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Aerem Solutions Secures Rs 136 Crore in Pre-Series B Funding to Expand Distributed Solar Footprint in India

Aerem Solutions has raised Rs 136 crore (approximately $15 million) in a Pre-Series B funding round led by SMBC Asia Rising Fund, the venture capital arm of Sumitomo Mitsui Banking Corporation (SMBC). The round also saw continued participation from existing investors, including British International Investment (BII), University of Tokyo Edge Capital Partners (UTEC), Blume Ventures, Avaana Capital, Riverwalk Holdings, and SE Ventures, Schneider Electric’s venture capital arm.

The fresh capital will be used to strengthen Aerem’s technology-driven platform and deepen its engagement with engineering, procurement, and construction (EPC) partners and solar installers, while expanding its presence across India. The company aims to accelerate the adoption of distributed solar solutions among micro, small, and medium enterprises (MSMEs) as well as residential consumers by improving accessibility, affordability, and execution quality at scale.

According to Aerem, the funding will support efforts to enhance end-to-end enablement for partners, streamline project delivery, and build a more reliable and transparent distributed solar ecosystem nationwide.

Commenting on the development, Anand Jain, Founder and Chief Executive Officer of Aerem Solutions, said the partnership with SMBC comes at a critical juncture for India’s energy transition. He noted that distributed solar is increasingly central to the country’s energy independence and that Aerem’s integrated digital infrastructure—spanning finance, system design, procurement, and performance monitoring—addresses long-standing trust and execution challenges in the sector. The funding, he added, will enable EPC partners to deliver high-quality projects at a national scale.

Rajeev Kannan, Head of India Division and Managing Executive Officer at SMBC, said the SMBC Group is committed to supporting India’s sustainable economic growth through its financial expertise. He stated that Aerem’s integrated solar solutions—covering financing, marketplace platforms, and data-driven services—combined with SMBC’s financial capabilities, are well positioned to accelerate clean energy adoption across the country.

Despite favorable economics, with distributed solar power costing three to four times less than grid electricity and strong policy support in place, adoption in India remains limited. Distributed solar currently accounts for only about 20% of the country’s total solar capacity, compared to approximately 52% in the United States and nearly 57% in markets such as the United Kingdom and France, underscoring the significant growth potential in India, the company said.

Aerem highlighted that for MSMEs and homeowners, the transition to solar continues to be hindered by fragmented installer capacity, limited access to affordable financing, and insufficient visibility into post-installation performance. These challenges have contributed to inconsistent project quality, slower adoption, and suboptimal outcomes for customers, EPCs, and lenders.

The company addresses these structural issues through a unified, technology-led platform that integrates financing, procurement, system design, and lifecycle monitoring for distributed solar projects. By aligning incentives across stakeholders, Aerem aims to reduce execution risks while improving transparency, speed, and long-term asset performance.

To date, Aerem has facilitated more than 1,200 MW of solar installations across India and financed over 2,000 solar projects for MSMEs, residential consumers, and EPC partners. According to the company, these deployments are expected to deliver lifetime energy cost savings of approximately $2.5 billion.