After raising €145M, Sweden’s Aira secures €200M to remove this one huge barrier to heat pump adoption

Stockholm-based Aira, a clean energy tech company, recently announced that it has secured €200M in debt commitments from BNP Paribas to facilitate the installation of Aira Heat Pumps in thousands of homes across Germany.

Martin Lewerth, Aira Group CEO, continues, “With substantial debt financing facilities from partners like BNP Paribas, we are set to remove one huge barrier to heat pump adoption and turbocharge our rollout across Europe. This securitisation with BNP Paribas marks the first step in Aira’s consumer financing journey and represents a major leap towards moving Europe off fossil fuel-based boilers.”

The announcement comes a few months after the company raised €145M in a Series B financing round led by Altor, Kinnevik, and Temasek and also includes the Burda family, Collaborative Fund, Creades, Lingotto, Nesta Impact Investments, and Statkraft Ventures.

In March 2024, the Swedish company launched the Aira Heat Pump. 

Aira: Tackling Europe’s third biggest source of CO2 emissions

Founded by Vargas Holding, Aira provides clean energy-tech solutions to consumers and aims to accelerate the electrification of residential heating through the Aira heat pump.

Taking a digital-first approach, the Aira Heat Pump is operated through a smart app and thermostat.

The heat pump also comes equipped with ‘Aira Intelligence’, a set of smart, connected features that continuously learn the customer’s routine and household habits to precision plan heating and hot water.

The Swedish company is making heat pump technology available to all through its all-inclusive monthly payment plan and an industry-first 15-year ‘Comfort Guarantee’.

The heat pump delivers up to 40 per cent heating cost savings and reduces CO₂ emissions by at least 75 per cent from day one.

The company plans to serve five million households across Europe over the next decade while employing 20,000 clean energy-tech roles.

The company is backed by climate and innovation investors including Altor, the Burda family, Collaborative Fund, Creades, Kinnevik, Lingotto, Nesta Impact Investments, Statkraft Ventures, and Temasek.

Ane Launy, Aira Group CFO, says,  “We are immensely proud to have secured this €200m warehouse financing facility with BNP Paribas. The facility is a crucial milestone in our fundraising journey and the funds will play a pivotal role in addressing the high upfront costs that customers are currently facing.”

“The support from BNP Paribas underscores the essential role of innovative financing in driving the energy transition and highlights the growing recognition of home energy solutions in combatting climate change and advancing energy security. With this facility, we are better equipped to meet the rising demand for heat pumps in Europe and help pave the way for a significant reduction in residential carbon footprints,” adds Launy. 

What the investor has to say?’

Eirik Winter, CEO of BNP Paribas Group Nordic region, says, “Clean and affordable home energy solutions is a crucial component in the transition to an inclusive net-zero economy.  We are pleased to support Aira on this important initiative to accelerate heat pump adoption and the energy shift. This partnership not only aligns with our strategic goals of fostering sustainable investments but also represents the opportunity to develop an innovative asset class in Europe.”