Avaana Capital, an investor in climate technology, sponsored a pre-series A round that raised $5 million (about Rs 41 crores) for the solartech platform Aerem. Blume Ventures continued to participate in the round, and it includes $1.5 million in loan financing from reputable financial institutions.

To enable end-to-end solutions for rooftop solar projects, the Mumbai-based business said it will use the funds to increase the scope of its innovative solartech and financing solutions. It will also create an ecosystem that unites all the stakeholders, including financial institutions, engineering, procurement, and construction (EPC) firms, and small and medium-sized enterprises (MSMEs).

Founded in 2021 by Anand Jain, the company provides assistance to MSMEs to harness the power of solar energy and reduce their electricity costs by up to 70%. The company also offers loans through its in-house Non-Banking Financial Company (NBFC) and partner banks.

“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," Jain said. The firm collaborates with installers and supports MSMEs by providing them with end-to-end solutions for the adoption of solar power.

Rooftop solar will be essential to India's shift to green growth. In order to advance towards the 50% renewable energy capacity targets, there are a number of enabling factors, such as declining technology cost curves, a significant location advantage with 300 days of sunshine annually, and growing policy support like net metering, according to Anjali Bansal, founding partner of Avaana Capital. The market share of solar energy in India is anticipated to grow by $240.42 billion between 2021 and 2026 at a CAGR of 35.24%.