Aerem, an Indian solar financing firm, has acquired solar equipment distributor Spinkraft Ventures to create a platform spanning the entire solar energy value chain.

The company did not disclose details about the cost of the acquisition.

Founded in 2021, Spinkraft deals in sales and distribution of solar products across India. By bringing Spinkraft into the fold, Aerem aims to leverage its distribution capabilities to provide complete solar solutions to customers.

“With the combined strength of Aerem and Spinkraft, we are poised to accelerate the adoption of solar energy in India,” said Anand Jain, CEO of Aerem Solutions.

In addition to its commercial solar financing arm NetZero Finance, Aerem offers proprietary software tools to streamline solar projects. Spinkraft’s team will now gain access to these technology platforms and processes and systems to scale operations rapidly.

Aerem is backed by Blume Ventures and climate-technology investor Avaana Capital.

Last year, the investment firms helped Aerem secure $5 million (~₹413 million) in a pre-Series A funding round to finance its upcoming product offerings. The funding round involved $1.5 million (~₹123.92 million) in debt financing from financial institutions.

Aerem, at the time, had said it would use the funds to broaden its range of solar tech and financing options. It also aimed to establish a network that brings together financial institutions, engineering, procurement, and construction firms, and micro, small, and medium enterprises (MSMEs) to facilitate complete solutions for rooftop solar projects.

Earlier, Aerem had raised $2.5 million (~₹207 million) in pre-Series A funding to develop its technology platform.

The solar sector secured $8.1 billion in corporate funding through 41 transactions in the first quarter of 2024, marking a 4% decrease from the $8.4 billion raised in 42 deals during the same period in 2023. However, there was a 47% increase in funding compared to the fourth quarter of 2023, which saw $5.5 billion raised in 37 deals.

The numbers were revealed in Mercom Capital Group’s newly released Q1 2024 Solar Funding and M&A Report.