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SolarSquare, a financing and solar installation company, announced it had raised Rs 100 crore in a Series A round. The round was led by Elevation Capital as well as Lowercarbon, Chris Sacca’s multi-billion-dollar climate-tech fund.
This round saw participation from existing investors Good Capital, Rainmatter, Better Capital, and angels like Sanjeev Barnwal and Meesho’s Vidit Atrey.
The capital raised will be used to expand operations pan-India over the next 18-24 month. The company currently operates in Bengaluru, Delhi, Gujarat, Hyderabad, Madhya Pradesh and Maharashtra. SolarSquare intends to make significant investments towards launching an in-house NBFC that will provide 5-minute loan approvals for residential solar buyers.
The company plans to also develop technology across the board, such as a consumer app to monitor solar electricity generation and build robust back-end technology dashboards throughout the customer journey, from order booking to installation. Merchant side apps are also planned for installation and sales partners.
SolarSquare current team is approximately 200, but they are planning to increase the team to 300 by 2023. The company is also increasing its leadership recruitment.
The start-up will apply for an NBFC licence with the new funding within the next 18-24 month.
Shreya Mishra, co-founder and CEO, stated that solar is a great product but mass adoption will require financing. This is not a service that adds value, but it is a product that is linked to our core product. Only financing will bring about a market explosion. Similar trends were seen in China, the US, and even Australia.
“With the NBFC’s launch, we will now be able offer 5-year EMI financing. Customers can now opt for six-months of zero percent interest rates. She said that we will apply for NBFC licensure with this funding.