Aira secures €150 Million to fuel European heat pump expansion

In less than a year, Swedish clean energy company Aira has attracted another major round of funding, further cementing its position as one of Europe’s fastest-growing players in sustainable residential heating. The Stockholm-based firm, which specialises in clean energy-driven heating solutions, has secured €150 million in equity financing from its existing backers, including Altor, Kallskär1, Kinnevik, Lingotto and Temasek.

This investment follows just ten months after Aira raised €63 million in equity funding, underscoring the strong confidence its investors have in the company’s growth trajectory.

Where the money will go

The newly secured capital will fuel Aira’s rapid expansion, enabling the company to scale its intelligent clean energy technology across Europe. Part of the funds will be channelled into enhancing research and development at its innovation hub, where the team is working to advance an integrated portfolio of products designed to reduce household energy costs and emissions.

Aira also plans to boost production capacity at its manufacturing facility in Wroclaw, Poland. At the same time, it will deepen its presence in existing markets, build stronger alliances with key partners in the energy and home sectors, and broaden its customer base. The goal is simple: make clean, efficient home heating accessible to millions while delivering significant cost savings to households.

Since its launch in June 2023, Aira has quickly expanded into Germany, Italy and the United Kingdom. In just over a year, it has established itself as a leading clean energy technology provider in the region, achieving an annual sales run rate of €200 million.

The company offers a fully integrated service, from product installation to maintenance, alongside a monthly payment plan that eliminates upfront costs. Every installation comes with a 15-year Aira Guarantee, providing customers with long-term peace of mind.

Today, Aira employs 1,200 people and operates 18 hubs across Europe. It has also founded four Aira Academies to train a new generation of highly skilled heat pump installers, ensuring that the workforce keeps pace with demand.

Founded in 2022, Aira is dedicated to accelerating the electrification of residential heating through advanced heat pump technology. Its vertically integrated business model and customer-focused payment options allow households to adopt clean energy without financial barriers.

“This investment reflects the strong, long-term support of our investors and enables us to build on the substantial foundation we’ve established as we transition from a start-up to scale-up. It empowers us to double down on our mission to take Europe off gas by expanding with operational excellence, launching new innovations, and accelerating our growth to bring clean energy-tech to millions of homes,” says Peter Prem, Aira Group CEO.

Aira is backed by a range of climate- and innovation-focused investors, including Altor, the Burda family, Collaborative Fund, Creades, Kallskär-related entities such as Vargas, Kinnevik, Lingotto, Nesta Impact Investments, Statkraft Ventures, and Temasek.

With this latest funding, the company is poised to continue its rapid rise, delivering cleaner, cheaper and more intelligent home heating solutions across the continent.

"The European heat pump market is expected to reach more than €150B by 2030, and with our vertically integrated model and world-class products, Aira is uniquely positioned to transform home energy across Europe. 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. We’re just getting started. Aira is ready to lead the clean energy transition – one home at a time,” Peter Prem continues.