Mumbai-based solar financing startup Aerem secures ₹100 Cr ($12 Mn) in a Series A funding round led by Japan’s University of Tokyo Edge Capital Partners (UTEC). Investors include British International Investment, SE Ventures, Riverwalk Holdings, Blume Ventures, and Avaana Capital. The startup also raised debt funding from IDFC, AU Small Finance, Axis Bank, Northern Arc, MAS Financials, and Vivriti Capital. Founded in 2021 by Anand Jain and Vikesh Agrawal, Aerem provides solar installation loans and supply chain financing via its NBFC arm, NetZero Finance. The funding will help expand its market presence, enhance its solar marketplace, and grow its lending portfolio. Aerem’s revenue surged 9X in FY24, reaching ₹175 Cr, with a 26% rise in net profit. India’s solar market, projected to hit $50.4 Bn by 2031 at a 22% CAGR, continues growing due to government policies despite declining cleantech investments.
1. Aerem’s Business Model and Revenue Generation
1.1 Working Model Aerem operates as a solar financing platform that helps businesses and homeowners install solar power systems. It provides financial assistance and supply chain financing solutions through its NBFC arm, NetZero Finance.
1.2 Revenue Model The startup earns revenue through interest on loans, marketplace commissions from its B2B platform SunStore, and financial services fees. Its business model supports solar equipment manufacturers, engineering procurement and construction (EPC) companies, and end users.
1.3 Founders and Their Background Aerem was founded by Anand Jain and Vikesh Agrawal. Anand Jain has extensive experience in financial services and solar energy, while Vikesh Agrawal specializes in technology-driven business solutions.
1.4 Services and Products Offered Aerem provides loans for solar installations, supply chain financing, and access to competitively priced solar equipment via SunStore.
2. Funding Journey and Financial Growth
2.1 Previous Funding Rounds Before this Series A round, Aerem raised $5 Mn in a Pre-Series A round led by Avaana Capital.
2.2 Solar Financing Startup Aerem Secures ₹100 Cr in Funding. Recent Funding Round The Series A round, led by UTEC, raised ₹100 Cr, including debt from major financial institutions.
2.3 Financial Performance Aerem’s revenue from operations increased from ₹1.84 Cr in FY23 to ₹175 Cr in FY24, with a net profit rise from ₹2.82 Cr to ₹3.57 Cr.
3. Market Trends and Industry Insights
3.1 Indian Solar Energy Market India ranks as the 5th largest solar market, with 70.10 GW capacity as of 2023. The market is projected to reach $50.4 Bn by 2031, growing at a 22% CAGR.
3.2 Government Support for Solar Energy Schemes like the Solar Park Scheme and Grid Connected Solar Rooftop Scheme have driven industry growth.
3.3 Cleantech Investment Trends Despite government initiatives, cleantech investment has declined. Total funding fell 4% to $829 Mn in 2024, a 25% drop from $1.1 Bn in 2022.
4. Learning for Startups and Entrepreneurs
4.1 Importance of Niche Focus Aerem’s success shows the value of focusing on a niche market with high growth potential.
4.2 Combining Finance with Sustainability The startup demonstrates the power of blending financial services with sustainability to attract investment.
4.3 Leveraging Government Policies Government initiatives can provide growth opportunities for startups in regulated sectors.
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