Aira, a rapidly growing heat pump startup, announced it has secured €150 million (approximately USD $174 million) in a new equity financing round. The funding will support the company’s efforts to expand its operations and broaden its product portfolio, advancing the electrification and decarbonization of residential heating.

Heat Pumps: A Climate-Friendly Alternative

Heat pumps are gaining traction as an energy-efficient and environmentally friendly alternative to traditional furnaces and air conditioners. They emit significantly fewer greenhouse gases and reduce dependence on fossil fuels. According to Aira, replacing a gas boiler with its air source heat pump solution can lower household heating costs by up to 40%. When powered by renewable energy, these heat pumps can eliminate CO2 emissions entirely.

Read more: EIF Commits €75 Million to Sustainable Transport and Energy Transition Initiatives

Company Background and Market Expansion

Founded in 2023 by impact company builder Vargas, Aira is headquartered in Stockholm, Sweden. The company offers clean energy solutions for heating and powering homes, featuring an air source heat pump that captures outdoor thermal energy to heat indoor spaces and water. Aira has expanded into Germany, Italy, and the UK, boasting a revenue run-rate of €200 million. It currently employs 1,200 staff members and operates 18 hubs along with four Aira Academies dedicated to training heat pump installers across Europe. The company plans to further penetrate European markets over the coming decade.

Plans for Capital Deployment

Aira intends to use the new capital to accelerate its operational scale-up and product development. Investments will be directed to its Swedish R&D center to enhance its integrated product portfolio and increase manufacturing capacity at its factory in Wroclaw, Poland. The company also aims to strengthen its foothold in existing markets and cultivate strategic partnerships with prominent players in the home and energy sectors.

Investor Support

This financing round was led by Aira’s existing investors, including Altor, Kallskär-related entities such as Vargas, Kinnevik, Lingotto, and Temasek.

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CEO Statement

Peter Prem, Group CEO of Aira, stated, “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.”

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