Distributed Solar Startup Aerem Raises Rs 100 Crores

Aerem, a solar platform dedicated to simplifying solar adoption for businesses and households, has announced that it has secured ₹100 crore in Series A round led by UTEC (University of Tokyo Edge Capital Partners), the Japan-based $700 million venture firm.  The funds will drive the company’s expansion across India and enhance its solar financing and marketplace solutions.

Other prominent investors included British International Investment (BII), the UK’s development finance institution and impact investor; SE Ventures, the $1 billion+ climate and industrial tech fund backed by Schneider Electric; and Riverwalk Holdings, an early-stage venture fund focused on innovative fintech firms. Existing investors Blume Ventures and Avaana Capital also participated in this round. The strategic equity investment of ₹100 crore is in addition to debt capital from leading financial institutions such as IDFC, AU Small Finance, Axis Bank, Northern Arc, MAS Financials, and Vivriti Capital.

The Series A funding will drive the company’s distribution growth across India and solidify its presence in existing markets. It will also fuel the expansion of its end-to-end platform, scaling its marketplace business and broadening its lending portfolio to meet increasing demand.

Additionally, the investment will advance the company’s technology roadmap and enable the development of innovative financing solutions, furthering its mission to make solar energy more accessible. 

When founded, Aerem set out to tap India’s untapped distributed solar potential, which currently represents only 17% of total solar capacity compared to the global average of over 50%. The company addresses this significant market gap by providing an end-to-end solar solution.

Anand Jain, Founder and CEO, Aerem, said “Getting a solar installation is complex for an Indian MSME or homeowner. From finding the right installer to the right price, right quality, and right financing, there exists a massive trust deficit throughout the fragmented ecosystem. Conventional approaches treat financing, technical complexity, and supply chain barriers as separate challenges. We recognize these as interlocking parts of one ecosystem failure. Our end-to-end solution addresses the entire value chain, eliminating barriers to solar adoption.”

“Our installation partners are the backbone of our ecosystem. These solar entrepreneurs understand local markets, maintain customer relationships, and provide on-ground implementation. Through our platform, we empower them with access to financing, quality equipment, and digital tools they would not otherwise have—creating a win-win model that scales solar adoption while supporting local businesses. Our vision goes beyond just providing solar solutions—we are building a true institution as ‘Aapka Solar Saathi’ which partners with businesses throughout their energy independence journey.” said Vikesh Agarwal, Co-Founder and COO, Aerem.

By building a nationwide ecosystem of 2,000+ installation partners, Aerem has unlocked scalable distribution while minimizing acquisition costs. In just three years, it has emerged as a leader in India’s distributed solar sector, with a presence across 65 cities and a robust partner network. The company has enabled over 800 MW of solar capacity and successfully financed more than 800 projects. These installations are projected to save ₹14,000 crore in energy costs for MSMEs over their lifetime.