Clean energy technology startup Aira today announced it has raised €145 million (US$158 million) in a Series B funding round aimed at increasing electrification and reducing gas use in European home heating.
Aira says the funding round was significantly oversubscribed and increased from its original target of €85 million.
Founded in 2022 by impact company builder Vargas and based in Stockholm, Sweden, Aira provides clean energy technology solutions aimed at accelerating the electrification of residential heating, including high-efficiency heat pumps.
Heat pumps are rapidly gaining popularity as an important energy-efficient, climate-friendly alternative to furnaces and air conditioners, lowering greenhouse gas emissions and reducing reliance on fossil fuels. According to the European Commission Joint Research Centre, there are nearly 90 million fossil fuel-based residential boilers in use. Aira said switching from a gas boiler to an air source heat pump using clean energy solutions can reduce home heating costs by up to 40% and CO2 emissions by 75%, and by 100% when using fossil-free energy to power the heat pump.
The company said the fresh funds will be used for market expansion in Italy, Germany and the UK, introducing affordable monthly payment models for European homeowners, expanding the company’s portfolio with products and services such as intelligent heat pumps, solar panels, battery storage and electricity tariffs, as well as research and development aimed at providing easy-to-use, customer-centric clean energy technology solutions.
The company also announced that it has received a €15 million grant from the Polish government to set up a state-of-the-art manufacturing site for producing heat pumps in Poland.
The Series B round was led by Altor, Kinnevik and Temasek, with participation from the Burda family, Collaborative Fund, Creades, Lingotto, Nesta Impact Investments and Statkraft Ventures.
Aira Group CEO Martin Leworth said:
“We are thrilled to welcome our new shareholders. As well as capital, they bring invaluable strategic insight, networks and expertise. Together we are committed to spearheading the long-awaited green revolution in home heating. With our Series B funding now complete, we are well capitalised and ready to accelerate the expansion of our platform across Europe, enabling significant savings in heating costs and carbon emissions for homes across Europe.”