World Fund backs extended raise for Sweden's SunRoof

Insurance CVC Legal & General Capital also participated to extend SunRoof's total for the round to €28.5 million.
World Fund backs extended raise for Sweden's SunRoof

Climate tech LP unit World Fund is starring in the latest €13.5 million raise for Swedish solar installation startup SunRoof, in what's being billed as a "growth funding extension" to the round, now totalling €28.5 million.

As with Dresden-based Sunnmaxx, tracked by earlier today, SunRoof is providing "2-in-one" solar PV panels that produce electricity.

What's different, however, is that SunRoof mainly targets household and commercial rooftops, letting customers unplug from the grid. Customers also receive an end-to-end service, for example through energy management software, storage and a consumption monitoring app.

Goes without saying on SunRoof's reach; the startup mainly focuses on Swedish households while Sunnmaxx is based in Germany, though SunRoof's making German in-roads too and Poland is also on its radar.

With the latest funding, it's looking to continue expanding to consolidate in its three operating markets, and will appoint a new chief operating office to support these goals.

Lech Kaniuk, SunRoof CEO and co-founder, said: "The energy transition is not a plan for the future, it’s the mission we must carry out now.

"This year has proved it already, with Europe overwhelmed with heat waves and shadowed by energy insecurity. SunRoof is on a mission of not only helping homeowners fulfill their own needs, but also contributing to the future clean energy infrastructure."

So far it seems like pretty standard solar fare, but SunRoof is selling the strength of its product design with innovative panel façades that reduce surface area taken up by each solar panel, allowing them to fit on top of smaller rooftops than the competition. There's an emissions gain, too. Solar is far less carbon intensive than fossil fuels, but there's still emissions involved in supply chains, and also when decommissioning at the end of its operating lifespan. Having a smaller form factor for hybrid solar generation should help to reduce some of those emissions.

World Fund is being joined by a major CVC as far as climate tech's confirmed, in the form of  Legal & General Capital, the strategic investment arm of insurer Legal & General.

L&G's participation is notable given insurers constantly explore options to reduce emissions exposure. Getting a strategic investor of its calibre through the door will be seen as pretty major win.

Nordic Alpha Partners also subscribed to the extension adding to an earlier €15 million sum led by Klima Energy Transition, a growth equity fund spearheaded by investment bank Alantra that wrapped up its final close at €210 million in September.

That same month, Klima invested in the original €15 million tranche together with VC funds Inovo VC, SMOK Ventures, Alfabeat and Level2 Ventures, alongside business angels including elite skier-turned-entrepreneur Jon Olsson.

SunRoof is led by its founder Lech Kaniuk, a serial entrepreneur credited with earlier roles growing notable European startups Delivery Hero, PizzaPortal and iTaxi

Alantra's Energy Transitions managing partner, Lucille Bonnet, says decentralised solar holds the key to a widescale electrification programme targeting households, as well as electrifying transport networks.

"Housing and transportation electrification will be key to accelerate the energy transition, and we expect decentralised solar to play a significant role to enable this," Bonnet said. "For re-roofing and new built applications, the integrated solutions of SunRoof are an economical and environmental no-brainer and this represents a multi-billion addressable market. We are glad to partner with the very experienced and ambitious management team of Sunroof to power the houses and commercial buildings of the future.”

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