Aerem, Indian SolarTech & Financing platform raises $5 Million Funding led by Avaana Climate Fund to Power India's Transition to Solar Energy

Aerem, Indian SolarTech & Financing platform raises $5 Million Funding led by Avaana Climate Fund to Power India's Transition to Solar Energy

Aerem, India's leading SolarTech platform, today announced the funding of $5 million (~ INR 41 crores) in Pre-Series A round led ​​by climate-tech investor Avaana Capital. The round also saw follow-on participation from Blume Ventures and it includes debt financing of $1.5 million from prominent financial institutions.

Mumbai-headquartered Aerem will utilize these funds to expand its suite of innovative solartech and financing solutions and build an ecosystem that brings together all the stakeholders - financial institutions; engineering, procurement and construction (EPC) companies; and businesses (MSMEs) — to enable end-to-end solutions for rooftop solar projects.

Aerem was founded in the year 2021 by Anand Jain, a Yale MBA, who worked as an investment banker on Wall Street and then came back to India to pursue his passion for Solar. Anand also worked with some of the prominent names in the solar & financial service industries like Lehman Brothers, SunEdison, KPMG and more. Aerem’s platform provides a 360-degree assistance to MSMEs to help them harness the power of solar energy and reduce their electricity costs by up to 70%. Aerem leverages its extensive network of installers to facilitate the implementation of high-quality rooftop solar systems. It also offers hassle-free loans through its in-house Non-Banking Financial Company (NBFC) and partner banks.

At Aerem, the driving force is its unwavering commitment to democratizing the adoption of rooftop solar and creating a greener, more sustainable future. As a result of its mission-driven approach, Aerem delivers a Triple Bottomline impact - it places equal emphasis on social, environmental, and financial outcomes.

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 focuses on resolving the obstacles that prevent small and medium enterprises (MSMEs) from adopting rooftop solar. They collaborate with installers and support MSMEs by providing them with end-to-end solutions thus enhancing the adoption of solar power in a transparent and accessible manner. Aerem's proprietary technology platform ensures that the installation process is checked for quality, and it facilitates secure payments to installers.

India has the potential to become a global solar superpower given its abundant source of solar energy, receiving more than 5000 trillion kWh of energy from the sun every year. Despite this, India still heavily relies 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 expected 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. Under India’s climate NDCs, 50% of installed power capacity is targeted to be achieved from Renewable energy by 2030 and Installed capacity for solar energy is projected to reach 280GW by 2030, representing ~USD 150 Bn in investment required in solar.

Aerem, as the leading solar tech platform in India, is working towards achieving this goal to provide clean, renewable energy to MSME’s across the country.


Source: Press Release