Mumbai-Based Clean Energy Platform Attracts International Investors to Scale its End-to-End Solar Solutions for MSMEs and Homeowners
Mumbai-based clean energy startup Aerem has successfully raised ₹100 crore (approximately $12 million) in a Series A funding round spearheaded by Japan’s University of Tokyo Edge Capital Partners (UTEC). The investment round also welcomed participation from several prominent institutional investors including British International Investment (BII), SE Ventures (backed by Schneider Electric), and Riverwalk Holdings, alongside existing backers Blume Ventures and Avaana Capital.
This significant capital infusion will enable Aerem to strengthen its market presence, expand its lending portfolio, and enhance its technological infrastructure for solar marketplace operations across India. The company has also secured additional debt financing from a consortium of financial institutions including IDFC, AU Small Finance, Axis Bank, Northern Arc, MAS Financials, and Vivriti Capital to further bolster its growth trajectory.
Building on Previous Success
The latest funding builds upon Aerem’s earlier financial milestone, following a $5 million Pre-Series A round led by Avaana Capital approximately two years ago. With this new investment, Aerem’s total funding has reached approximately ₹166.47 crore ($19.5 million), demonstrating continued investor confidence in its business model and growth potential.
Kiran Mysore, Principal at UTEC, explained their investment rationale: “Aerem is at the forefront of India’s rooftop solar revolution… We were impressed by Aerem’s seamless integration of operational excellence in credit and marketplace dynamics, paired with a cutting-edge solar tech platform leveraging digital twins.”
Comprehensive Solar Solutions for India’s Energy Transition
Founded in 2021 by Anand Jain (CEO) and Vikesh Agrawal (COO), Aerem has established itself as an end-to-end platform facilitating distributed solar energy adoption across India. The company addresses multiple friction points in the solar installation journey through three key business verticals:
- Solar Financing: Through its NBFC arm NetZero Finance, Aerem provides loans to businesses and homeowners for solar installations
- Supply Chain Solutions: The company offers financing solutions to solar equipment suppliers and Engineering, Procurement, and Construction (EPC) companies
- B2B Marketplace: Its SunStore platform enables competitive pricing for solar equipment
This integrated approach has already enabled Aerem to facilitate more than 800 MW of solar capacity and finance over 800 projects across 65 Indian cities while building a network of 2,000+ installation partners.
Addressing the challenges in solar adoption, Anand Jain stated, “Getting a solar installation is complex for an Indian MSME or homeowner… Our end-to-end solution addresses the entire value chain, eliminating barriers to solar adoption.” His co-founder Vikesh Agrawal added, “We are building a true institution as ‘Aapka Solar Saathi’, partnering with businesses throughout their energy independence journey.”
Impressive Financial Performance
According to filings with the Registrar of Companies (RoC), Aerem has demonstrated remarkable financial growth. The company’s consolidated revenue from operations surged nine-fold to ₹175 crore in the financial year ending March 31, 2024 (FY24), compared to just ₹1.84 crore in the previous fiscal year.
Moreover, Aerem’s profitability has also improved, with net profit increasing by 26% to ₹3.57 crore for FY24 from ₹2.82 crore in FY23. These impressive financial metrics underscore the company’s efficient operational model and growing market traction.
Strategic Expansion Plans
The fresh capital will enable Aerem to pursue several strategic initiatives:
- Market Expansion: Increasing its footprint across existing markets in India
- Portfolio Growth: Expanding its solar financing offerings
- Technology Enhancement: Further development of its tech stack for the solar marketplace
- Operational Efficiency: Reducing customer acquisition costs through its installer network
- MSME Focus: Scaling adoption among micro, small, and medium enterprises
Siddharth Mehta, Partner at SE Ventures, emphasized the company’s unique value proposition: “Aerem’s full stack platform addresses the core friction points for solar installers, driven by an exceptional team across finance, tech, and innovation.”
Environmental and Economic Impact
Beyond its business growth, Aerem claims significant environmental and economic contributions. The company reports having prevented nearly 22 million tons of CO₂ emissions through its solar installations—equivalent to planting 53 million trees. Additionally, Aerem projects that its solutions will save approximately ₹14,000 crore in energy costs for Indian MSMEs over the lifetime of the installed projects.
India’s Solar Energy Landscape
Aerem’s growth is positioned within India’s rapidly expanding solar energy sector. Various government initiatives, including the Solar Park Scheme, Grid Connected Solar Rooftop Scheme, and Bundling Scheme, have provided significant momentum to the country’s solar equipment industry.
As of 2023, India ranked as the fifth-largest country globally in terms of solar equipment deployment, with an installed capacity of 70.10 GW. According to research projections, the Indian solar energy market is expected to reach a valuation of $50.4 billion by 2031, growing at a compound annual growth rate (CAGR) of 22%.
Investment Trends in Indian Cleantech
Despite the promising growth trajectory of India’s solar sector, investment trends in the broader cleantech space have shown some hesitancy. According to Inc42’s annual funding report, total funding in the cleantech sector declined by nearly 4% to $829 million in 2024 from $861 million in the previous year. The sector has experienced an even more substantial decline of almost 25% from the $1.1 billion invested two years ago.
Against this backdrop of cautious investor sentiment, Aerem’s successful funding round highlights its distinctive business model and execution capabilities that continue to attract capital even in a more selective investment environment.
Looking Ahead
With its comprehensive approach to distributed solar adoption, strong financial performance, and fresh capital infusion, Aerem appears well-positioned to accelerate India’s transition to clean energy. By addressing the financing, equipment, and implementation challenges faced by businesses and homeowners, the company is removing critical barriers to solar adoption across the country.
As India continues its push toward renewable energy targets and sustainable development goals, platforms like Aerem that offer end-to-end solutions will likely play an increasingly vital role in democratizing access to clean energy technologies and contributing to the nation’s energy security and environmental objectives.
