Swedish clean energy-tech company Aira has raised €150 million ($175 million) in equity funding to speed up the shift to electric residential heating across Europe.
The firm said in a statement on Monday that the investment is secured from existing investors, Altor, Kallskär¹, Kinnevik, Lingotto, and Temasek.
Aira will use the new funding to quickly grow its operations and expand its smart clean energy products.
The company will invest in its R&D center in Sweden to develop a full range of products and increase production at its factory in Wroclaw, Poland.
It also plans to strengthen its presence in current markets and build stronger partnerships with major players in the home and energy industries, helping it reach more customers and offer bigger cost savings.
Since starting in June 2023, Aira has entered Germany, Italy, and the UK, becoming one of Europe’s leading clean energy-tech companies with an annual sales run rate of €200 million ($233.71 million).
Aira offers customers a unique package that includes a monthly payment plan, full end-to-end service, and a 15-year Aira Guarantee.
The company now has 1,200 employees, 18 hubs, and four Aira Academies to train skilled heat pump installers across Europe.
“This investment reflects the strong, long-term support of our investors and enables us to build on the substantial foundation we’ve established as we transition from a start-up to scale-up,
“It empowers us to double down on our mission to take Europe off gas by expanding with operational excellence, launching innovations, and accelerating our growth to bring clean energy-tech to millions of homes,” said Peter Prem, Aira Group Chief Executive Officer.
Across Europe, 130 million boilers are still in use, making residential heating the third biggest source of carbon dioxide (CO₂) emissions and responsible for 10% of the continent’s total emissions.
By replacing a gas boiler with Aira’s air source heat pump, people can cut their home heating costs by up to 40% and reduce CO₂ emissions by up to 100% when using clean energy tariffs.
“The European heat pump market is expected to reach more than €150 billion ($175 million) by 2030, and with our vertically integrated model and world-class products, Aira is uniquely positioned to transform home energy across Europe,” said Prem.
“Backed by world-class investors, we’re building a clean energy-tech leader with expert teams and a clear mission to decarbonize residential heating, all while lowering energy bills and increasing household comfort for millions,
“We’re just getting started. Aira is ready to lead the clean energy transition – one home at a time,” he added.
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