Swedish startup Aira has raised €150 million in fresh equity to expand its heat pump operations across Europe, positioning itself as a key player in residential energy electrification. Backed by investors including Kinnevik, Altor, Lingotto, Kallskär, and Temasek, the funding will scale production, R&D, and market presence.

Aira’s business model combines proprietary air-source heat pump technology with a vertically integrated service offering: design, installation, maintenance, and financing—all under one monthly plan. Customers pay no upfront cost and receive a 15-year performance guarantee. This format is designed to remove adoption friction while accelerating decarbonization at the household level.

Since its launch in 2023, Aira has expanded into the UK, Germany, and Italy, reaching an annual revenue run rate of €200 million. It currently operates 18 service hubs and four in-house academies to train technicians—addressing one of the industry’s chronic bottlenecks: installer capacity. The firm employs around 1,200 people and recently opened a €321 million production facility in Poland.

Proceeds from this latest round will support expanded output from the Polish factory, deepen integration in existing markets, and drive R&D activity at its Swedish HQ. It will also support strategic partnerships across utilities, real estate, and energy transition platforms.

Europe’s heat pump sector is growing, but progress remains uneven. Over 130 million gas boilers are still in operation across the EU, with residential heating responsible for roughly 10% of Europe’s CO₂ emissions. Aira positions heat pumps as a cost-effective, zero-emissions alternative. Internal estimates suggest savings of up to 40% on heating bills, particularly when paired with renewable energy tariffs.

Policy shifts could provide additional tailwinds. While Germany and the UK have rolled out subsidies and mandates, other countries remain underpenetrated. If significant incentives materialize in markets like France or Spain, Aira could scale beyond projections.

This latest raise not only boosts operational capacity but signals growing investor appetite for scalable, capital-efficient climate infrastructure with consumer appeal. Aira’s approach—full-stack, decentralized, and subsidy-aligned—could serve as a template for low-emissions home energy systems at a continental scale.