Aerem Solutions, a prominent distributed solar platform in India, has successfully secured $15 million in a pre-Series B funding round. The investment was led by SMBC Asia Rising Fund, the venture capital arm of Sumitomo Mitsui Banking Corporation, signaling strong international confidence in India's renewable energy sector. This latest infusion of capital brings the company's total funding to approximately $34.5 million, positioning it for accelerated growth and market expansion.
Strong Backing from New and Existing Investors
The funding round saw robust participation from Aerem's existing investors, including British International Investment (BII), UTEC, Blume Ventures, and Avaana Capital. The continued support from these key stakeholders underscores their belief in Aerem's mission and its full-stack business model. This financial endorsement is a testament to the company's consistent performance and its strategic importance in the evolving solar landscape.
Strategic Allocation for Nationwide Growth
The newly acquired funds are earmarked for a multi-faceted growth strategy aimed at strengthening Aerem's pan-India presence. A primary focus will be on expanding its extensive network of over 3,200 engineering, procurement, and construction (EPC) and installer partners across 150 cities. This expansion is crucial for enhancing service delivery and ensuring high-quality project execution at a national scale.
A significant portion of the investment will also be directed towards accelerating solar adoption among micro, small, and medium enterprises (MSMEs) and residential customers. Aerem plans to enhance affordability through innovative financing solutions and improve its technology platform for better post-installation performance visibility. According to CEO Anand Jain, this capital will empower the company's partners to execute superior quality projects across the country.
An Integrated Platform Driving Solar Adoption
Founded in 2021, Aerem operates a comprehensive platform that integrates solar financing, an equipment marketplace, and a sophisticated technology layer. This model simplifies the entire process of solar adoption, from system design and procurement to financing and ongoing asset monitoring. The company's holistic approach effectively removes key barriers for its target customers, including MSMEs, homeowners, and financial institutions.
Further strengthening its market position, Aerem acquired solar equipment distributor Spinkraft Ventures in 2024. This strategic acquisition has enabled the company to create a vertically integrated platform that spans the entire solar energy value chain. The move enhances operational efficiency and allows Aerem to offer a more seamless and comprehensive service to its growing customer base.
Demonstrated Impact and Market Leadership
To date, Aerem has made a substantial impact on India's renewable energy capacity, having enabled over 1,200 MW of solar power. The company has successfully financed more than 2,000 individual projects, which are collectively projected to generate lifetime energy cost savings of approximately $2.5 billion. These achievements highlight Aerem's pivotal role in making clean energy both accessible and economically viable for a wide range of consumers.
In conclusion, this $15 million funding round marks a significant milestone for Aerem Solutions, providing the necessary capital to scale its operations and deepen its market penetration. By focusing on technology, affordability, and partner enablement, the company is well-equipped to lead the next wave of distributed solar adoption in India. This strategic investment not only validates Aerem's innovative model but also reinforces its contribution to the nation's sustainable energy goals.