Indian SolarTech Platform Aerem Raises $5 Million to Fuel Rooftop Solar Revolution
– Aerem’s impact goes beyond financial performance with a Triple Bottomline approach that delivers significant positive social and environmental outcomes.
– Blume Ventures also participated in the funding round, along with prominent financial institutions providing debt financing of $1.5 million.
Mumbai, March 16, 2023: Aerem, India’s SolarTech leader, has announced a $5 million pre-Series A funding round led by Avaana Capital, a climate-tech investor. Blume Ventures also participated in the round, which includes debt financing of $1.5 million from prominent financial institutions.
The Mumbai-based Aerem plans to use the funds to expand its innovative solartech and financing solutions and establish an ecosystem that brings together all the stakeholders: financial institutions, engineering, procurement and construction (EPC) firms, and micro, small, and medium enterprises (MSMEs) for rooftop solar projects’ end-to-end solutions.
In 2021, Anand Jain, a Yale MBA who previously worked as an investment banker on Wall Street, founded Aerem to pursue his passion for solar power. Anand also worked with leading names in the solar and financial service industries, such as Lehman Brothers, SunEdison, and KPMG. The platform offers MSMEs 360-degree assistance in harnessing the power of solar energy and reducing their electricity costs by up to 70%. Aerem uses its extensive network of installers to aid in the deployment of high-quality rooftop solar systems. It also offers hassle-free loans through its in-house non-banking financial company (NBFC) and partner banks.
Aerem is driven by its unwavering commitment to democratize rooftop solar adoption and create a greener, more sustainable future. Aerem’s mission-driven approach emphasizes social, environmental, and financial outcomes equally, resulting in a Triple Bottomline impact.
On the announcement, Founder & CEO, Anand Jain said “The solar industry in India has been growing rapidly in recent years, driven by increased awareness of the benefits of renewable energy. India has set a target of ~300 GW of solar energy capacity by 2030, requiring both rooftop and utility-scale to fire. Aerem’s innovative solutions are well-positioned to capitalize on this trend and help accelerate the transition to a more sustainable future. This funding is a testament to the strength of our SolarTech & Financing platform and the value it provides to our customers. We remain committed to our mission of making solar financing more accessible and affordable for all, and we look forward to the continued support of our investors and partners in achieving this goal.”
Anjali Bansal, Founding Partner, Avaana Capital said “Rooftop solar will play a crucial role in India’s green growth transition. There are several enabling factors including declining technology cost curves, significant location advantage with 300 days of sunshine in a year, and increasing policy support such as net metering to progress towards the 50% renewable energy capacity targets. Aerem is building a unique technology-enabled platform to accelerate the adoption by MSMEs and enable them with energy access and independence, as well as equip MSME installers on the supply side. We’re excited to work with Anand and the rest of the Aerem team, and support them on this journey.”
Aerem’s primary focus is to overcome the obstacles that hinder small and medium enterprises (MSMEs) from adopting rooftop solar. They work in collaboration with installers to provide end-to-end solutions to MSMEs, thereby promoting the adoption of solar power in a transparent and accessible way. Aerem’s technology platform is proprietary, ensuring that the installation process is quality-checked, and it facilitates secure payments to installers.
India has the potential to become a global solar superpower, with an abundant source of solar energy, receiving over 5000 trillion kWh of energy from the sun every year. Despite this, India is heavily reliant on fossil fuels, with 60% of its energy coming from this source, leading to significant environmental consequences. However, India has made progress in solar power generation, ranking fourth globally in 2021, with a solar installed capacity of 49.3 GW by the end of the year, up from 2.63 GW in 2014. India’s solar power market share is also projected to increase by USD 240.42 billion from 2021 to 2026, at a CAGR of 35.24%. The solution to reducing India’s reliance on fossil fuels lies in rooftop solar implementation and development. India aims to achieve 50% of installed power capacity from renewable energy by 2030, and the installed capacity for solar energy is expected to reach 280 GW by 2030, requiring an investment of approximately USD 150 billion in solar.
As India’s leading solar tech platform, Aerem is working towards achieving this goal of providing clean, renewable energy to MSMEs across the country, delivering a Triple Bottomline impact, with a strong emphasis on social, environmental, and financial outcomes.