European clean energy company Aira has closed a €150 million equity round from existing backers to expand its residential heat pump business across the continent. The funding comes from investors including Altor, Kallskär, Kinnevik, Lingotto and Temasek.
The Stockholm-based company, which launched operations in June 2023, has achieved a €200 million annual sales run-rate while expanding into Germany, Italy, and the United Kingdom. Aira now employs 1,200 people across 18 operational hubs and operates four training academies for heat pump installers.
Vertical Integration Strategy
The fresh capital will support Aira’s vertically integrated approach, funding expansion of its Swedish research and development center and increasing production capacity at its manufacturing facility in Wroclaw, Poland. The company plans to deepen its market presence in current territories while forming strategic partnerships within the home and energy sectors.
“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” said Peter Prem, Aira Group CEO.
Market Opportunity
Residential heating represents the third-largest source of carbon dioxide emissions across Europe, accounting for 10% of the continent’s total emissions. With 130 million boilers currently operating across European households, the replacement market presents significant decarbonization potential.
Aira’s heat pump systems can reduce household heating costs by up to 40% compared to gas boilers while eliminating up to 100% of emissions when paired with clean energy tariffs. The company offers customers a monthly payment plan requiring no upfront investment, alongside installation services and a 15-year guarantee.
“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” Prem noted.
Technology and Service Model
The company combines manufacturing capabilities with direct-to-consumer sales and comprehensive installation services. Its integrated product portfolio centers on intelligent heat pump technology designed to reduce volatile energy costs for residential customers.
Aira’s training academies address the skilled installer shortage that has constrained heat pump adoption across Europe. The facilities develop expertise in installation and maintenance of air source heat pump systems.
The funding round reflects continued investor confidence in European energy transition opportunities as governments implement policies favoring electrification of residential heating systems over fossil fuel alternatives.