Swedish clean energy tech firm Aira secures €200M for heat pump expansion in Europe

The clean energy technology startup Aira, based in Stockholm, recently revealed that BNP Paribas has agreed to loan €200 million to enable the installation of Aira Heat Pumps in thousands of German homes.

“With substantial debt financing from partners like BNP Paribas, we are poised to overcome a major barrier to heat pump adoption and accelerate our rollout across Europe,” says Martin Lewerth, CEO of Aira Group. This securitization with BNP Paribas is a significant step toward Europe’s transition away from boilers that burn fossil fuels and signifies the beginning of Aira’s consumer financing journey.

Shortly after raising €145M in a Series B financing round led by Altor, Kinnevik, and Temasek and including the Burda family, Collaborative Fund, Creades, Lingotto, Nesta Impact Investments, and Statkraft Ventures, the company made this announcement.

The Swedish company introduced the Aira Heat Pump in March of 2024

Aira: targeting EU’s 3rd largest CO2 source

Aira, founded by Vargas Holding, aims to accelerate the electrification of residential heating through the use of Aira heat pumps while also offering consumers clean energy-tech solutions.

Using a digital-first strategy, the thermostat and smart app control the Aira Heat Pump.

Additionally, the heat pump is outfitted with “Aira Intelligence,” a suite of intelligent, networked functions that continuously assimilate the routine and household habits of the user in order to precisely schedule hot water and heating.

The Swedish company is democratizing heat pump technology by offering an industry-first 15-year “Comfort Guarantee” along with an all-inclusive monthly payment plan. From the first day of operation, the heat pump can save up to 40% on heating costs and at least 75% on CO2 emissions.

Over the next ten years, the company hopes to serve five million households in Europe and create 20,000 clean energy-tech jobs.

Altor, the Burda family, Creades, Collaborative Fund, Kinnevik, Lingotto, Nesta Impact Investments, Statkraft Ventures, and Temasek are among the investors supporting the company in the climate and innovation space.

Ane Launy, Aira Group CFO, states that securing the €200m warehouse financing facility with BNP Paribas is a crucial milestone in their fundraising journey, as it will help address the high upfront costs customers face.

Launy also says that BNP Paribas’s support shows how important new financing is for the energy transition and how home energy solutions are becoming more known as a way to fight climate change and improve energy security.

With this facility, Aira Group is better equipped to meet the rising demand for heat pumps in Europe and contribute to a significant reduction in residential carbon footprints.

What is the investor’s perspective?

“Clean and affordable home energy solutions is a crucial component in the transition to an inclusive net-zero economy,” says Eirik Winter, CEO of BNP Paribas Group Nordic region.

Winter expressed that they are happy to assist Aira in this significant endeavor to hasten the energy transition and the adoption of heat pumps. This collaboration also offers them the chance to create a novel asset class in Europe in addition to supporting our strategic objectives of encouraging sustainable investments.