The largest venture capital raise in India's solar sector has been secured by solar startup SolarSquare, which has secured $40 million in its Series B funding.

Lightspeed led the round, which included investments from Lightrock, Elevation Capital, Chris Sacca's Lowercarbon, Nithin Kamath's Rainmatter and Gruhas Proptech.
The new cash will be used to expand its operations to 50 cities in India, upgrade technology, recruit talent, and invest in building its brand, according to a press release.

SolarSquare was founded by Neeraj Jain and Nikhil Nahar and designs, installs, and finances rooftop solar systems for homes. It offers solar solutions for apartment complexes and industrial buildings. Over 20,000 houses and more than 200 co-operative housing societies have joined the SolarSquare family since its inception in India.
The utility-scale solar power sector was the focus of the company's acquisition in February.

Prior to this round, SolarSquare had raised $19.5 million across three funding rounds, backed by prominent angel investors including Meesho's Vidit Atrey and Sanjeev Barnwal, NoBroker's Amit Agrawal, Saurabh Garg, and Ak.

Revenue from operations grew 35.4% to Rs. 107 crore in FY23, even though the company has yet to file its financial statements for FY24. A loss of Rs. 35 crore was recorded during the same period.

The company competes with players like Zunroof, Cleantech, Mysun, Oorjan, and Freyr Energy. There are notable rounds such as Glow's $30 million and InSolare's $8 million that have reignited interest in the sector.