Aira raises €145M to provide green heating subscription services in Europe

Swedish heat pump supplier Aira has raised €145 million in Series B funding to provide green heating subscription services to millions of European households.

Founded by Vargas in 2022, the company aims to become the leading supplier of air-source heat pumps in Europe. Vargas is known for its role in launching energy storage company Polarium, EV battery manufacturer Northvolt, and sustainable steel maker H2 Green Steel.

Aira said the newly secured equity investment would accelerate its market expansion across the UK, Italy, and Germany, providing clean heat technology in five million European homes in the next decade.

In the UK, the company aims to generate 8,000 jobs in different areas across the country, including Manchester, Sheffield, and London.

Aira plans to make green home heating technology more accessible through an affordable monthly payment. It will also expand its offerings to include intelligent heat pumps, solar panels, battery storage systems, and flexible electricity tariffs.

“Aira is making the transition to greener heating more accessible and affordable,” said Nesta Impact Investment executive director Lisa Barclay.

“To fill the market gap for heat pumps by providing them without upfront costs and an end-to-end service from insulation and installation to aftercare.”

The Series B funding round was led by Altor, Kinnevik, and Temasek, with participation from Lingotto, the Burda Family, Nesta Impact Investments, and Statkraft Ventures.

Aira Group CEO Martin Lewerth said the company’s new shareholders would contribute invaluable strategic insights, networks, and expertise to facilitate business expansion.

The latest fundraising followed a €87 million equity raised last year. Additionally, the Polish government has provided Aira €15 million to support its heat pump factory development. Overall, Aira has secured €195 million in equity and grant funding to date.

The new capital investment is expected to help Aira “take Europe off gas.” Residential heating is currently responsible for 10 percent of Europe’s total CO2 emissions, representing 130 million fossil fuel boilers across the continent. Switching to Aira’s air source heat pump can save up to 40 percent on heating costs in addition to reducing CO2 emissions by 75 percent to 100 percent.