Aira, a Stockholm-based heat pump startup founded by impact company builder Vargas in 2023, has announced the successful raising of €150 million in new equity financing. This funding aims to support the expansion of its operations and product offerings, primarily targeting the electrification and decarbonisation of residential heating.
Heat pumps are gaining traction as an energy-efficient and environmentally friendly alternative to traditional furnaces and air conditioners. They significantly reduce greenhouse gas emissions and lower dependency on fossil fuels. Aira claims that transitioning from a gas boiler to its air source heat pump can cut household heating costs by up to 40% and completely eliminate CO2 emissions if powered by renewable energy.
Aira’s air source heat pump absorbs thermal energy from the outdoors to heat homes and water. Since its inception, the company has expanded into Germany, Italy, and the UK, achieving a revenue run-rate of €200 million. Aira employs 1,200 people and has established 18 hubs and four Aira Academies across Europe to train heat pump installers. The company plans to further penetrate European markets over the next decade.
The newly acquired funds will accelerate the scale-up of Aira’s operations and product range. The company intends to invest in its Swedish R&D centre to enhance its integrated product portfolio and increase production capacity at its Wroclaw, Poland factory. Additionally, Aira aims to strengthen its presence in existing markets and build strategic partnerships with key players in the home and energy sectors.
The equity financing was secured from existing investors, including Altor, Kallskär-related entities such as Vargas, Kinnevik, Lingotto, and Temasek.
Peter Prem, CEO of Aira Group, stated, “Backed by world-class investors, we’re building a clean energy-tech leader with expert teams and a clear mission to decarbonise residential heating, all while lowering energy bills and increasing household comfort for millions.”
