, Lowercrabon Capital, and Good Capital.
According to regulatory filings, SolarSquare’s board passed a special resolution to allot 7,589 Series B compulsory convertible debentures at an issue price of Rs 46,710, raising Rs 35.44 crore.
Lower carbon and Good Capital invested Rs 20.74 crore and Rs 3.32 crore respectively, while Gruhas Proptech and Zerodha Technology separately contributed Rs 6.22 crore and Rs 3.98 crore.
The funds will be allocated for expansion, working capital requirements, and general corporate purposes, as per the filings.
Each debenture will convert into a preference share at the next qualified funding round, expected to occur at a valuation of $75 million, according to the filings.
Post-allotment, SolarSquare’s valuation stands at around Rs 394 crore or $48 million, as estimated by TheKredible. Further funding rounds may alter the valuation.
SolarSquare, founded by Neeraj Jain and Nikhil Nahar, specializes in designing, installing, and financing rooftop solar systems for homes, housing societies, and commercial establishments.
Despite posting a loss of Rs 35 crore in FY23, the company’s revenue from operations grew 35.4% to Rs 107 crore in the same period. SolarSquare faces competition from players like Zunroof, Cleantech, Mysun, Oorjan, and Freyr Energy.
In February, SolarSquare expanded its portfolio by acquiring PV Diagnostics, enhancing its expertise in the utility-scale solar power sector.
Source: Entrackr
