Exclusive: SolarSquare raises fresh funds from Zerodha's Rainmatter, Gruhas, others

Rooftop solar startup SolarSquare has raised $4.2 million from existing investors Zerodha's Rainmatter Capital, Abhijeet Pai and Nikhil Kamath’s Gruhas Proptech, Lowercrabon Capital, Climate Angels and Good Capital.

The board at SolarSquare has passed a special resolution to allot 7,589 Series B compulsory convertible debentures at an issue price of Rs 46,710 to raise Rs 35.44 crore, its regulatory filing shows.

Lowercarbon and Good Capital invested Rs 20.74 crore and 3.32 crore while Gruhas Proptech and Rainmatter separately pumped in Rs 6.22 crore and Rs 3.98 crore, respectively.

The funding will be used for the expansion, working capital requirements, and general corporate purposes, according to the filings.

Every debenture issue during the round will be converted into a preference share at the next qualified funding round and the investors are considering the same to take place at a valuation of $75 million, the filings further added.

As per TheKredible estimates, the company has been valued at around Rs 394 crore or $48 million post-allotment. The company is likely to raise more funds in this round and the valuation may vary after the final tranche.

SolarSquare has raised over $20 million to date including its Rs 100 crore ($12 million) Series A round led by Elevation Capital and Lowercarbon in November 2022.

According to the startup data intelligence platform TheKredible, Lowercrabon is the largest external stakeholder with 20.29% followed by Elevation Capital which holds 14.99%. Rainmatter and Gruhas Proptech own 3.84% and 2.50% respectively in SolarSquare.

Head to TheKredible for the complete shareholding pattern.

Founded by Neeraj Jain and Nikhil Nahar, SolarSquare designs, installs, and finances rooftop solar systems for homes. It also provides rooftop solar solutions for housing societies and commercial establishments.

The company is yet to file its financial statements for FY24 but its revenue from operations grew 35.4% to Rs 107 crore in FY23. It posted Rs 35 crore loss in the same period.

SolarSquare competes with Zunroof, Cleantech, Mysun, Oorjan, and Freyr Energy, among others.

In February, the company acquired PV Diagnostics, a company with expertise in the utility scale solar power sector.

Update: The story and headline have been updated to reflect Zerodha Technology as Zerodha's Rainmatter Capital.