Aerem Solutions, one of India’s leading full-stack platforms for distributed solar energy, has raised USD 15 million (INR 136 crore) in a Pre-series B funding round led by the SMBC Asia Rising Fund, the venture capital arm of Sumitomo Mitsui Banking Corporation (SMBC). This investment was also backed by existing investors including British International Investment (BII), The University of Tokyo Edge Capital Partners (UTEC), Blume Ventures, Avaana Capital, Riverwalk Holdings, and Schneider Electric’s SE Ventures.
Founded in 2021 and headquartered in Mumbai, Aerem is revolutionizing India’s solar energy market by offering a comprehensive platform that combines financing, a marketplace for solar equipment, and a technology-driven approach to support the deployment of distributed solar solutions. The company is led by CEO Anand Jain and co-founder Vikesh Agrawal, both of whom bring extensive expertise in renewable energy and financial services.
The new funding will allow Aerem to enhance its operations across India, with a specific focus on strengthening its partnerships with EPC (Engineering, Procurement, and Construction) contractors and installers. The company aims to expand its footprint and make solar energy more accessible, affordable, and reliable for micro, small, and medium enterprises (MSMEs), homeowners, and installers alike. This funding will help address the various structural barriers that have hindered broader adoption of solar energy in the country.
Despite compelling economics, where distributed solar power is 3-4 times cheaper than grid electricity, adoption in India remains limited. Currently, distributed solar accounts for just 20% of India’s total solar capacity, compared to more mature markets like the U.S. (~52%), U.K., and France (~57%). The slow pace of adoption is due to several factors, including fragmented installer capacity, limited access to financing, and a lack of visibility into post-installation performance. These gaps result in suboptimal asset performance and slower market penetration.
Aerem’s approach addresses these challenges by integrating financing, procurement, system design, and monitoring into a unified digital platform. This end-to-end solution provides transparency, reduces execution risks, and accelerates the adoption of distributed solar. By aligning the incentives of all stakeholders – including EPCs, financial institutions, and end customers – Aerem improves project speed, quality, and long-term performance.
According to Rajeev Kannan, Head of India Division at SMBC, “SMBC Group is committed to fostering the sustainable growth of the Indian economy through its financial expertise. We believe that Aerem’s integrated solutions, which combine financing, marketplace platforms, and data-driven services, will be pivotal in accelerating the adoption of clean solar energy in India.”
Aerem’s progress to date is impressive. The company has enabled over 1,200 MW of solar capacity and financed more than 2,000 solar projects for MSMEs, homeowners, and EPC partners. These projects have generated lifetime energy cost savings of approximately USD 2.5 billion and have helped avoid around 35 million tonnes of CO₂ emissions. The company operates across 150+ cities, with a network of over 3,200 verified installation partners, creating a truly national presence.
Anand Jain, Founder and CEO of Aerem Solutions, emphasized the importance of the company’s holistic approach to solar energy: “We are privileged to welcome SMBC as a strategic partner at a time when distributed solar is becoming central to India’s energy independence. By integrating finance, design, procurement, and monitoring into a single digital infrastructure, we are removing the ‘trust deficit’ that has historically fragmented the market. This funding enables us to provide the tools our EPC partners need to execute high-quality projects at national scale.”
Aerem’s work is poised to make a significant impact on India’s clean energy transition. As the demand for renewable energy solutions grows, Aerem’s platform is helping the country move closer to its ambitious sustainability goals, while also providing scalable solutions for businesses and homeowners alike.
With a strong market momentum and a clear path to growth, Aerem is well-positioned to lead the charge in India’s renewable energy sector, making distributed solar energy more accessible and reliable for millions of people across the nation.
About Aerem Solutions:
Founded in 2021, Aerem Solutions is a full-stack distributed solar platform based in Mumbai, India. The company combines solar financing, a marketplace for solar equipment, and technology-led solutions to accelerate solar adoption for MSMEs, homeowners, and installers. Aerem is focused on removing structural barriers to solar energy adoption in India and is committed to making clean energy more affordable, accessible, and reliable.
About SMBC Group:
Sumitomo Mitsui Banking Corporation (SMBC) is one of the largest financial institutions globally, with a focus on providing comprehensive financial services that support economic and sustainable growth. Through its Asia Rising Fund, SMBC aims to foster innovation and sustainability in emerging markets, with a particular emphasis on renewable energy solutions.
