Heat pump specialist raises £124m in funding round

Aira, the Swedish clean energy specialist that last year acquired Sheffield’s All Seasons Energy in a cross-border deal, has raised €145m (£124m) in a series B funding roundm significantly more than its initial €85m target.

The Series B round was led by Altor, Kinnevik and Temasek and also includes the Burda family, Collaborative Fund, Creades, Lingotto, Nesta Impact Investments and Statkraft Ventures.

The equity funding will allow Aira to further accelerate the electrification of residential heating in Europe to enable European households to reduce their energy bills, to drive decarbonisation, and to reduce dependency on imports of natural gas.

When it acquired All Seasons in August, Aira said it would use its Sheffield base to expand through the UK. In November it announced plans for academies in Yorkshire and London to train thousands of staff and achieve a target of one million installations in the UK.

The firm said the new capital will further spearhead its ambition to take Europe off gas. In total, Aira has secured €195 million in equity funding and grants, establishing a strong foundation to support its ambitious long term growth objectives.

The funding will accelerate Aira’s strategy by aiding further investments in rapid market expansion across Italy, Germany, and the UK, and allowing it to introduce a monthly payment model.

It will also allow it to broaden its portfolio of clean-energy products and services, including intelligent heat pumps, solar panels, battery storage and electricity tariffs, and allow R&D to provide simple, customer-centric solutions.

Aira Group chief executive Martin Lewerth said, “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.”

“Aira is investing across the UK to help British households accelerate the important transition from dirty gas boilers to clean heat pumps. Aira research recently revealed that nearly six million British families are considering investing in an intelligent heat pump in 2024 and it’s encouraging to read that sales grew 20% in 2023. With this in mind, it’s important for us to invest in training and upskill engineers to help us serve one million households across the UK over the next decade. I’m sure with continued government support, Aira will help to secure Britain’s energy needs and reach its net-zero goals.”

Lisa Barclay, executive director of Nesta Impact Investments, said, “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.”