SolarSquare eyes $500 million valuation in Series C as India’s residential solar sector heats up
Co-led by B Capital and Lightspeed Venture Partners, the round marks a significant re-rating for the startup, which has pivoted its focus toward high-margin residential installations and housing societies.
SolarSquare, a Mumbai-based rooftop solar startup, is in advanced negotiations to raise between $55 million and $60 million in a Series C funding round. The deal, co-led by B Capital and Lightspeed Venture Partners with participation from existing investor Elevation Capital, is expected to close next month. The financing could value the company at between $450 million and $500 million, more than doubling its post-money valuation of approximately $200 million recorded in December 2024.
Lightspeed Venture Partners is participating through its growth fund, which previously backed Indian digital payments leader Razorpay and quick-commerce startup Zepto. This marks a second round of investment from Lightspeed, which led the company’s $40 million Series B in late 2024. The rapid escalation in valuation underscores growing institutional conviction in India’s residential solar market, a sector supported by the government’s target of achieving 500 gigawatts of renewable energy capacity by 2030.
The startup has installed over 150 megawatts of solar capacity across 29 cities in nine states, powering nearly 50,000 homes and approximately 400 housing societies. According to sources familiar with the company’s operations, residential customers and housing societies now constitute the majority of SolarSquare’s business. The firm has strategically scaled back lower-margin industrial rooftop solar projects to concentrate on the residential segment, where it has achieved an annualised revenue run rate exceeding ₹10 billion ($104 million).
SolarSquare’s enterprise portfolio includes deployments for major brands such as Swiggy, Zepto, and iD Fresh Food. The company aims to expand its residential solar portfolio to 200 megawatts within the current year. Founded in 2015, SolarSquare positions itself as a full-stack platform in a fragmented market historically dominated by small local installers and dealer networks tied to component manufacturers like Tata Power and Waaree Energies.
India has emerged as the world’s third-largest solar power producer, trailing only China and the United States. Cumulative installed solar capacity has surged from roughly 3 gigawatts in 2014 to more than 150 gigawatts in 2026, driven by government incentives and subsidy schemes. SolarSquare has raised a total of $61.1 million in equity financing to date, according to data platform Tracxn. The company declined to comment, and the lead investors did not respond to requests for comment.
