Stockholm-based Aira has successfully raised €145 million in a Series B funding round, with notable investors including Altor, Kinnevik, and Temasek. The funding, significantly surpassing its initial €85 million target, demonstrates robust support from leading climate tech investors across Europe, the US, and Asia. The oversubscribed round also saw participation from the Burda family, Collaborative Fund, Creades, Lingotto, Nesta Impact Investments, and Statkraft Ventures. This brings the total equity funding and grants secured by Aira to €195 million.
The funds will be strategically utilized to further accelerate the electrification of residential heating in Europe, particularly in Italy, Germany, and the UK. The company aims to serve five million European homes with its clean energy-tech solutions over the next decade. Additionally, Aira plans to introduce an affordable monthly payment model, diversify its clean energy-tech portfolio, invest in research and technology, and establish a state-of-the-art manufacturing site in Poland. The latter has received an additional €15 million grant from the Polish government. This funding underscores Aira’s commitment to spearheading a green revolution in residential heating and promoting sustainable, cost-effective energy solutions across Europe.
Aira provides clean energy-tech solutions with a focus on accelerating the electrification of residential heating in Europe. The company aims to help households reduce energy bills, drive decarbonization, and decrease dependency on natural gas. Aira’s innovative and accessible solution involves transitioning from fossil fuel-based boilers to air source heat pumps. These pumps have the potential to reduce household heating costs by up to 40% and CO2 emissions by 75%, or 100% if powered by fossil-free energy.
In addition to the equity funding, the Polish government has granted Aira €15 million for establishing a manufacturing site in Poland to produce intelligent and connected heat pumps. The company follows a vertically integrated model and offers a consumer-centric monthly payment plan with no upfront costs. Overall, Aira’s mission is to empower individuals to join the clean energy revolution, one home at a time.
Martin Lewerth, Aira Group CEO, says, “We are thrilled to welcome our new shareholders. Above and beyond the funding, they bring invaluable strategic insights, networks, and expertise. Together, we are committed to spearheading the much-needed green revolution in residential heating. The completion of our Series B funding makes us well capitalised and ready to accelerate our pan-European platform expansion, significantly reducing both heating bills for households and carbon emissions across Europe.”
Lisa Barclay, Executive Director of Nesta Impact Investments, says, “For over a decade, Nesta Impact Investments has been dedicated to supporting innovative businesses that address serious social challenges, including utilising the expertise of Nesta’s research to help boost these ventures. Our investment in Aira brings together our record of supporting purpose-driven businesses with our commitment to reduce household carbon emissions. Aira is making the transition to greener heating more accessible and affordable, filling a gap in the market for heat pumps by providing them without the usual upfront costs and with an end-to-end service from insulation and installation to aftercare. The scale of Aira’s ambitions for the UK market is exactly what is needed to meet the country’s net zero commitments, so Nesta Impact Investments is delighted to be investing to support their business.”
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