Aerem bags $5m to tackle solar energy adoption in India

The Aerem management team/ Photo credit: Aerem

Aerem, a solartech and financing platform based in India, has secured US$5 million in its pre-series A round led by Avaana Capital, with Blume Ventures participating. The amount includes US$1.5 million in debt financing.

Headquartered in Mumbai, the firm last raised US$2.5 million in July 2022.

Founded in 2021 by Anand Jain, a former investment banker at Lehman Brothers, Aerem aims to boost solar power adoption by providing financing solutions for solar rooftop installations. The company offers a digital platform that allows clients to access loans from its network of non-bank financial companies and partner banks.

The startup wants to reduce the burden of installing solar power systems by providing both technical and financial assistance to clients at the initial stage. Aerem says it helps micro, small, and medium-sized enterprises reduce their energy costs by up to 70%.

The firm will use the fresh funds to develop its ecosystem of businesses – including engineering, and procurement, and construction (EPC) companies – and financial institutions.

India is projected to be the world’s most populous country by 2027 and its energy demands are expected to increase substantially. The local solar power market is also expected to grow by US$240.42 billion by 2026 at a compound annual growth rate of 35.24%.