Aerem Solutions Raises USD 15 Million in Pre-Series B Funding Led by SMBC to Expand Distributed Solar Platform in India

Aerem Solutions, a full-stack platform focused on distributed solar adoption in India, has raised USD 15 million (around INR 136 crore) in a Pre-Series B funding round led by the SMBC Asia Rising Fund, the venture capital arm of Japan-based Sumitomo Mitsui Banking Corporation (SMBC). The round also saw continued participation from existing institutional investors, including British International Investment (BII), The University of Tokyo Edge Capital Partners (UTEC), Blume Ventures, Avaana Capital, Riverwalk Holdings, and SE Ventures, the venture arm of Schneider Electric.

Founded in 2021 and headquartered in Mumbai, Aerem Solutions operates as an integrated distributed solar platform that combines solar financing, a marketplace for equipment, and a technology-driven system supporting project design, procurement, financing, and asset monitoring. The company is led by Founder and Chief Executive Officer Anand Jain and Co-founder and Head of NBFC Vikesh Agrawal, who bring experience across renewable energy and financial services. Aerem primarily serves MSMEs, solar installers, and financial partners, aiming to simplify and accelerate the deployment of high-quality distributed solar projects across the country.

According to the company, the newly raised capital will be used to strengthen its end-to-end platform capabilities, deepen engagement with EPC and installer partners, and expand its pan-India presence. Aerem also plans to accelerate adoption among MSMEs and homeowners by improving access to financing, enhancing affordability, and ensuring consistent execution quality at scale.

Despite favourable economics and policy support, distributed solar adoption in India remains limited, contributing only about 20 percent of the country’s total installed solar capacity. This compares with significantly higher shares in more mature markets such as the United States, the United Kingdom, and France. Industry experts attribute the slower uptake in India to structural challenges, including fragmented installer capacity, limited access to affordable financing, and insufficient post-installation performance visibility, which have collectively created a trust deficit across the ecosystem.

Commenting on the investment, Rajeev Kannan, Head of India Division and Managing Executive Officer at SMBC, said the bank is committed to supporting India’s sustainable economic growth through its financial expertise. He added that Aerem’s integrated approach—spanning financing, marketplace platforms, and data-driven services—combined with SMBC’s financial capabilities, is expected to play a key role in accelerating clean solar energy adoption in the country.

Aerem stated that it addresses market inefficiencies through a single, technology-led platform that integrates financing, procurement, system design, and lifecycle monitoring for distributed solar projects. By aligning incentives across EPCs, financial institutions, and end customers, the platform aims to reduce execution risks, improve transparency, and enhance long-term asset performance. The company’s network of verified installation partners enables local market penetration while maintaining a capital-efficient and scalable operating model.

Welcoming SMBC as a strategic partner, Anand Jain said the investment comes at a time when distributed solar is becoming increasingly important to India’s energy independence. He noted that integrating finance, design, procurement, and monitoring into a unified digital infrastructure helps address long-standing trust and execution challenges in the sector, while equipping EPC partners to deliver projects at a national scale.

Aerem reported that it has enabled more than 1,200 MW of solar capacity across India to date and has financed over 2,000 solar projects for MSMEs, homeowners, and EPC partners. The company estimates that these projects have generated lifetime energy cost savings of approximately USD 2.5 billion. Its ecosystem includes over 3,200 verified installation partners operating across more than 150 cities nationwide. Collectively, Aerem said its activities have helped avoid around 35 million tonnes of lifetime carbon dioxide emissions, highlighting its contribution to India’s clean energy transition.