Swedish heat pump startup Aira bags €20M, hitting €270M funding milestone

Founded in 2022 by prominent Swedish financier Harald Mix's investment company Vargas, Aira is continuing to strengthen its financial position.

Maria Stern, a press spokesperson at Aira, confirmed its latest funding milestone to Impact Loop: "It's correct that Aira has raised additional capital, 230 million SEK,” she wrote in an email, declining to comment further.

The sum, 230 million SEK (equivalent to around €20 million), was raised as part of Aira's Series B funding round (the stage of investment aimed at scaling a company that has already proven its business model and market potential).

Core investor Mix is a well-known figure in Nordic investment circles, having co-founded private equity firm Altor and backed several impact ventures through Vargas, including battery manufacturer Northvolt, and carbon-cutting steel manufacturer H2 Green Steel (now called Stegra).

Vargas’ latest cash injection is the third major financing round in a year for Aira. In October 2024, the heat pump startup raised €63 million (700 million SEK) from investors including Singapore's state investment firm Temasek, Norwegian energy company Statkraft Ventures, Swedish investment firm Kinnevik, and Nordic private equity firm Altor.

Prior to that, in early 2024, the company secured €144 million (1.6 billion SEK).

With the latest investment, Aira has now raised a total of over €270 million in venture capital, indicating continued strong investor interest in the company's business model of offering smart heat pumps through monthly payment plans.

European expansion

Aira has focused on growth in Germany, Italy, and the UK over the past year. The company is actively working to reduce Europe's dependence on fossil fuels for residential heating – a sector responsible for approximately 10 percent of Europe's carbon emissions, with an estimated 130 million fossil-fueled heating systems still in use across the continent.

Under CEO Martin Lewerth's leadership, Aira has established a development center in Sweden and operates a 220,000 square meter production facility in Poland. In an interview with Impact Loop last year, Lewerth revealed that the company's ambitions extend beyond just selling heat pumps:

"Today we're already installing heat pumps, solar panels, electric vehicle chargers, and we're even doing additional insulation. So we'll see more development in that direction. We offer a complete solution for the home. That's the plan," he said.