Aira Raises $69M To Expand Heat Pumps Across Europe

Aira, a clean energy heating solutions provider for European homes, has raised another €63 million (USD $69 million) to expand its range of heat pumps across the Europe region. The new funding round is led by existing investors: Temasek, Statkraft Ventures, Kinnevik, and Altor. This additional funding amounts to €63 million, in addition to the previous €145 million Series B round that was closed in January 2024.

The company was founded in 2022 by impact company builder Vargas and works toward accelerating energy-efficient heating solutions across Germany, Italy, and the UK. Using new funds, it would scale its operations to release more clean energy technologies. CEO Martin Lewerth further added that this new investment would help Aira take advantage of its growing commercial success as well as expand a fully integrated platform in key markets.

Aira’s heat pumps offer an environmentally friendly alternative to traditional furnaces and air conditioners because they do not contribute to greenhouse gas emissions or fossil fuel dependency. In fact, it claims that it can reduce the heating bill of a home using a gas boiler by up to 40 percent and cut its CO2 emissions by 75 percent. And if those fossil-free energies are used, reductions in CO2 can range from 100 percent. Currently, Europe has approximately 130 million fossil fuel-based boilers. Combustion for residential heating accounts for around 10% of the total emissions of CO2 on the continent.

The company has invested in quite significant infrastructures to power the effort for a clean energy transition: this year, the firm started manufacturing its first heat pump from a new plant in Wroclaw, Poland; committed to investing in the production of up to 500,000 heat pumps annually at a cost of €300 million. The company has also established a research and development center in Sweden and launched a consumer financing program to make its products more accessible.

In addition to its manufacturing, Aira diversified its market reach by opening 11 new regional sales and installation hubs, which visit thousands of homes monthly. It has also added academies across its markets to train the next wave of clean energy experts and installers.

Aira has raised €243 million in equity funding and is already working with 1,200 people, operating at an annual revenue run rate of €100 million. At a time when Europe is struggling to find its footing through the grip of a cost-of-living crisis, Aira’s affordable, climate-friendly heat solution brings answers to reduce energy costs and emissions.

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