Swedish clean energy company Aira secures €86M for green heating innovation

Swedish clean energy company Aira secures €86M for green heating innovation

Sweden-based Aira, a clean energy technology company, announced that it has secured SEK 1B (€86M) in funding from a group of investors to help Europe transition from gas and speed up the journey toward energy independence.

Altor, Collaborative Fund, Creades, Kinnevik, and Lingotto are among some of the investors in Aira’s mission. 

“We are delighted to welcome our new investors, who all have a track record of scaling impact companies. Our investors join us on our mission to drive the green transition and to take Europe off gas,” says Martin Lewerth, CEO of Aira Group.

Airs says the fresh capital will be used to expand its fully integrated platform across Europe and improve its services to customers.

“The funding secured is a key milestone on our journey to serve five million European households with clean energy-tech solutions. With this investment, we will further expand our European presence and accelerate our product and tech development to become a leading direct-to-consumer brand,” Lewerth adds.

Transforming European home heating

Europe currently relies on about 130 million fossil fuel-based boilers to heat homes, contributing to 10 per cent of Europe’s CO₂ emissions. A shift towards air-source heat pumps presents a significant opportunity to reduce household heating costs and carbon emissions.

Aira provides an accessible and innovative solution that accelerates the electrification of residential heating through intelligent clean energy technology. The company says that with Aira, European consumers have a dependable source for comprehensive home energy-saving solutions using intelligent heat pumps.

This technology enables households to save up to 40 per cent on heating expenses while reducing CO₂ emissions by more than 75 per cent. 

Aira’s consumer services are already available in Italy and Germany, with plans to launch in the UK later this year.

The company is also planning to expand in Italy and Germany to create 10,000 new clean energy jobs and serve five million homes over the next ten years. It will introduce a budget-friendly monthly payment plan for easier access to energy solutions.

In addition, Aira will diversify its tech portfolio, incorporating solar energy, dynamic energy tariffs, and smart heat pumps. Research and technological advancements will simplify the customer experience for energy optimisation. 

To meet increasing demand, the company will expand its manufacturing capabilities in Poland.

What the investors say

Commenting on the clean energy initiative, Georgi Ganev, CEO of Kinnevik, says, “At Kinnevik, we continue to focus on our generation’s biggest challenge – climate change. Residential heating stands for around 10 per cent of the CO₂ footprint, and we believe that Europe is at the start of a major transformation towards green energy.”

“We strongly believe in Aira’s vision to connect the full value chain, which allows for stronger margins and a harmonised consumer experience. Bold visions require great execution, and Martin Lewerth and the team have the right combination of experienced leadership and expertise across the critical functions,” he adds. 

Andrew Montgomery, partner at Collaborative Fund, says, “Our strategy is to invest in businesses that can generate the highest possible financial returns and have the largest climate impact – and we are constantly reviewing initiatives from entrepreneurs, startups, and large corporations.”

“We are excited about Aira’s bold ambitions for clean energy tech for every home, as residential heating is a prioritised sector from an abatement perspective. We’re also thrilled to be investing in a Swedish company helping to export the Nordics’ leadership in heat pump adoption, innovation, and design,” adds Montgomery.