Temasek supports Sweden’s clean energy technology company Aira’s $175 M investment

Direct-to-consumer clean energy technology from Sweden Aira has obtained equity financing of €150 million ($175 million) to expedite the electrification of residential heating in Europe.

In a statement released on Monday, the company stated that Altor, Kallskär¹, Kinnevik, Lingotto, and Temasek, its current investors, had secured the investment.

Aira’s operations will scale up more quickly thanks to the equity, and its intelligent clean energy-tech offering will grow.

In order to expand its integrated product line and boost production at its Wroclaw, Poland, factory, Aira will invest in its Swedish research and development (R&D) center.

In order to increase market presence and provide customers with greater cost savings, Aira will simultaneously expand its presence in current markets and fortify strategic alliances with important companies in the home and energy sectors.

With an annual sales run-rate of €200 million ($233.71 million), Aira has quickly established itself as a leading clean energy-tech company in Europe since its June 2023 launch and has since expanded into Germany, Italy, and the UK.

With a monthly payment plan, end-to-end service, and a 15-year Aira Guarantee, Aira provides an unrivaled customer experience.

With 1,200 employees today, the company has established four Aira Academies and 18 hubs to train highly qualified heat pump installers throughout Europe.

“This investment reflects the strong, long-term support of our investors and enables us to build on the substantial foundation we’ve established as we transition from a start-up to scale-up,

“It empowers us to double down on our mission to take Europe off gas by expanding with operational excellence, launching new innovations, and accelerating our growth to bring clean energy-tech to millions of homes,” said Peter Prem, Aira Group Chief Executive Officer.

Residential heating is the third-largest source of carbon dioxide (CO₂) emissions in Europe, accounting for 10% of total emissions, with 130 million boilers still in use.

People can cut their household heating expenses by up to 40% and their CO2 emissions by up to 100% with clean energy tariffs by converting from a gas boiler to an air source heat pump using Aira’s creative and easily accessible clean energy-tech solution.

“The European heat pump market is expected to reach more than €150 billion ($175 million) by 2030, and with our vertically integrated model and world-class products, Aira is uniquely positioned to transform home energy across Europe,” said Prem.

“Backed by world-class investors, we’re building a clean energy-tech leader with expert teams and a clear mission to decarbonize residential heating, all while lowering energy bills and increasing household comfort for millions,

“We’re just getting started. Aira is ready to lead the clean energy transition – one home at a time,” he added.