Aerem Solutions, an end-to-end platform for distributed solar, has raised $15 million in a Pre-Series B funding round led by SMBC Asia Rising Fund, the venture capital arm of Sumitomo Mitsui Banking Corp. (SMBC). The round also saw continued participation from existing institutional investors, including British International Investment (BII), The University of Tokyo Edge Capital Partners (UTEC), Blume Ventures, Avaana Capital, Riverwalk Holdings, and SE Ventures (the venture arm of Schneider Electric).
The fresh capital will be strategically deployed to strengthen Aerem’s end-to-end capabilities by deepening enablement across EPC and installer partners and further expanding its pan-India footprint. In parallel, the company will focus on accelerating adoption among MSMEs and homeowners by improving access to distributed solar solutions, enhancing affordability, and ensuring high-quality, reliable execution at scale.
“Even with compelling economics—where distributed solar power is three to four times cheaper than grid electricity—and strong policy support, adoption in India continues to lag due to structural barriers. Today, distributed solar contributes only around 20% of India’s total solar capacity, in sharp contrast to more mature markets such as the U.S. (~52%) and the U.K. and France (~57%). This highlights the significant headroom for growth in the Indian market,” the company said.
“For MSMEs and homeowners, going solar remains complex and opaque. Fragmented installer capacity, limited access to affordable financing, and weak post-installation performance visibility have created a significant trust deficit across the ecosystem. These gaps continue to result in inconsistent project quality, slower adoption, and sub-optimal asset outcomes for customers, EPCs, and lenders alike.”
Aerem addresses these structural market challenges through a single, technology-led platform that integrates financing, procurement, design, and lifecycle monitoring for distributed solar projects. By aligning incentives across EPCs, financial institutions, and end customers, Aerem materially reduces execution risk while improving speed, transparency, and long-term asset performance at scale.
To date, Aerem has enabled over 1,200 MW of solar capacity across the country and financed more than 2,000 solar projects spanning MSMEs, homeowners, and EPC partners. Its nationwide ecosystem includes over 3,200 verified installation partners operating across more than 150 cities.
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