With the help of current investors Zerodha’s Rainmatter Capital, Abhijeet Pai and Nikhil Kamath’s Gruhas Proptech, Lowercrabon Capital, Climate Angels, and Good Capital, rooftop solar startup SolarSquare has raised $4.2 million.
According to SolarSquare’s regulatory filing, the board of directors approved a special resolution to issue 7,589 Series B compulsory convertible debentures at an issue price of Rs 46,710 in order to raise Rs 35.44 crore.
While Gruhas Proptech and Rainmatter contributed separately Rs 6.22 crore and Rs 3.98 crore, respectively, Lowercarbon and Good Capital invested Rs 20.74 crore and 3.32 crore.
As stated in the filings, the funds will be utilized for general corporate purposes, working capital needs, and expansion.
The filings also stated that investors are considering the conversion of each debenture issue during the round into a preference share at the next qualified funding round, with a valuation of $75 million.
The company’s post-allotment valuation, according to media estimates, is approximately Rs 394 crore, or $48 million. In this round, the company is probably going to raise more money, and after the last tranche, the valuation might change.
Including its Rs 100 crore ($12 million) Series A round led by Elevation Capital and Lowercarbon in November 2022, SolarSquare has raised over $20 million to date.
As per media reports, Elevation Capital holds 14.99% of the stake, while Lowercrabon holds 20.29%, making it the largest external stakeholder. In SolarSquare, Rainmatter and Gruhas Proptech hold 3.84% and 2.50% of the shares, respectively.
Neeraj Jain and Nikhil Nahar founded SolarSquare, a company that designs, installs, and finances residential rooftop solar systems. For residential communities and business buildings, it also offers rooftop solar solutions.
The company has not yet submitted its FY24 financial statements; however, in FY23, its operating revenue increased by 35.4% to Rs 107 crore. In the same period, it reported a loss of Rs 35 crore.
Zunroof, Cleantech, Mysun, Oorjan, and Freyr Energy are some of the rivals of SolarSquare.
The utility scale solar power industry expert PV Diagnostics was acquired by the company in February.
