Aira secures €145 million for heat pump expansion, manufacturing

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Aira, a heat pump specialist based in Sweden, has raised €145 million ($158.2 million) in a Series B financing round, led by Altor and Kinnevik, two Swedish institutional investors, and Singaporean investment fund Temasek.

Aira has also secured a €15 million grant from the Polish government to establish a heat pump manufacturing facility in Wroclaw, Poland, the company said in a statement. It aims to start production in the first half of 2024.

Aira offers heat pumps directly to consumers on a monthly fee basis. It recently launched its products in Italy, Germany, and the UK. It will use the new capital to continue to address the residential market.  It has additional plans to invest in the Aira portfolio of energy-related products and services, such as intelligent heat pumps, solar panels, battery storage and electricity tariffs.

Aira is a Vargas-founded company, which is the same group that established Swedish battery specialist Northvolt.

Since its founding in 2022,  Aira has secured €195 million in equity funding and grants, it said in a statement, including its €35 million series A round announced last year. Other Aira investors include Sweden-based Creades, Statkraft Ventures and the Burda family, both based in Germany. The group also comprises US-based Collaborative Fund, Lingotto Investment Management, wholly-owned by Duth holding company Exor, along with UK-based Nesta Impact Investments.

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