Solar energy financing firm Aerem has secured ₹1 billion (~$11.7 million) from Japan-based venture capital firm University of Tokyo Edge Capital Partners (UTEC) in a Series A funding round.

Other investors in the funding included British International Investment, SE Ventures, and Riverwalk Holdings.

Existing investors, Blume Ventures and Avaana Capital, also participated in this round.

The investment is in addition to debt capital from leading financial institutions, including IDFC, AU Small Finance, Axis Bank, Northern Arc, MAS Financials, and Vivriti Capital.

The funding will be utilized to drive the company’s distribution growth across India and solidify its presence in existing markets.

It will also be used to expand its end-to-end platform, scale its marketplace business, and broaden its lending portfolio to meet increasing demand.

The investment will also advance the company’s technology roadmap and enable the development of innovative financing solutions.

The company has an ecosystem of over 2,000 installation partners and has enabled more than 800 MW of solar capacity, successfully financing over 800 projects.

According to Anand Jain, Founder and CEO of Aerem, Indian MSMEs and homeowners find the process of finding the right solar installer at the right price, with the right quality, and with the right financing to be complex. He said Aerem addresses the entire value chain, eliminating barriers to solar adoption.

Aerem acquired solar equipment distributor Spinkraft Ventures in 2024 to create a platform spanning the entire solar energy value chain. Spinkraft deals in sales and distribution of solar products across India.

In 2023, Aerem secured $5 million (~₹413 million) in a pre-Series A funding round to help finance its product offerings. Avaana Capital, a climate technology investor, led the investment, with participation also from Blume Ventures.

According to Mercom’s Annual and Q4 2024 Solar Funding and M&A Report, global corporate funding in the solar sector in 2024 reached $26.3 billion, a 24% year-over-year decline from $34.4 billion.