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Aira secures €150m to expand residential heating electrification in Europe
12 August 2025

Aira secures €150m to expand residential heating electrification in Europe

Aira has raised €150 million in equity financing from existing investors Altor, Kallskär, Kinnevik, Lingotto and Temasek to accelerate the electrification of residential heating across Europe. Since its launch in June 2023, the company has entered Germany, Italy and the UK, reaching an annual sales run rate of €200 million. Aira offers a monthly payment plan, end-to-end service, and a 15-year guarantee, and currently employs 1,200 people with 18 hubs and four training academies for heat pump installers across Europe.

The new funds will support scaling operations, expanding Aira’s intelligent clean energy technologies, and increasing R&D investment at its Swedish centre. Production capacity at the company’s factory in Wroclaw, Poland, will also be expanded. Aira plans to strengthen its presence in current markets and grow strategic partnerships in the home and energy sectors to boost customer cost savings.

Residential heating accounts for 10% of Europe’s total CO₂ emissions, with around 130 million boilers still in use. According to Aira, switching from a gas boiler to its air source heat pump solution can lower household heating costs by up to 40% and reduce CO₂ emissions by up to 100% when combined with clean energy tariffs.

“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. “It empowers us to double down on our mission to take Europe off gas by expanding with operational excellence, launching new innovations, and accelerating our growth to bring clean energy-tech to millions of homes.”

Prem added: “The European heat pump market is expected to reach more than €150 billion by 2030, and with our vertically integrated model and world-class products, Aira is uniquely positioned to transform home energy across Europe. Backed by world-class investors, we’re building a clean energy-tech leader with expert teams and a clear mission to decarbonise residential heating, all while lowering energy bills and increasing household comfort for millions.”

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