SolarSquare in Talks to Raise Up to $60 Million as India's Rooftop Solar Sector Draws VC Attention

SolarSquare, a Mumbai-headquartered rooftop solar startup, is in advanced discussions to close a Series C funding round of $55 million to $60 million, according to multiple people familiar with the matter, underscoring the rapid buildup of investor conviction around India's residential solar market.

B Capital and Lightspeed Venture Partners are set to co-lead the round, which could value the company at between $450 million and $500 million, the sources said. Existing investor Elevation Capital is also expected to participate. The deal is expected to close next month, though the terms could still change as the financing has not yet been finalized.

If the valuation holds, it would represent more than a doubling of SolarSquare's worth in roughly 18 months. Lightspeed previously led the company's $40 million Series B round in December 2024 at around a $200 million post-money valuation — at the time India's largest solar venture investment. This time, Lightspeed is investing through its growth fund, which has also backed Indian digital payments platform Razorpay and quick-commerce startup Zepto.

SolarSquare has raised $61.1 million in equity financing to date, according to startup data platform Tracxn.

Founded in 2015, SolarSquare operates as a full-stack residential solar platform, designing, installing, and maintaining rooftop systems for homes, housing societies, and enterprises. The company has installed more than 150 megawatts of solar capacity across 29 cities in nine states and has powered nearly 50,000 homes and approximately 400 housing societies, a source said. Enterprise clients include Swiggy, Zepto, and iD Fresh Food.

Residential customers and housing societies now account for a majority of SolarSquare's business, as the startup has scaled back lower-margin industrial projects in recent years. The company has crossed an annualized revenue run rate of more than ₹10 billion — roughly $104 million — across homes and housing societies combined, according to a source familiar with its operations. It aims to grow its residential solar portfolio to 200 megawatts this year.

The fundraise comes against a backdrop of accelerating growth in India's solar sector. The country became the world's third-largest solar power producer in 2025, trailing only China and the United States. Cumulative installed solar capacity has surged from approximately 3 gigawatts in 2014 to more than 150 gigawatts in 2026, aided by government incentive programs and subsidy schemes targeting rooftop adoption. India has set a national target of 500 gigawatts of renewable energy capacity by 2030, with solar expected to contribute more than half of that total.

Despite that expansion, the market remains fragmented, dominated by small local installers and dealer networks tied to component manufacturers such as Tata Power, Waaree Energies, Luminous Power Technologies, and Exide Industries — a structural reality SolarSquare is positioning itself to disrupt.

SolarSquare declined to comment. B Capital, Lightspeed Venture Partners, and Elevation Capital did not respond to requests for comment.

With the Series C expected to close in June, the round would give SolarSquare additional capital to pursue its residential growth targets at a moment when both policy tailwinds and investor appetite in India's clean energy space continue to build.

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